Ray Ferguson Interests, Inc. v. Harris County Sports & Convention Corp.
169 S.W.3d 18 | Texas Court of Appeals, 1st District (Houston) | 2004
What This Case Means for Subcontractors
Ferguson, a subcontractor, sued Harris County Sports & Convention Corp. (HCSCC) over defective work at Reliant Stadium. HCSCC tried to dismiss the case by claiming governmental immunity. The Texas Court of Appeals ruled that HCSCC waived its immunity by filing a counterclaim seeking money from Ferguson. The court reversed the dismissal and sent the case back to trial, meaning Ferguson can proceed with his lawsuit.
Key Takeaways
- •If a government entity sues you back with a counterclaim, they may lose their immunity shield—your claims can move forward even if they initially tried to dismiss you
- •Counterclaims related to your original dispute can trigger a waiver of governmental immunity, so don't assume a government client is untouchable once they file a counterclaim
- •Document all defects and design problems carefully—this case shows courts will examine whether problems came from the contractor's work or the owner's design team
By asserting affirmative relief counterclaim, HCSCC waived immunity from Ferguson's germane claims.
Frequently Asked Question
Can a government agency use immunity to dismiss my lawsuit if they file a counterclaim against me?
No. If a government entity files a counterclaim seeking money or relief from you, they waive their governmental immunity protection. This means your original claims can proceed to trial even though they're a government agency. Make sure your claims relate to the same dispute as their counterclaim.
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