Narrative Opinion Summary
The Court of Appeals for the Thirteenth District of Texas affirmed the trial court's summary judgment in favor of the city against a contracting company, Hino Electric Holding Company, L.P. The dispute involved a master power sales agreement and its subsequent termination before the implementation of a proposed 'blend and extend' option for reduced electricity rates. Hino sought damages under the waiver of immunity provisions of Texas Local Government Code section 271.152, claiming specific performance, lost profits, and attorney's fees. The court held that governmental immunity was not waived under the relevant statutes, particularly section 271.153, which limits recoverable damages to amounts due under the contract and excludes consequential damages and lost profits. Hino's claims for attorney's fees failed due to the absence of a reference to section 271.159 in the contract. Furthermore, the court found that the City had validly terminated the contract, rendering Hino's specific performance claims moot. The trial court's judgments were upheld, including the denial of sanctions against Hino for a purportedly frivolous appeal. The decision underscores the strict application of statutory limitations on waiver of governmental immunity in contract disputes with municipal entities.
Legal Issues Addressed
Claims for Attorney's Fees and Legislative Waiversubscribe to see similar legal issues
Application: The court held that Hino could not claim attorney's fees due to the lack of a specific statutory waiver under section 271.159 in the contract.
Reasoning: Regarding attorney's fees, the City successfully argued that immunity was not waived since the contract did not reference section 271.159, which is necessary for such claims under the applicable law at the time.
Frivolous Appeals and Sanctionssubscribe to see similar legal issues
Application: The court chose not to impose sanctions against Hino for filing a frivolous appeal despite the City's request.
Reasoning: The City sought sanctions against Hino for filing a frivolous appeal, but the court opted not to impose sanctions.
Governmental Immunity and Recovery Limitations under Section 271.153subscribe to see similar legal issues
Application: The court affirmed that section 271.153 limits recoverable damages to the balance owed under the contract, change orders, and reasonable attorney's fees, explicitly excluding consequential and exemplary damages.
Reasoning: This statute limits recoverable damages to the balance owed under the contract, amounts for change orders, reasonable attorney's fees, and legally allowed interest, while excluding consequential damages, exemplary damages, and damages for unabsorbed home office overhead.
Summary Judgment and the De Novo Standard of Reviewsubscribe to see similar legal issues
Application: The court applied a de novo standard of review to determine that there were no genuine issues of material fact, justifying summary judgment in favor of the City.
Reasoning: The Court applied a de novo standard of review for the summary judgment, emphasizing that the moving party must show no genuine issue of material fact exists for judgment as a matter of law.
Termination of Contractual Optionssubscribe to see similar legal issues
Application: The court found that the City validly terminated the contract before the 'blend and extend' option began, thus negating Hino's claims for specific performance.
Reasoning: Hino's claim for specific performance is moot as the contract period has expired, and the trial court correctly granted summary judgment on this claim.
Waiver of Governmental Immunity under Local Government Code Section 271.152subscribe to see similar legal issues
Application: The court held that Hino's claims did not fall under the waiver provisions of section 271.152, as the contract did not explicitly allow for the damages sought.
Reasoning: Hino contends that its damages fall under the waiver of immunity provisions in section 271.152 of the local government code. The City argues that section 271.153 prohibits all of Hino's damage claims.