353 S.W.3d 528
Tex. App.2011Background
- Solis bid on a City public works project with a 5% bid bond naming Acstar Insurance as surety.
- City accepted Solis's bid in April 2006 but rescinded the award in May 2006 for Solis's failure to obtain required bonds.
- City demanded payment on the bid bond of $80,396.95 after rescinding the award.
- City sued Solis and Acstar in 2006 for bond payment; Solis later dropped counterclaims.
- In 2009 Solis filed a separate lawsuit against the City asserting contract and tort claims; the trial court granted the City’s plea to the jurisdiction.
- The issues focus on whether the City’s immunity was waived via Reata or §271.152 contract theory; and whether immunity remained from the underlying claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver under Reata applicability | Solis argues City waived immunity by asserting affirmative relief in the prior suit. | City contends Reata applies only if there were pending affirmative claims; here there were none in the underlying suit. | Waiver not established under Reata; immunity preserved. |
| Whether a contract existed to trigger §271.152 waiver | Notice of Award plus Solis's bid form constituted a contract. | No contract formed because City never executed a contract; Solis forfeited before signing. | No contract; immunity not waived under §271.152. |
| Scope of immunity in the underlying suit | Immunity should be waived or offset due to breach/intentional tort claims. | Immunity remains since there was no valid waiver. | City retained immunity; trial court's plea to jurisdiction affirmed. |
Key Cases Cited
- Reata Const. Corp. v. City of Dallas, 197 S.W.3d 371 (Tex. 2006) (limits waiver when government asserts monetary relief in the same case)
- City of Houston v. Williams, 353 S.W.3d 128 (Tex. 2011) (defines contract elements for §271.152 waiver; multiple documents may constitute a written contract)
- Foreca, S.A. v. GRD Dev. Co., 758 S.W.2d 744 (Tex. 1988) (intent to be bound is determinative; contract may be embodied in multiple writings)
- Scott v. Ingle Pac., Inc., 489 S.W.2d 554 (Tex. 1972) (informal agreements may form binding contracts under certain circumstances)
- Fort Worth Indep. Sch. Dist. v. City of Fort Worth, 22 S.W.3d 831 (Tex. 2000) (multiple documents may constitute a written contract for waiver purposes)
