Texas Department of Transportation v. Jones Bros. Dirt & Paving Contractors, Inc.
92 S.W.3d 477 | Texas Supreme Court | 2002
What This Case Means for Subcontractors
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.
Key Takeaways
- •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.
- •Include clear contract language about subcontractor performance requirements and the approval process. Document all communications with TxDOT about subcontractor performance issues before requesting removal.
The ALJ correctly applied the partiality, fraud, or gross error standard to review the BOP's decision.
Frequently Asked Question
Can I sue TxDOT in court if they reject my request to remove a DBE subcontractor?
No. Texas law requires you to use the administrative remedy process through the Transportation Code, not regular court litigation. You can only challenge TxDOT's decision if you can prove partiality, fraud, misconduct, or gross error—which is a difficult standard to meet. Work through the administrative process first.
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