S.B. No. 1017
AN ACT
relating to the ability of a county to sue and be sued.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 89.004, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) Except as provided by Subsection (c), a [A] person may
not file suit [sue] on a claim against a county or an elected or
appointed county official in the official's capacity as an
appointed or elected official unless the person has presented the
claim to the commissioners court and the commissioners court
neglects or refuses [has neglected or refused] to pay all or part of
the claim before the 60th day after the date of the presentation of
the claim.
(c) A person may file a suit for injunctive relief against a
county. After the court's ruling on the application for temporary
injunctive relief, any portion of the suit that seeks monetary
damages shall be abated until the claim is presented to the
commissioners court and the commissioners court neglects or refuses
to pay all or part of the claim by the 60th day after the date of the
presentation of the claim.
SECTION 2. Subchapter A, Chapter 262, Local Government
Code, is amended by adding Section 262.007 to read as follows:
Sec. 262.007. SUIT AGAINST COUNTY ARISING UNDER CERTAIN
CONTRACTS. (a) A county that is a party to a written contract for
engineering, architectural, or construction services or for goods
related to engineering, architectural, or construction services
may sue or be sued, plead or be impleaded, or defend or be defended
on a claim arising under the contract. A suit on the contract
brought by a county shall be brought in the name of the county. A
suit on the contract brought against a county shall identify the
county by name and must be brought in a state court in that county.
(b) The total amount of money recoverable from a county on a
claim for breach of the contract is limited to the following:
(1) the balance due and owed by the county under the
contract as it may have been amended, including any amount owed as
compensation for the increased cost to perform the work as a direct
result of owner-caused delays or acceleration;
(2) the amount owed for change orders or additional
work required to carry out the contract;
(3) reasonable and necessary attorney's fees that are
equitable and just; and
(4) interest as allowed by law.
(c) An award of damages under this section may not include:
(1) consequential damages, except as allowed under
Subsection (b)(1);
(2) exemplary damages; or
(3) damages for unabsorbed home office overhead.
(d) This section does not waive a defense or a limitation on
damages available to a party to a contract, other than a bar against
suit based on sovereign immunity.
(e) This section does not waive sovereign immunity to suit
in federal court.
SECTION 3. Chapter 89, Local Government Code, is amended by
adding Section 89.0041 to read as follows:
Sec. 89.0041. NOTICE OF SUIT AGAINST COUNTY. (a) A person
filing suit against a county or against a county official in the
official's capacity as a county official shall deliver written
notice to:
(1) the county judge; and
(2) the county or district attorney having
jurisdiction to defend the county in a civil suit.
(b) The written notice must be delivered by certified or
registered mail by the 30th business day after suit is filed and
contain:
(1) the style and cause number of the suit;
(2) the court in which the suit was filed; and
(3) the date on which the suit was filed.
(c) If a person does not give notice as required by this
section, the court in which the suit is pending shall dismiss the
suit on a motion for dismissal made by the county or the county
official.
SECTION 4. (a) This Act takes effect September 1, 2003.
(b) This Act applies only to a claim arising under a
contract executed on or after September 1, 2003. A claim that
arises under a contract executed before September 1, 2003, is
governed by the law as it existed on the date the contract is
executed, and the former law is continued in effect for that
purpose.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1017 passed the Senate on
April 23, 2003, by a viva-voce vote; and that the Senate concurred
in House amendments on May 29, 2003, by a viva-voce vote.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1017 passed the House, with
amendments, on May 25, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor