San Antonio, TX 78204
P.O. Box 839966
San Antonio, TX 78283
Published on Friday, March 15, 2019
CONTACT: Thea Setterbo, 210-207-7349
SAN ANTONIO (March 15, 2019) — The Texas Supreme Court today issued a narrow and technical ruling addressing a contract issue related to the Hays Street Bridge restoration project. The Court’s decision confirmed that Texas cities still have immunity protection from claims for monetary damages related to governmental contracts, but claims seeking specific performance of contractual terms can be considered against a city. The City applied proceeds from the sale of the property adjacent to the Hays Street Bridge to the budget for the restoration of the bridge, which the City contends fulfills the 2014 judgment of the district court, and any requirement of specific performance.
The ruling does not impact current or future development in the area. The Texas Supreme Court sent the case back to the Fourth Court of Appeals for consideration of several other issues raised by the City in the appeal.
In 2012, The Hays Street Bridge Restoration Group sued the City, alleging property located at 803 N. Cherry that was donated to the City was held as park land and that the City had violated state law and a Memorandum of Understanding (MOU) by selling the property to Alamo Beer Company. In 2014, a Bexar County jury found that the property was not held as a park, but that any proceeds from the sale of the property should be applied to the City’s budget for restoration of the bridge, which the City later did. On appeal, the Fourth Court of Appeals held that the City could not be forced to take a specific action under a contract due to immunity protection granted to Texas cities. The Texas Supreme Court ruled today to clarify the immunity issue. The decision has no effect on the sale of the property.
Author: Melanie Morales (GPA)
Categories: City News