Sovereign Immunity Flashcards
C.P.R.C. §114 – Breach of contract claims over $250,000 against State Agencies
Sovereign immunity of state agencies has been statutorily waived for the breach of a written contract for engineering, architectural, or construction services or for materials related to such services if the amount in controversy exceeds
$250,000 (exclusive of penalties, costs, expenses, prejudgment interest and attorneys’ fees).
What are the state agencies under CPRC 114?
The statutory definition of state agency specifically includes universities and systems of higher education but excludes counties, municipalities, and other political subdivisions of the state.
CPRC 114 Award limitations
Awards under this waiver of sovereign immunity statute are limited to (1) the amount due under the contract, including any amount owed as compensation for the increased cost to perform the work as a direct result of owner‐caused delays or acceleration if the contract expressly provides for that compensation; (2) the amount owed for written change orders; (3) reasonable and necessary attorneys’ fees if the contract expressly provides that recovery of attorneys’ fees is available to all parties to the contract; and (4) interest at the rate specified by the contract or, if a rate is not specified, the statutory post‐ judgment interest rate, not to exceed 10%.
Texas Local Government Code Chapter 262 (Waiver for Claims Against Counties)
The bar of governmental immunity for Texas counties was removed by Chapter 262 for claims arising out of a written contract for engineering, architectural, or construction services or for goods.
TX Local Gov. Code 262 damage limitation–Counties
A claimant in a breach of contract action against a county must file the suit in state court in that country and is limited to the following recovery:
(1) the balance due and owed by the county under the contract, as amended, including any amount owed as compensation for the increased cost to perform the work as a direct result of owner‐ caused delays or acceleration;
(2) the amount owed for change orders or additional work required to carry out the contract;
(3) reasonable and necessary attorneys’ fees that are equitable and just; and
(4) interest as allowed by law.
An award of damages may not include any other consequential damages, exemplary damages, or damages for unabsorbed home office overhead.
Texas Local Government Code 271 for local entities
provides a waiver for claims against various local governmental entities. The statute specifically applies to municipalities, public school districts, junior college districts, and special purpose districts or authorities (i.e. water improvement districts, navigation and public health districts, and river authorities).
Chapter 2260 of Texas Government Code
As to the State of Texas itself, and entities that are in any branch of state government and that are created by the constitution or a statute, “waivers” of sovereign immunity are addressed in Chapter 2260 of the Texas Government Code.64 Section
2260.005 provides that “[s]ubject to Section 2260.007
Waiver of Immunity does not apply to Sale of Property
Contracts involving the sale of real estate, even if they involve ancillary services, are generally not covered by the limited waiver of immunity in Section 271.152.
No Waiver for Equitable Claims
Claims based on equitable theories, such as quantum meruit and promissoryestoppel, are generally not covered by the limited waiver of immunity in Section 271.152.
