HOUSTON – The city of League City found no relief on appeal and will have to continue litigating a breach of contract lawsuit brought by the restaurant chain Jimmy Changas.
Today, the 14th Court of Appeals affirmed a trial court ruling denying the city’s plea to the jurisdiction.
In 2012, the city entered into an incentive agreement with Jimmy Changas to develop a restaurant within city limits. When League City allegedly failed to pay Jimmy Changas as agreed, the restaurant sued.
On appeal, the city argued the trial court erred in denying its plea because the city engaged in a governmental function when it entered into the contract and therefore has immunity.
Justices concluded governmental immunity does not apply.
Case No. 14-19-00776-CV