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repealed.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