S.C.R. No. 53 SENATE CONCURRENT RESOLUTION 1-1 WHEREAS, John R. Phenix & Associates, Inc., alleges that: 1-2 (1) it was promised the award of a contract for the design 1-3 of an athletic training facility on the University of Houston 1-4 campus; 1-5 (2) as a condition of the award of the contract, it deferred 1-6 billing for the preparation of conceptual drawings and schematics 1-7 that were to be used to raise funds for the facility; 1-8 (3) it prepared conceptual drawings and schematics and 1-9 several subsequent redesigns of the structure at a cost of over 1-10 $80,000 in professional fees; 1-11 (4) the university originally awarded it the contract; 1-12 (5) at the instigation of a university employee, the 1-13 university reneged on the contract and awarded it to another 1-14 architectural firm; 1-15 (6) the contract was awarded to the other firm on the basis 1-16 of a previous relationship with the university employee, rather 1-17 than on the firm's abilities; and 1-18 (7) the university's wrongful breach of contract has cost 1-19 John R. Phenix & Associates, Inc., a loss of over $80,000 in 1-20 professional fees; now, therefore, be it 1-21 RESOLVED by the Legislature of the State of Texas, That John 1-22 R. Phenix & Associates, Inc., is granted permission to sue the 1-23 State of Texas and the University of Houston System subject to 1-24 Chapter 107, Civil Practice and Remedies Code; and, be it further 2-1 RESOLVED, That the suit authorized by this resolution shall 2-2 be brought in Harris County, except that if the contract that is 2-3 the subject of the suit requires that the suit be brought in 2-4 another county, the suit may be brought in that county; and, be it 2-5 further 2-6 RESOLVED, That the total of all damages awarded in the suit 2-7 authorized by this resolution, including any court costs, 2-8 attorney's fees, and prejudgment interest awarded under law, may 2-9 not exceed $100,000, that John R. Phenix & Associates, Inc., may 2-10 not plead an amount in excess of that amount in a suit authorized 2-11 by this resolution, and that this is the total amount that may be 2-12 recovered with respect to the contract that is the subject of this 2-13 resolution in all actions brought with respect to that contract; 2-14 and, be it further 2-15 RESOLVED, That payment of any damages awarded in a suit 2-16 authorized by this section from the state treasury is subject to 2-17 appropriation; and, be it further 2-18 RESOLVED, That it is the intent of the 74th Legislature of 2-19 the State of Texas that, if any damages are awarded in a suit 2-20 authorized by this resolution, the damages be paid from money 2-21 appropriated to or otherwise available to the University of Houston 2-22 System and that additional money should not be appropriated for the 2-23 purpose of paying these damages; and, be it further 2-24 RESOLVED, That the remedies available to John R. Phenix & 2-25 Associates, Inc., in the suit authorized by this resolution are 2-26 limited to the remedies traditionally available for breach of 2-27 contract, except that John R. Phenix & Associates, Inc., may not 3-1 recover consequential damages resulting from any breach of 3-2 contract, and that this resolution does not authorize suit on any 3-3 claim that sounds in tort; and, be it further 3-4 RESOLVED, That John R. Phenix & Associates, Inc., and the 3-5 University of Houston System may agree to submit the matter that is 3-6 the subject of this resolution to binding arbitration; and, be it 3-7 further 3-8 RESOLVED, That the provisions of this resolution are not 3-9 severable, and if any provision of this resolution is finally held 3-10 to be invalid by a court of competent jurisdiction, the remaining 3-11 provisions are also invalid and this resolution has no force or 3-12 effect and no suit is authorized by this resolution; and, be it 3-13 further 3-14 RESOLVED, That the chancellor or vice-chancellor of the 3-15 University of Houston System be served process as provided by 3-16 Subdivision (3), Subsection (a), Section 107.002, Civil Practice 3-17 and Remedies Code.