1. (a) If the agency asserts a counterclaim under the Government Code, Chapter 2260, notice of the counterclaim shall be filed as provided by this section.

2. (b) The notice of counterclaim shall:

   1. (1) be in writing;
   2. (2) be delivered by hand, certified mail return receipt requested or other verifiable delivery service to the contractor or representative of the contractor who signed the petition for contested case status; and

   3. (3) state in detail:

      1. (A) the nature of the counterclaim;
      2. (B) a description of damages or offsets sought, including the amount and method used to calculate those damages or offsets; and
      3. (C) the legal theory supporting the counterclaim.
3. (c) The agency may submit supporting documentation or other tangible evidence to facilitate the contractor's evaluation of the agency's counterclaim.
4. (d) The notice of counterclaim shall be delivered to the contractor no later than 90 days after the agency's receipt of the contractor's petition for contested case status.
5. (e) Nothing herein precludes the Board from initiating a lawsuit for damages against the contractor in a court of competent jurisdiction.

Source Note:The provisions of this §1.42 adopted to be effective February 26, 2004, 29 TexReg 1658.