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Court Rules that Tex-Mex Chain Can Sue City Over Development Incentives

February 24, 2021

Client of Steven Knight, Larry Carbo, and Kellen Scott can Sue City over Development Incentives

A Texas appellate panel recently ruled in favor of a Chamberlain Hrdlicka client finding that immunity can't shield a city from a breach of contract suit because entering the deal was a proprietary function, not a governmental one. A three-member panel of justices from the Fourteenth Court of Appeals agreed with the trial court and explained that when League City inked the deal to bring Jimmy Changas’ restaurant to town, it was "primarily intended to benefit the city" rather than the general public.

The company is represented by Chamberlain Hrdlicka’s Steven Knight, Larry Carbo, and Kellen Scott, as well as Alfred Flores Jr. of The Flores Law Group.

Subscribers to Law360 can read an article about the ruling here.