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Click here for the full text of this decision FACTS:In his suit, John Nunn asserted that the county breached its written contract with him under which he provided consulting services for the county. The parties originally executed the contract on Oct. 1, 2002. The contract contained a provision for automatic renewal unless it was cancelled in writing 30 days prior to the beginning of the county’s fiscal year on Oct. 1. The contract required the county to pay Nunn approximately $42,500 per annum. During the first year of the contract, the county paid the sum required by the contract. In a letter dated Sept. 2, 2003, the county judge advised Nunn that the county would be reviewing the emergency telephone program in its budget process, and that “it is possible the personal services contract with you will not be renewed for Fiscal Year 2004. This letter will suffice as the 30 day notice of termination if that proves to be the case.” Subsequently, the county did not budget the funds to pay for Nunn’s consulting services. Nunn demanded payment under his written contract with the county on Oct. 16, 2003. Nunn filed suit on Oct. 31, 2005, naming as defendants San Jacinto County and San Jacinto County Commissioners Court. Nunn sought to recover payments allegedly owed to him for the period Oct. 1, 2003, through Oct. 1, 2006. Nunn contends that the county’s letter dated Sept. 2, 2003, did not terminate his contract and that his contract automatically renewed annually. San Jacinto County answered, contending that the trial court had no subject matter jurisdiction. Also, the county pled that it paid Nunn for the first year and that the contract’s automatic renewal provision was illegal because a county cannot obligate itself for debts beyond one budget year. The county asserted no claims for affirmative relief. Subsequently, the county moved for summary judgment and asserted that its sovereign immunity prohibited the trial court’s exercise of subject matter jurisdiction over Nunn’s suit. After the trial court denied the county’s motion for summary judgment, the county appealed. On appeal, Nunn asserted that the court lacked jurisdiction over the appeal from the interlocutory order and that the county waived its sovereign immunity under �262.007 of the Texas Local Government Code. HOLDING:Reversed and rendered. First, the court found that while generally a party may appeal only a final judgment or order, �51.014(a)(8) of the Texas Civil Practice & Remedies Code allows an interlocutory appeal from an order that “grants or denies a plea to the jurisdiction by a governmental unit,” including a county. The court found that the contract preceded the adoption of �262.007 and did not accept Nunn’s argument that the statute’s renewal date became the new adoption date of the contract. The court stated it did not believe the Legislature “clearly and unambiguously intended a general waiver of a county’s governmental immunity in situations where a contract is renewed, rather than executed after the effective date of section 262.007.” The court stated that the pleadings before the trial court failed to demonstrate that the county waived its immunity from Nunn’s suit. It held the trial court erred in failing to dismiss Nunn’s suit. It reversed the trial court and rendered judgment dismissing Nunn’s claims because the trial court lacked subject matter jurisdiction. OPINION:Horton, J.; McKeithen, C.J., and Gaultney and Horton, J.J.

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