CITY OF LEAGUE CITY v. JIMMY CHANGAS

No. 21-0307.

670 S.W.3d 494 (2023)

CITY OF LEAGUE CITY, Texas, Petitioner, v. JIMMY CHANGAS, INC., Respondent.

Supreme Court of Texas.

OPINION DELIVERED: June 9, 2023.


Attorney(s) appearing for the Case

Ramon G. Viada III , Houston, for Amici Curiae Texas Municipal League, Texas City Attorneys Association.

William S. Helfand , Houston, Andrew W. Gray , Austin, for Petitioner.

Nicole Cordoba , Kendyl Taylor Hanks , Austin, for Amici Curiae The Restaurant Law Center, Texas Restaurant Association.

Alfred Flores Jr. , C. Larry Carbo III , Kellen Ross Scott , Houston, Amy Foreman , Steven Knight , Houston, for Respondent.

Justice Boyd delivered the opinion of the Court, in which Chief Justice Hecht, Justice Lehrmann, Justice Devine, Justice Busby, Justice Huddle, and Justice Young joined.


This interlocutory appeal involves the thorny governmental/proprietary dichotomy in a breach-of-contract context. The court of appeals held that governmental immunity does not protect a city against a breach-of-contract claim because the city was acting in its proprietary capacity when it entered into the contract. We agree and affirm.

I.

Background

The Texas Local Government Code authorizes cities to grant and loan public funds for various beneficial...

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