Houston Must Face Pension System Suit, Texas Justices Say

Law360 (June 8, 2018, 5:29 PM EDT) -- The Texas Supreme Court ruled Friday that the city of Houston doesn't have immunity from the Houston Municipal Employees Pension System’s suit seeking to force the city to make contributions for certain employees who were transferred from its workforce to a nonprofit, partially reversing the lower court’s findings.

The high court said in its opinion that the pension system’s allegations could be brought against the city even though governmental immunity had not been waived.  The court ruled that the pension system's suit involved ultra vires conduct — which under Texas law can be an action taken without legal authority or a...

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