Texas Supreme Court

W. Sale Lewis, Savings and Loan Commissioner v. Metropolitan Savings and Loan Association

March 9, 197720 Tex. Sup. Ct. J. 221

Summary

The Texas Supreme Court held that the Savings and Loan Commissioner’s approval order was invalid for arbitrariness because the hearing examiner excluded competent and material evidence (Contestant’s Exhibit 34), thereby denying due process, even though the order was supported by substantial evidence. The Court remanded the matter to the Commissioner to reopen the hearing and consider the excluded evidence, affirming the modified judgment of the Court of Civil Appeals. Justice McGEE dissented, arguing the exclusion was harmless and should not warrant reversal.