In Montgomery Independent School District v. Davis, 34 S.W.3d 559 (Tex. 2000), the supreme court considered the termination of a public school teacher under Texas Education Code chapter 21, subchapter F, specifically, section 21.259. There, a teacher was terminated for allegedly violating district policy by failing to maintain an effective working relationship and good rapport with parents, the community, and colleagues. 34 S.W.3d at 561. The school district appointed an independent hearing examiner to conduct an evidentiary hearing and make findings of fact, conclusions of law, and recommendations regarding the teacher's termination. Id. The hearing examiner found that there were no grounds for the school district to terminate the teacher, but after considering the hearing examiner's findings and determinations, the school district board made its own evidentiary findings tending to support a conclusion that the teacher had violated district policy and voted to terminate the teacher. Id. The school board's decision, which was affirmed by the Commissioner of Education, was reversed by the trial court. Id. The court of appeals affirmed the trial court's judgment. Id. at 562. On appeal to the supreme court, the school board argued that it was entitled to make the ultimate determination as to whether the teacher had failed to maintain effective working relationships and good rapport because such determination involved interpreting district policy. Id. at 563. The school board further argued that the board's statutory powers allowed it to make additional fact findings. Id. The teacher argued on appeal that the board was bound by the hearing examiner's finding that she did not fail to maintain effective relationships or good rapport with parents, the community, and colleagues because such finding was supported by substantial evidence. Id. at 564. She also argued the board did not have the statutory authority to make additional fact findings. Id. First, the supreme court rejected the school board's contention that it was authorized to make additional findings of fact. The court stated that "if a board could find additional facts, resolving conflicts in the evidence and credibility disputes, it would then be serving as its own factfinder despite delegating the factfinding role to a hearing examiner, and the process of using an independent fact-finder would be meaningless." Id. The court recognized that when a school board reviews the facts of the case, section 21.259 of the Education Code limits school boards to conducting a substantial evidence review, id. at 565, which the court stated is "a limited standard of review, requiring 'only more than a mere scintilla,' to support an agency's determination." Id. at 566 . Second, the court determined that because school boards retain the authority to make the ultimate decision of whether the facts demonstrate board policy was violated, school boards may, under section 21.259 of the Education Code, reject or change a hearing examiner's conclusions of law or the examiner's proposal for relief so long as the board's decision is supported by substantial evidence and free from legal error. Id. at 564-66. The court stated: "We do not suggest that a school board must simply accept an examiner's recommendation; under section 21.259(b)(1), the board may reject or change conclusions of law or the proposal for relief. The ability to reject or change conclusions of law preserves a school board's authority and responsibility to interpret its policies. The board has the power to apply those policies to the examiners' findings and the undisputed evidence by rejecting or changing the examiner's conclusions of law or proposal for relief . . . .We emphasize, however, that while an independent factfinder decides the facts under subchapter F of the Education Code, the Board retains the authority to make the ultimate decision of whether the facts demonstrate that board policy was violated . . . Because school boards have "the exclusive power and duty to govern and oversee the management of the public schools of the district," TEX. EDUC. CODE ANN. 11.151(b), under the statutory scheme a school board must be the ultimate interpreter of its policy, subject to the limits established by the Legislature in its provisions for administrative and judicial review." (Id. at 564-65.) The court further explained: "A school board is entitled to adopt, reject, or change a hearing examiner's conclusions of law, and make the ultimate decision of whether to renew a particular contract, so long as the school board's decision is supported by substantial evidence and free from legal error. Thus, the label attached, "finding of fact" or "conclusion of law," is not determinative, the focus is on whether the issue determined is ultimately one of policy, and if so, whether a school board's decision is supported by substantial evidence and free of erroneous legal conclusions." Id. at 566. Upon reviewing the facts, the supreme court determined the school board's decision to terminate the teacher was not supported by substantial evidence. Id. at 566-67. The court thus affirmed the judgment of the court of appeals. Id. at 560.