S.C.R. No. 52 SENATE CONCURRENT RESOLUTION 1-1 WHEREAS, CW Systems, Inc., alleges that: 1-2 (1) on or about April 24, 1991, CW Systems, Inc., a software 1-3 development business, entered into a formal contract with the 1-4 University of Houston System to convert and install The University 1-5 of Texas System payroll program onto the University of Houston 1-6 System DEC VAX computers; 1-7 (2) the conversion was to be completed on or about August 1-8 31, 1991, but by agreement the University of Houston System 1-9 extended the deadline to December 31, 1991, so that requested 1-10 changes could be made; 1-11 (3) before the completion of the payroll project, The 1-12 University of Texas System substantially upgraded and improved its 1-13 payroll system; 1-14 (4) the University of Houston System, through its 1-15 consultant, instructed CW Systems, Inc., to cease converting the 1-16 old payroll program and install the new payroll program; 1-17 (5) CW Systems, Inc., made the requested changes and 1-18 converted the new payroll program onto the University of Houston 1-19 System computers; and 1-20 (6) the University of Houston System has wrongfully withheld 1-21 payment, and CW Systems, Inc., is entitled to damages because of 1-22 the delays and additional costs incurred in performing the 1-23 additional work; now, therefore, be it 1-24 RESOLVED by the Legislature of the State of Texas, That CW 2-1 Systems, Inc., is granted permission to sue the State of Texas and 2-2 the University of Houston System subject to Chapter 107, Civil 2-3 Practice and Remedies Code; and, be it further 2-4 RESOLVED, That the suit authorized by this resolution shall 2-5 be brought in Harris 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 $1 million, that CW Systems, Inc., may not plead an 2-13 amount in excess of that amount in a suit authorized by this 2-14 resolution, and that this is the total amount that may be recovered 2-15 with respect to the contract that is the subject of this resolution 2-16 in all actions brought with respect to that contract; and, be it 2-17 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 University of Houston 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 CW Systems, Inc., in 3-1 the suit authorized by this resolution are limited to the remedies 3-2 traditionally available for breach of contract, except that CW 3-3 Systems, Inc., may not recover consequential damages resulting from 3-4 any breach of contract, and that this resolution does not authorize 3-5 suit on any claim that sounds in tort; and, be it further 3-6 RESOLVED, That CW Systems, Inc., and the University of 3-7 Houston System may agree to submit the matter that is the subject 3-8 of this resolution to binding arbitration; and, be it further 3-9 RESOLVED, That the provisions of this resolution are not 3-10 severable, and if any provision of this resolution is finally held 3-11 to be invalid by a court of competent jurisdiction, the remaining 3-12 provisions are also invalid and this resolution has no force or 3-13 effect and no suit is authorized by this resolution; and, be it 3-14 further 3-15 RESOLVED, That the chancellor of the University of Houston 3-16 System be served process as provided by Subdivision (3), Subsection 3-17 (a), Section 107.002, Civil Practice and Remedies Code.