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353 S.W.3d 528
Tex. App.
2011
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Background

  • 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  • City accepted Solis's bid in April 2006 but rescinded the award in May 2006 for Solis's failure to obtain required bonds.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)
Read the full case

Case Details

Case Name: Solis v. City of Laredo
Court Name: Court of Appeals of Texas
Date Published: Sep 21, 2011
Citations: 353 S.W.3d 528; 2011 WL 4383659; 2011 Tex. App. LEXIS 7614; 04-10-00751-CV
Docket Number: 04-10-00751-CV
Court Abbreviation: Tex. App.
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