City of Denton v. Rushing

In this interlocutory appeal from an order denying a city’s plea to the jurisdiction and alternative motion for summary judgment, the Supreme Court reversed the judgment of the court of appeals and rendered judgment sustaining the city’s jurisdictional plea, holding that Tex. Loc. Gov’t Code 271.152, which waives a city’s immunity from suit on certain contracts, did not apply to the underlying claims.Section 271.152 provides that a governmental entity that is authorized to contract and that enters into a contract waives its immunity to suit for purposes of adjudicating a claim under the contract. In the instant case, Plaintiffs, employees of the City of Denton, sued the City for breach of contract, alleging that the City’s policies and procedures manual (the policy) constituted a unilateral contract that the City breached. The trial court denied the City’s jurisdictional plea. The court of appeals affirmed, ruling that the policy created a unilateral contract that certain employees could enforce under the statutory waiver. The Supreme Court reversed, holding that the policy did not create an enforceable, written contract, a requirement for governmental to be waived under section 271.152. View "City of Denton v. Rushing" on Justia Law