74R13525 DLF-D By Harris S.C.R. No. 41 Substitute the following for S.C.R. No. 41: By Zbranek C.S.S.C.R. No. 41 SENATE CONCURRENT RESOLUTION 1-1 WHEREAS, Tenneco Power Generation Company alleges that: 1-2 (1) on or about September 27, 1993, it entered into a 1-3 contract with the board of regents of The Texas A&M University 1-4 System; 1-5 (2) under the contract, it was to develop and operate 1-6 a cogeneration facility to supply Texas A&M University with 1-7 electrical energy and capacity, steam, hot water, and chilled 1-8 water; 1-9 (3) it worked in good faith to comply with all terms 1-10 of the contract as construction on the facility progressed under 1-11 the timeline prescribed by The Texas A&M University System; 1-12 (4) The Texas A&M University System failed to use 1-13 reasonable efforts to fulfill the conditions and duties imposed on 1-14 the system by the contract; 1-15 (5) The Texas A&M University System notified Tenneco 1-16 Power Generation Company that it had unilaterally decided to 1-17 abrogate and rescind the contract despite the fact that Tenneco 1-18 Power Generation Company had complied with all conditions of the 1-19 agreement and was working toward completion; and 1-20 (6) Tenneco Power Generation Company is entitled to 1-21 damages due to the breach of contract by The Texas A&M University 1-22 System; now, therefore, be it 1-23 RESOLVED by the Legislature of the State of Texas, That 1-24 Tenneco Power Generation Company is granted permission to sue the 2-1 State of Texas and the chancellor of The Texas A&M University 2-2 System subject to Chapter 107, Civil Practice and Remedies Code; 2-3 and, be it further 2-4 RESOLVED, That the suit authorized by this resolution shall 2-5 be brought in Brazos County, except that if the contract that is 2-6 the subject of the suit requires that the suit be brought in 2-7 another county, the suit may be brought in that county; and, be it 2-8 further 2-9 RESOLVED, That the total of all damages awarded in the suit 2-10 authorized by this resolution, including any court costs, 2-11 attorney's fees, and prejudgment interest awarded under law, may 2-12 not exceed $37 million, that Tenneco Power Generation Company may 2-13 not plead an amount in excess of that amount in a suit authorized 2-14 by this resolution, and that this is the total amount that may be 2-15 recovered with respect to the contract that is the subject of this 2-16 resolution in all actions brought with respect to that contract; 2-17 and, be it further 2-18 RESOLVED, That payment of any damages awarded in a suit 2-19 authorized by this section from the state treasury is subject to 2-20 appropriation; and, be it further 2-21 RESOLVED, That it is the intent of the 74th Legislature of 2-22 the State of Texas that, if any damages are awarded in a suit 2-23 authorized by this resolution, the damages be paid from money 2-24 appropriated to or otherwise available to The Texas A&M University 2-25 System and that additional money should not be appropriated for the 2-26 purpose of paying these damages; and, be it further 2-27 RESOLVED, That the remedies available to Tenneco Power 3-1 Generation Company in the suit authorized by this resolution are 3-2 limited to the remedies traditionally available for breach of 3-3 contract, except that Tenneco Power Generation Company may not 3-4 recover consequential damages resulting from any breach of 3-5 contract, and that this resolution does not authorize suit on any 3-6 claim that sounds in tort; and, be it further 3-7 RESOLVED, That Tenneco Power Generation Company and The Texas 3-8 A&M University System may agree to submit the matter that is the 3-9 subject of this resolution to binding arbitration; and, be it 3-10 further 3-11 RESOLVED, That the provisions of this resolution are not 3-12 severable, and if any provision of this resolution is finally held 3-13 to be invalid by a court of competent jurisdiction, the remaining 3-14 provisions are also invalid and this resolution has no force or 3-15 effect and no suit is authorized by this resolution; and, be it 3-16 further 3-17 RESOLVED, That the chancellor of The Texas A&M University 3-18 System be served process as provided by Section 107.002(a)(3), 3-19 Civil Practice and Remedies Code.