SD&M Lawyers Prevail in Appeal on Important Immunity Issue
SD&M lawyers Steve McConnico, Jane Webre, Ryan Squires, and Kennon Wooten won an appeal before the Third Court of Appeals at Austin regarding an important issue of municipal immunity from certain contract suits. SD&M represents the LCRA, which had sued the City of Georgetown for repudiating an agreement to purchase electric power. The issue on appeal was whether the City was immune from suit over that contract, and the court of appeals held that it is not. The court recognized a dichotomy between a municipality’s governmental functions and its proprietary functions, and held that a city does not enjoy immunity from contract claims that arise out of its proprietary functions. Because the contract at issue arose out of the City’s proprietary functions of operating an electric utility, it was not entitled to immunity from the LCRA’s contract claim. The majority opinion can be found here.