Immunity Bars Rail Project Overrun Claim, Texas Court Told

Law360, New York (October 8, 2013, 5:35 PM EDT) -- The architect and designer of a Dallas light-rail expansion project whose contractor incurred cost overruns told the Texas Supreme Court on Tuesday that it cannot be held liable for the contractor’s economic losses because it has derivative sovereign immunity from such suits.

In oral arguments before Texas’ high court, design joint venture LAN/STV is seeking to have overturned a state appellate court’s decision affirming the company’s liability for part of a jury’s $5 million judgment awarded to contractor Martin K. Eby Construction Co. Inc. for cost...
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