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https://www.law.com/texaslawyer/2023/06/09/justices-disagree-as-texas-supreme-court-undercuts-municipal-immunity/

Texas Supreme Court Justices Boyd and Blacklock

Justices Disagree as Texas Supreme Court Undercuts Municipal Immunity

Justices James Blacklock and Jane Bland dissented.

June 09, 2023 at 03:37 PM

4 minute read

State and Local Government

Adolfo Pesquera

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What You Need to Know

The Texas Supreme Court revisited a government immunity issue involving a city's use of economic incentives to attract a company.
The plaintiff sued when League City refused to make good on a promised reimbursement of certain costs.
The court majority ruled the contract was proprietary in nature and the plaintiff can sue for damages.

Government immunity when entering economic development contracts with private parties was reduced in a split decision of the Texas Supreme Court.

The justices voted seven to two for the Houston area restaurant chain in City of League City v. Jimmy Changas Inc., a case closely watched by Texas municipalities, city attorneys and the restaurant industry.

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