TX STATETexas Supreme Court
2003

Catalina Development, Inc. v. County of El Paso

121 S.W.3d 704Texas Supreme Court • Decided 2003Enforced
FLAGSHIPLiquidated DamagesCited 190 times

HOLDING

El Paso County solicited bids for land, accepted Catalina Development's $2.55 million bid, deposited earnest money, and sent deed documents—but then refused to sign and complete the sale. The Texas Supreme Court ruled that the county's actions during contract formation did not waive its sovereign immunity from lawsuits. This means government entities can back out of deals without facing damages, even after accepting bids and taking earnest money.

KEY FINDINGS

Liquidated Damages

Never assume a government contract is final just because they accepted your bid and took your money. Government entities retain immunity until they formally execute and authorize the deal.

FULL COURT OPINION