| 1 | 1 | | 81R6488 NC-D |
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| 2 | 2 | | By: Hartnett H.B. No. 3203 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the recovery of attorney's fees in an action for breach |
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| 8 | 8 | | of contract involving certain local governmental entities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 271.153(a), Local Government Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) The total amount of money awarded in an adjudication |
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| 13 | 13 | | brought against a local governmental entity for breach of a |
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| 14 | 14 | | contract subject to this subchapter is limited to the following: |
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| 15 | 15 | | (1) the balance due and owed by the local governmental |
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| 16 | 16 | | entity under the contract as it may have been amended, including any |
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| 17 | 17 | | amount owed as compensation for the increased cost to perform the |
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| 18 | 18 | | work as a direct result of owner-caused delays or acceleration; |
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| 19 | 19 | | (2) the amount owed for change orders or additional |
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| 20 | 20 | | work the contractor is directed to perform by a local governmental |
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| 21 | 21 | | entity in connection with the contract; [and] |
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| 22 | 22 | | (3) reasonable and necessary attorney's fees that are |
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| 23 | 23 | | equitable and just; and |
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| 24 | 24 | | (4) interest as allowed by law. |
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| 25 | 25 | | SECTION 2. Section 271.159, Local Government Code, is |
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| 26 | 26 | | repealed. |
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| 27 | 27 | | SECTION 3. The change in law made by this Act applies only |
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| 28 | 28 | | to a claim that arises under a contract executed on or after the |
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| 29 | 29 | | effective date of this Act. A claim that arises under a contract |
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| 30 | 30 | | executed before the effective date of this Act is governed by the |
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| 31 | 31 | | law as it existed immediately before the effective date of this Act, |
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| 32 | 32 | | and that law is continued in effect for that purpose. |
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| 33 | 33 | | SECTION 4. This Act takes effect September 1, 2009. |
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