Use Of Middleman Blocks Contractor Claim, Texas Court Says

Law360, Dallas (June 21, 2013, 7:18 PM EDT) -- The Austin Court of Appeals on Thursday said a contractor who wasn’t paid by a state agency didn't have the right to sue because its contract was signed with an intermediary, but in a concurrence called the situation a “Catch-22” that may create results contrary to legislative intent.

A three-judge panel blocked information and technology contractor MRSW Management LLC from suing the North Central Texas Council of Governments, a regional planning commission, for payment, finding NCTCOG has governmental immunity despite a state law that waives immunity...
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