SRC-AXB, PNG S.C.R. 24 76(R)   BILL ANALYSIS


Senate Research Center   S.C.R. 24
76R3366 MDR-DBy: Carona
Jurisprudence
2/19/1999
As Filed


DIGEST 

DalMac Construction Company, Inc. (DalMac) was awarded a contract to build
a recreational sports building by Texas A&M University (A&M) on February
13, 1993.  Almost immediately after work began, DalMac discovered that it
was impossible to construct the building from A&M's plans and
specifications, which required DalMac to make numerous changes at its own
expense.  Despite faulty plans, and A&M's insistence upon performance that
exceeded initial contractual requirements, DalMac fully satisfied its
contractual obligations, and A&M accepted DalMac's complete performance. 

About one month before the building was completed, DalMac submitted the
first of many requests for equitable adjustment to A&M authorities.  After
three rejections, DalMac and A&M submitted their dispute to a non-binding
alternative dispute resolution process, whose decision on March 25, 1997,
addressed only three of the issues in dispute because A&M was unwilling to
arbitrate the remaining issues.  On April 14, 1997, A&M offered a $19,000
settlement on DalMac's $2.4 million claim.  Subsequently, DalMac was
allowed only 45 minutes to appeal its claim.  On July 30, 1997, A&M offered
$204,461 as its final offer on DalMac's claim, which now exceeded $3
million.    

Finally, DalMac sought relief through the courts, but was once again denied
due to A&M's claim of sovereign immunity.  A&M has failed to pay DalMac
construction costs and expenses incurred as a result of A&M's own mistakes.
Therefore, DalMac must now seek permission from the legislature to sue the
State of Texas and A&M for actual and monetary damages, including court
costs and attorney's fees.  S.C.R. 24 would grant DalMac permission to sue
the State of Texas and Texas A&M University. 

PURPOSE

As proposed, S.C.R. 24 submits the following resolutions:

 That DalMac Construction Company, Inc. is granted permission to sue the
State of Texas  and Texas A&M University subject to Chapter 107, Civil
Practice and Remedies Code. 

 That the president of Texas A&M University be served process as provided
by Section  107.002(a)(3), Civil Practice and Remedies Code.