San Antonio Can Pursue $1B Suit Over Water Contract

Law360, New York (August 1, 2011, 7:40 PM EDT) -- A Texas appeals court ruled Friday that San Antonio Water System could proceed with a suit seeking more than $1 billion from the Lower Colorado River Authority for its alleged backpedaling on a water production contract.

A three-judge panel for the Texas Court of Appeals, Third District, ruled that the LCRA had waived sovereign immunity in the suit by entering into the contract with the city of San Antonio.

Under the contract, San Antonio agreed to fund improvements to increase the Colorado River’s usable water in...
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