From: <Saved by Windows Internet Explorer 7>
Subject: Texas Judiciary Online - HTML Opinion
Date: Sat, 18 Aug 2007 18:12:37 -0500
MIME-Version: 1.0
Content-Type: multipart/related;
	type="text/html";
	boundary="----=_NextPart_000_0046_01C7E1C3.5BC8FF40"
X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3138

This is a multi-part message in MIME format.

------=_NextPart_000_0046_01C7E1C3.5BC8FF40
Content-Type: text/html;
	charset="Windows-1252"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?OpinionId=84590

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD><TITLE>Texas Judiciary Online - HTML Opinion</TITLE>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Dwindows-1252">
<SCRIPT language=3DJavaScript><!--
function openWindow(windowName, urlLoc, w, h, top, left) {=20
	windowName =3D window.open("",windowName, =
'scrollbars=3Dyes,status=3Dno,width=3D' + w + ',height=3D' + h + =
',menubar=3Dno,resizable=3Dno,top=3D' + top + ',left=3D' + left + =
',screenX=3D0,screenY=3D0');
	windowName.location.href =3D urlLoc;
	windowName.focus();
	if (windowName.opener =3D=3D null) windowName.opener =3D self;
}
//--></SCRIPT>
<LINK =
href=3D"http://www.1stcoa.courts.state.tx.us/resource/includes/oca.css"=20
type=3Dtext/css rel=3Dstylesheet>
<META content=3D"MSHTML 6.00.6000.16481" name=3DGENERATOR></HEAD>
<BODY text=3D#000000 vLink=3D#551a8b aLink=3D#ff0000 link=3D#0000ff =
bgColor=3Dwhite=20
leftMargin=3D0 topMargin=3D0 marginwidth=3D"0" =
marginheight=3D"0"><!--MAIN Content Table Begin-->
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
Online: First Court of Appeals&amp;body=3DThis opinion is from the Texas =
First Court of Appeals web site.  =
http://www.1stcoa.courts.state.tx.us/opinions/HTMLOpinion.asp?OpinionID=3D=
84590"><IMG=20
      =
src=3D"http://www.1stcoa.courts.state.tx.us/resource/opinions/images/icoE=
Mail.gif"=20
      align=3DabsMiddle border=3D0> Send this document to a=20
      colleague</A>&nbsp;&nbsp;&nbsp; </TD>
    <TD class=3DtextSmall align=3Dright><!--		Close This Window<a =
href=3D"javascript:window.close()"><img =
SRC=3D"../resource/images/icons/close.gif" WIDTH=3D"16" HEIGHT=3D"16" =
BORDER=3D"0" ALIGN=3D"absmiddle" HSPACE=3D"3"></a-->Close=20
      This Window<A onclick=3Dwindow.close()=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84590#"><IMG=20
      height=3D16 hspace=3D3 src=3D"" width=3D16 align=3DabsMiddle =
border=3D0></A> </TD></TR>
  <TR>
    <TD class=3DTextJustify colSpan=3D2>
      <HR>
      <BR><BR>
      <META content=3DWordPerfect name=3DGenerator>
      <P><SPAN style=3D"FONT-SIZE: 11pt"></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>Opinion issued August 2,=20
      2007</STRONG></SPAN><SPAN style=3D"FONT-SIZE: 11pt"></SPAN></P><BR =

      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 11pt"><IMG =
height=3D115 src=3D""=20
      width=3D115> </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>In=20
      The</STRONG></SPAN><SPAN style=3D"FONT-SIZE: 18pt"></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>Court of=20
      Appeals</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>For=20
      The</STRONG></SPAN><SPAN style=3D"FONT-SIZE: 18pt"></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>First=20
      District of Texas</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd BT">
      <HR align=3Dcenter width=3D"15%">
      </SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>NO. =
01-07-00133-CV</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR align=3Dcenter width=3D"15%">
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>CITY OF =
PASADENA,=20
      Appellant</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>V.</STRONG></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: =
14pt"><STRONG>CROUCH/KST=20
      ENTERPRISES, LTD., ENVIRONMENTAL INFRASTRUCTURE GROUP, L.P., =
KINSEL=20
      INDUSTRIES, INC., AND TRAVELERS CASUALTY AND SURETY COMPANY OF =
AMERICA,=20
      Appellees</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>On =
Appeal from the=20
      151st District Court</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Harris =
County,=20
      Texas</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Trial =
Court Cause=20
      No. 2004-11908</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: =
14pt"><STRONG>MEMORANDUM=20
      OPINION</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">This interlocutory appeal =
arises from the=20
      trial court's order denying the City of Pasadena's ("the City's") =
plea to=20
      the jurisdiction filed in response to a breach of contract suit. =
In its=20
      sole issue, the City contends that the trial court erred in =
denying its=20
      plea because the City had not waived its immunity from suit with =
respect=20
      to appellee, Crouch/KST Enterprises, Ltd. ("Crouch"). We reverse =
the trial=20
      court's order, as to Crouch's claims only, and we render judgment=20
      dismissing Crouch's claims against the City for want of =
jurisdiction.=20
      <STRONG>Background</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">In the summer of 2000, the City =
entered=20
      into a contract ("the Prime Contract") with Kinsel Industries, =
Inc.=20
      ("Kinsel"), whereby Kinsel agreed to furnish the labor, materials, =
and=20
      equipment necessary for the City's construction of a wastewater =
treatment=20
      plant. Shortly thereafter, Kinsel entered into a subcontract =
agreement=20
      ("the Subcontract") with Crouch for the performance of certain =
electrical=20
      work related to the construction of the wastewater treatment =
plant.=20
      According to Crouch's pleadings, the Subcontract documents =
consisted of=20
      the agreement between Crouch and Kinsel, the Prime Contract, and =
the=20
      conditions of the Prime Contract. The City was not a party to the=20
      Subcontract.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Crouch's pleadings further =
allege that,=20
      during the course of its performance under the Subcontract, it =
encountered=20
      numerous delays as a result of Kinsel's failure to properly =
schedule the=20
      other subcontractors working on the wastewater treatment plant. =
Crouch=20
      initiated the instant lawsuit seeking, in part, recovery of the =
expenses=20
      incurred as a result of the delay from Kinsel, its agent or =
successor,=20
      Environmental Infrastructure Group, L.P. ("EIG"), and its bonding =
company,=20
      Travelers Casualty Surety Company of America ("Travelers"). =
Kinsel, in=20
      turn, filed a motion for leave to designate the City as a =
Responsible=20
      Third Party, asserting that the unanticipated increase in the cost =

      suffered by it and its subcontractors was a result of the delay =
caused by=20
      the actions and omissions of the City. Thereafter, Crouch amended =
its=20
      pleadings to assert a breach of contract claim against the City;=20
      specifically, Crouch argued that it was a third-party beneficiary =
to the=20
      Prime Contract and sought damages for the City's breach of that =
contract.=20
      <STRONG></STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG></STRONG>The City =
responded by=20
      filing a plea to dismiss the suit for lack of jurisdiction on the =
grounds=20
      that neither Kinsel nor Crouch were able to establish a waiver of=20
      governmental immunity for breach of contract claims under the =
Local=20
      Government Code. The trial court denied the City's plea, and the =
City=20
      filed this interlocutory appeal, complaining of the denial only as =
to=20
      Crouch's claims.<STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Plea to =
the=20
      Jurisdiction</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">In its sole issue, the City =
argues that=20
      the trial court erred in denying its plea to </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">the jurisdiction because the =
City did not=20
      waive its immunity from suit. Specifically, the City argues that =
there was=20
      no waiver of governmental immunity because (1) the statutory =
waiver=20
      provided for in section 271.152 of the Local Government Code =
cannot be=20
      invoked by a third-party beneficiary to a contract and, (2) even =
if it=20
      could be invoked by a third-party beneficiary, Crouch is not a =
third-party=20
      beneficiary as a matter of law.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84590#N_1_"><SUP>=20
      (1)</SUP></A> We hold that, because Crouch is not a third-party=20
      beneficiary to the Prime Contract, the trial court erred in =
denying the=20
      City's plea to the jurisdiction. <STRONG></STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt"><STRONG>Standard of=20
      Review</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt"><STRONG></STRONG>A plea to the=20
      jurisdiction is a dilatory plea challenging a trial court's =
authority to=20
      determine the subject matter of the cause of action without =
defeating the=20
      merits of the case. <EM>City of Houston v. Northwood Mun. Util. =
Dist. No.=20
      1</EM>, 73 S.W.3d 304, 308 (Tex. App.--Houston [1st Dist.] 2001, =
pet.=20
      denied) (citing <EM>Bland Indep. Sch. Dist. v. Blue</EM>, 34 =
S.W.3d 547,=20
      554 (Tex. 2000)). While the underlying claims may form the context =
in=20
      which a plea to the jurisdiction is raised, the purpose of the =
plea is not=20
      to preview or delve into the merits of the case, but to establish =
the=20
      reason why the merits of the underlying claims should never be =
reached.=20
      <EM>Id. </EM>This does not mean that evidence cannot be offered on =
a=20
      dilatory plea; on the contrary, the issues raised by a dilatory =
plea are=20
      often such that they cannot be resolved without hearing evidence.=20
      <EM>Bland Indep. Sch. Dist.</EM>, 34 S.W.3d at 554. And, because a =
court=20
      must not act without determining that it has subject matter =
jurisdiction=20
      to do so, it should hear evidence as necessary to determine the =
issue=20
      before proceeding with the case. <EM>Id. </EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt"><EM></EM>In a plea to the =
jurisdiction,=20
      "the pleader must allege facts that affirmatively demonstrate the =
court's=20
      jurisdiction to hear the cause." <EM>City of Houston v. =
Rushing</EM>, 7=20
      S.W.3d 909, 913 (Tex. App.--Houston [1st Dist.] 1999, pet. =
denied). It is=20
      proper for a trial court to dismiss claims over which it does not =
have=20
      subject matter jurisdiction but retain claims in the same case =
over which=20
      it has jurisdiction. <EM>Thomas v. Long</EM>, 207 S.W.3d 334, =
338-39 (Tex.=20
      2006). That is, a trial court is not required to deny an otherwise =

      meritorious plea to the jurisdiction concerning some claims =
because the=20
      trial court has jurisdiction over other claims. <EM>Id. </EM>at =
339. A=20
      trial court's ruling on a plea to the jurisdiction presents a =
legal=20
      question which is reviewed de novo. <EM>See Northwood</EM>, 73 =
S.W.3d at=20
      308. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt"><STRONG>Governmental Immunity =
in Breach=20
      of Contract Suits </STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">In Texas, governmental immunity =
has two=20
      components: immunity from liability, which bars enforcement of a =
judgment=20
      against a governmental entity, and immunity from suit, which bars =
suit=20
      against the entity altogether. <EM>Tooke v. City of Mexia</EM>, =
197 S.W.3d=20
      325, 332 (Tex. 2006). By entering into a contract, a governmental =
entity=20
      necessarily waives immunity from liability, voluntarily binding =
itself=20
      like any other party to the terms of the agreement, but it does =
not waive=20
      immunity from suit. <EM>Id. </EM>Texas courts consistently defer =
to the=20
      Legislature to waive sovereign immunity from suit because this =
allows the=20
      Legislature to protect its policymaking function. <EM>Id. =
</EM>This is=20
      particularly true in the context of contract claims, where =
"legislative=20
      control over sovereign immunity allows the Legislature to respond =
to=20
      changing conditions and revise existing agreements if doing so =
would=20
      benefit the public." <EM>Id. </EM>To ensure that legislative =
control is=20
      not lightly disturbed, a waiver of immunity must be "clear and=20
      unambiguous." <EM>Id. </EM>at 332-33. <EM></EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">Section 271.152 of the Texas =
Local=20
      Government Code clearly and unambiguously waives local =
governments'=20
      immunity from suit for certain contractual claims and damages. =
<EM>See=20
      </EM>Tex. Loc. Gov't Code Ann. =A7 271.152 <EM>et seq. =
</EM>(Vernon 2005).=20
      Specifically, section 271.152 provides that: </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">[a] local governmental entity =
that is=20
      authorized by statute or the constitution to enter into a contract =
and=20
      that enters into a contract subject to this subchapter waives =
sovereign=20
      immunity to suit for the purpose of adjudicating a claim for =
breach of the=20
      contract, subject to the terms and conditions of this subchapter.=20
      </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt"><EM>Id.</EM> In the instant =
action=20
      against the City for breach of the Prime Contract, the City, as a=20
      municipality, is included within the statutory definition of a =
"local=20
      governmental entity," and the Prime Contract between the City and =
Kinsel=20
      is a "contract subject to this subchapter" because it is a =
"written=20
      contract stating the essential terms of the agreement for =
providing goods=20
      or services to [a] local governmental entity that [was] properly =
executed=20
      on behalf of the local governmental entity." <EM>See id. </EM>=A7=20
      271.151(2), (3)(A). In addition, the delay damages sought by =
Crouch=20
      against the City are included within the statute's limited damages =

      provision. <EM>Id. </EM>=A7 271.153 (indicating that the total =
amount of=20
      money awarded against a local governmental entity in a breach of =
contract=20
      action may include "any amount owed as compensation for the =
increased cost=20
      to perform the work as a direct result of owner-caused delays . . =
. .").=20
      As previously stated, however, the City argues that section =
271.152 is=20
      inapplicable here because the waiver of governmental immunity =
provided=20
      therein cannot be invoked by a third-party beneficiary. =
</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">Assuming, without deciding, =
that a=20
      third-party beneficiary may invoke the waiver of governmental =
immunity=20
      under section 271.152, we determine whether Crouch is, as a matter =
of law,=20
      a third-party beneficiary to the Prime Contract. In so doing, we =
are=20
      constrained by the limits of our review of a plea to the =
jurisdiction and=20
      must construe Crouch's pleadings liberally in favor of =
jurisdiction.=20
      <EM>City of Alton v. Sharyland Water Supply Corp.</EM>, 145 S.W.3d =
673,=20
      682 (Tex. App.--Corpus Christi 2004, no pet.). <A=20
      name=3Dstart></A></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">Crouch's pleadings allege that =
it is a=20
      third-party beneficiary to the Prime Contract because (1) the =
Subcontract=20
      incorporated the provisions of the Prime Contract and (2) the =
Prime=20
      Contract was intended to benefit Crouch. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">It is=20
      well-established that the intention of the contracting parties is=20
      controlling in determining whether a third party can enforce a =
contract.=20
      <EM>MCI Telecomms. Corp. v. Tex. Utils. Elec. Co.</EM>, 995 S.W.2d =
647,=20
      651 (Tex. 1999). We glean intent from what the parties said in =
their=20
      contract, not what they allegedly meant. <EM>Esquivel v. Murray =
Guard,=20
      Inc.</EM>, 992 S.W.2d 536, 544 (Tex. App.--Houston [14th Dist.] =
1999, pet.=20
      denied). The intention to confer a direct benefit on a third party =
must be=20
      clearly and fully spelled out in the four corners of the contract. =
<EM>MCI=20
      Telecomms.</EM>, 995 S.W.2d at 651. Thus, we may not create a=20
      third-party-beneficiary contract by implication. <EM>Id.</EM> For =
these=20
      reasons, there is generally a presumption against, not in favor =
of,=20
      third-party beneficiary agreements. <EM>Id. </EM>That is, it is =
presumed=20
      that the parties contracted for themselves unless it clearly =
appears that=20
      they intended a third party to benefit from the contract. <EM>Id.=20
      </EM>Because of this presumption, third-party-beneficiary claims =
will=20
      generally be denied unless: (1) the obligation of the =
bargain-giver is=20
      fully spelled out, (2) it is unmistakable that a benefit to the =
third=20
      party was contemplated by the primary contracting parties, and (3) =
the=20
      primary parties contemplated that the third party would be vested =
with the=20
      right to sue for enforcement of the contract. <EM>Whitten v. =
Vehicle=20
      Removal Corp.</EM>, 56 S.W.3d 293, 312 (Tex. App.--Dallas 2001, =
pet.=20
      denied)<EM>. </EM>If there is any reasonable doubt as to the =
intent of the=20
      contracting parties to confer a direct benefit on the third party, =
then=20
      the third-party-beneficiary claim must fail. <EM>Id. =
</EM></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">Here, the Prime Contract =
documents=20
      consist of nearly 100 pages. Crouch asserts that the Prime =
Contract's=20
      provision guaranteeing that "[a]ll work performed for [Kinsel] by =
a=20
      Subcontractor or Supplier will be pursuant to an appropriate =
agreement=20
      between [Kinsel] and the Subcontractor or Supplier which =
specifically=20
      binds the Subcontractor or Supplier to the applicable terms and =
conditions=20
      of the Contract Documents for the benefit of [the City]" =
demonstrates an=20
      intent to confer third-party benefits to subcontractors like =
Crouch. After=20
      reviewing the record, however, we cannot conclude that the Prime =
Contract=20
      clearly and fully spells out an intent on behalf of the City and =
Kinsel to=20
      confer a direct benefit upon Crouch. <EM>See MCI Telecomms.</EM>, =
995=20
      S.W.2d at 651; <EM>Whitten</EM>, 56 S.W.3d at 311. Nowhere in the =
contract=20
      documents is it stated that the parties are contracting for the =
benefit of=20
      Crouch or any other subcontractor. In fact, the contract documents =

      expressly state the opposite. In section 6.9.1 of the section =
titled=20
      "General Conditions," the Prime Contract states that "[n]othing in =
the=20
      Contract documents shall [be] for the benefit of any =
Subcontractor,=20
      Supplier or other person or organization . . ., nor shall it =
create any=20
      obligation on the part of [the City] to pay or see to the payments =
of any=20
      moneys due any Subcontractor, Supplier or other person or =
organization . .=20
      . ." Because the Prime Contract does not clearly express the =
intent of the=20
      parties to confer any benefit on third parties, Crouch's=20
      third-party-beneficiary claim necessarily fails. Absent =
third-party=20
      beneficiary status, Crouch cannot assert a claim for breach of the =
Prime=20
      Contract against the City and, thus, cannot invoke the waiver of=20
      governmental immunity under section 271.152 even if the statute =
permits it=20
      to do so. Because Crouch cannot invoke the waiver of governmental=20
      immunity, the trial court erred in denying the City's plea to the=20
      jurisdiction. </SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt"><STRONG>Conclusion</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt"><STRONG></STRONG>For the =
reasons stated=20
      above, we reverse the trial court's order denying the City's plea =
to the=20
      jurisdiction, as to Crouch's claims only, and we render judgment =
that=20
      Crouch's claims against the City be dismissed for want of =
jurisdiction.=20
      </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt">George C. Hanks, Jr.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt">Justice</SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt">Panel consists of Justices =
Hanks, Bland,=20
      and Wilson<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84590#N_2_"><SUP>=20
      (2)</SUP></A>=20
      <P><SPAN=20
      style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Times New =
Roman"></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Justice=20
      Wilson, concurring without opinion</SPAN></P>
      <P><A name=3DN_1_>1. </A></SPAN><SPAN style=3D"FONT-SIZE: =
13pt">The City also=20
      contends that Crouch's pleadings assert a claim for interference =
with the=20
      performance of a contract that cannot be brought under the waiver =
provided=20
      for in section 271.152, which applies only to breach of contract =
claims.=20
      In Crouch's third amended petition, the only cause of action =
asserted=20
      against the City is a breach of contract cause of action, which =
Crouch=20
      asserts as a third-party beneficiary. Pursuant to this cause of =
action,=20
      Crouch alleges that it incurred additional cost and expense in the =

      performance of its duties as a result of the City's interference =
with the=20
      performance of the Prime Contract. Crouch does not, however, =
assert that=20
      this interference is a separate cause of action, and, thus, we do =
not=20
      consider whether a claim for interference with the performance of =
a=20
      contract invokes the waiver of governmental immunity under section =

      271.152.=20
      <P><A name=3DN_2_>2. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The =
Honorable Davie=20
      L. Wilson, retired Justice, Court of Appeals, First District of =
Texas at=20
      Houston, sitting by assignment.<EM> See</EM> Tex. Gov't Code Ann. =
=A7=20
      74.003(h) (Vernon 2005).</SPAN><SPAN=20
      style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Times New =
Roman"></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"></TD></TR></TBODY></TABLE></BODY></HTML>

------=_NextPart_000_0046_01C7E1C3.5BC8FF40
Content-Type: image/gif
Content-Transfer-Encoding: base64
Content-Location: http://www.1stcoa.courts.state.tx.us/resource/opinions/images/icoEMail.gif

R0lGODlhFAAPAKIAAAAAgIAAAP///8DAwICAgAAAAAAAAAAAACwAAAAAFAAPAAADNCi63P4wykaq
vba4Mrr/ndaITxAM5JI2JrotQCwr7jjVDCnPAq7eKwEHRAwWjshkcsJsShIAOw==

------=_NextPart_000_0046_01C7E1C3.5BC8FF40
Content-Type: text/css;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.1stcoa.courts.state.tx.us/resource/includes/oca.css

.TitleBlue {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: left
}
.TitleBlueCenter {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: center
}
.TitleMaroon {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: maroon; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TitleWhite {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: white; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TitleBlack {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.NavWhite {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: white; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.NavWhite:hover {
	TEXT-DECORATION: underline
}
.BreadCrumbs {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif
}
A.BreadCrumbs {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-DECORATION: underline
}
A.BreadCrumbs:hover {
	COLOR: blue
}
.TextNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: black; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif
}
.TextJustify {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
black; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: justify
}
A.TextNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif; TEXT-DECORATION: underline
}
A.TextNormal:hover {
	FONT-WEIGHT: bold
}
.TextSmall {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-FAMILY: =
Arial Narrow
}
.TextSmallBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
#000099; FONT-FAMILY: Arial Narrow
}
.TextSmallJust {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-FAMILY: =
Arial Narrow; TEXT-ALIGN: justify
}
A.TextSmall {
	COLOR: #000099; TEXT-DECORATION: underline
}
A.TextSmallJust {
	COLOR: #000099; TEXT-DECORATION: underline
}
A.TextSmall:hover {
	FONT-WEIGHT: bold
}
A.TextSmallJust:hover {
	FONT-WEIGHT: bold
}
.TextSmallWhite {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
white; FONT-FAMILY: Arial Narrow
}
.TextWhite {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: white; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif
}
A.TextWhite {
=09
}
A.TextWhite:hover {
	FONT-WEIGHT: bold
}
.LinksSite {
	FONT-WEIGHT: normal; FONT-SIZE: 9pt; COLOR: #000099; FONT-FAMILY: Arial =
Narrow; TEXT-DECORATION: none
}
A.LinksSite {
=09
}
A.LinksSite:hover {
	FONT-WEIGHT: bold
}
.TextNotify {
	FONT-WEIGHT: normal; FONT-SIZE: 9pt; COLOR: #000099; FONT-FAMILY: Arial =
Narrow
}
.SiteMaster {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-DECORATION: underline
}
A.SiteMaster {
	LINE-HEIGHT: normal; TEXT-DECORATION: underline
}
A.SiteMaster:hover {
	COLOR: blue
}
.SiteMenu {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.SiteMenu {
	FONT-WEIGHT: bold; TEXT-DECORATION: none
}
A.SiteMenu:hover {
	COLOR: blue
}
.SiteBase {
	FONT-WEIGHT: bold; FONT-SIZE: 9pt; COLOR: #000099; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.SiteBase {
	FONT-WEIGHT: bold; COLOR: maroon; FONT-FAMILY: Tahoma, Arial, =
Helvetica, sans-serif; TEXT-DECORATION: none
}
A.SiteBase:hover {
	COLOR: blue
}
.ErrorNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: red; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
.ErrorSmall {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: red; =
FONT-FAMILY: Arial Narrow
}
.SystemMSG {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: white; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; BACKGROUND-COLOR: =
navy
}
.SystemErrorMSG {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: white; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; BACKGROUND-COLOR: red
}
.buttonUnused {
	PADDING-RIGHT: 1pt; PADDING-LEFT: 1pt; FONT-WEIGHT: normal; FONT-SIZE: =
9pt; PADDING-BOTTOM: 1pt; MARGIN: 1pt; COLOR: #fff5d7; PADDING-TOP: 1pt; =
BACKGROUND-COLOR: #576a9d; font-face: Tahoma, Arial, Helvetica, =
sans-serif
}
.buttonTanUnused {
	PADDING-RIGHT: 1pt; PADDING-LEFT: 1pt; FONT-WEIGHT: normal; FONT-SIZE: =
9pt; PADDING-BOTTOM: 1pt; MARGIN: 1pt; COLOR: #576a9d; PADDING-TOP: 1pt; =
BACKGROUND-COLOR: #fff5d7; font-face: Tahoma, Arial, Helvetica, =
sans-serif
}
.TextLargeBlue {
	FONT-WEIGHT: bold; FONT-SIZE: 12pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: left
}
.DocketHeaderTitle {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-FAMILY: Tahoma, Arial, ' Helvetica', sans-serif; TEXT-ALIGN: center
}
.TextLargeBlack {
	FONT-WEIGHT: bold; FONT-SIZE: 11pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TextLargeBlackcenter {
	FONT-WEIGHT: bold; FONT-SIZE: 11pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: center
}
.TextBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
A.TextBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
.TextRed {
	FONT-WEIGHT: normal; FONT-SIZE: 12pt; COLOR: red; LINE-HEIGHT: normal; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
.TextHidenGray {
	FONT-SIZE: 0pt; COLOR: #ebebe1; LINE-HEIGHT: normal; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif; TEXT-ALIGN: left
}
.Time {
	FONT-WEIGHT: bold; FONT-SIZE: 10px; COLOR: red; LINE-HEIGHT: 4em; =
FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: center
}

------=_NextPart_000_0046_01C7E1C3.5BC8FF40--
