Appeals Court Reverses, Remands After Finding Contract With Government Entity Enforceable

Determining Validity of Contract for Goods or Services

The case began when the Plaintiff, a developer, entered into a contract with Defendant, Roman Forest Public Utility District No. 4, a local government entity, for the sale of land and provision of services. After Plaintiff had begun performing and had expended a large amount of funds, Defendant claimed the contract was invalid and refused to move forward.

Plaintiff sued, claiming the contract was valid and enforceable. Defendant filed a plea to the jurisdiction asserting governmental immunity, which was granted by the trial court. Plaintiff then filed an interlocutory appeal. The Ninth Court of Appeals reviewed the contract as well as the facts provided by the Plaintiff demonstrating that the contract was not only for purchase of land but also for services, and that Plaintiff had begun performing under the contract, to determine that the contract was enforceable under Texas Local Government Code § 271.151.

The appellate court reversed the trial court’s order, holding that the contract was a contract for goods or services, and remanded the case back to the trial court to review Plaintiff’s claims. The Plaintiff’s claims against the District include breach of contract, a related claim for specific performance, and a constitutional claim for violation of due process, among others.