Texas City Can't Escape Suit Over Wholesale Power Sales

Law360, Dallas (August 26, 2013, 5:14 PM EDT) -- A Texas appeals court on Friday gave the Lower Colorado River Authority the green light to pursue claims the city of Georgetown breached its wholesale power agreement with the utility, rejecting the city’s argument that it is protected by immunity.

In a 2-1 ruling, a panel of the Texas Court of Appeals found a distinction between proprietary functions and governmental functions applies to contract-based claims against cities and other municipalities, just as the distinction exists for tort claims, and said because Georgetown was acting as a...
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