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Hoppenstein Properties Inc. v. Mclennan County Appraisal District

Hoppenstein Properties Inc. sued the McLennan County Appraisal District (MCAD) for breach of a commercial lease after MCAD abandoned the leased premises. The trial court granted MCAD's partial plea to the jurisdiction on Hoppenstein's claim for future damages. On original submission, Waco's 10th Court of Appeals affirmed the judgment, holding that the commercial lease is not a contract for goods or services under Local Government Code �271.152, which waives a local governmental entity's immunity from suits arising under such contracts. Hoppenstein has filed a motion for rehearing asking that the court reconsider this holding in light of the Texas Supreme Court's recent decision in Kirby Lake Development, Ltd. v. Clear Lake City Water Authority (2010). The motion for rehearing is granted. Waco Court of Appeals, No. 10-09-00426-CV, 12-22-2010

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OPINION ON REHEARING

Hoppenstein Properties, Inc. sued the McLennan County Appraisal District (“MCAD”) for breach of a commercial lease after MCAD abandoned the leased premises. The trial court granted MCAD’s partial plea to the jurisdiction on Hoppenstein’s claim for future damages. On original submission, this Court affirmed the judgment, holding that the commercial lease is not a contract for goods or services under section 271.152 of the Local Government Code, which waives a local governmental entity’s immunity from suits arising under such contracts. Hoppenstein has filed a motion for rehearing asking that the Court reconsider this holding in light of the Supreme Court’s recent decision in Kirby Lake Development, Ltd. v. Clear Lake City Water Authority, 320 S.W.3d 829 (2010). We will grant rehearing, withdraw the prior opinion and judgment, and reverse the trial court’s order.

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