HOUSTON – The First Court of Appeals recently reversed a ruling denying Texas Southern University’s plea to the jurisdiction in a breach of contract lawsuit brought by the Pepper Lawson Horizon International Group.
Court records show that in February 2014 TSU awarded PLH a contract for the construction of a new student housing project for a fixed price of $41.5 million. Completion of project was slated for Aug. 31, 2015.
However, work delays started to arise shortly after work began. PLH completed the project in February 2016 and invoiced TSU for the remaining balance it believed it was owed.
When TSU withheld payment, PLH sued, alleging breach of contract. The company sought to recover $3,320,605 for the balance of the contract and change orders, plus $3,677,580 for additional costs.
Court records show TSU responded by asserting it sovereign immunity. The trial court denied the university’s plea to the jurisdiction and appeal ensued.
On Dec. 1, the First Court found PLH failed to show how TSU waived its immunity.
“Thus, we hold the trial court erred in denying TSU’s first amended plea to the jurisdiction on PLH’s breach-of-contract claim,” the opinion states. “We reverse the trial court’s order denying TSU’s first amended plea to the jurisdiction and render judgment dismissing the suit of PLH for lack of subject-matter jurisdiction.”
Appeals case No. 01-19-00395-CV