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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of attorney's fees in an action for breach |
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of contract involving certain local governmental entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.153(a), Local Government Code, is |
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amended to read as follows: |
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(a) The total amount of money awarded in an adjudication |
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brought against a local governmental entity for breach of a |
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contract subject to this subchapter is limited to the following: |
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(1) the balance due and owed by the local governmental |
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entity under the contract as it may have been amended, including any |
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amount owed as compensation for the increased cost to perform the |
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work as a direct result of owner-caused delays or acceleration; |
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(2) the amount owed for change orders or additional |
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work the contractor is directed to perform by a local governmental |
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entity in connection with the contract; [and] |
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(3) reasonable and necessary attorney's fees that are |
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equitable and just; and |
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(4) interest as allowed by law. |
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SECTION 2. Section 271.159, Local Government Code, is |
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repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to a claim that arises under a contract executed on or after the |
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effective date of this Act. A claim that arises under a contract |
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executed before the effective date of this Act is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2009. |