Jones Bros. contracted with TxDOT to work on a highway project and had to use a Disadvantaged Business Enterprise (DBE) subcontractor. When Jones tried to remove the DBE subcontractor, TxDOT's Business Opportunity Program (BOP) rejected the removal request. The Texas Supreme Court ruled that disputes with TxDOT must follow the state's administrative process, not regular court lawsuits. The court also confirmed that TxDOT's decisions can only be challenged if they involve partiality, fraud, misconduct, or gross error—a high bar to meet.
If you have a contract dispute with TxDOT, you must use the administrative remedy process under Texas Transportation Code § 201.112. You cannot sue TxDOT in regular court for breach of contract.
When challenging a TxDOT decision (like DBE subcontractor removal), you must prove partiality, fraud, misconduct, or gross error. Simply disagreeing with the decision is not enough.