MEMBER UPDATE
June 30, 2009
SUPREME COURT REVERSES APPEALS COURT RULING ON STATUTE OF REPOSE
The Texas Supreme Court last week overturned an earlier appeals court decision that negatively impacted the 10-year statute of repose for engineers and architects.
In September 2007, the Fourth Court of Appeals in San Antonio ruled that Section 33.004(e) of the Civil Practice and Remedies Code, which allows certain claims to be revived even though they are otherwise “barred by limitations,” applied to the statute of repose for engineers and architects. This provision was enacted as a result of the passage of House Bill 4 (the tort reform bill) in 2003. In effect, the Court’s opinion rendered the statute of repose meaningless in many instances.
The case was appealed to the Texas Supreme Court, with TEXAS CEC participating financially in funding the appeal. Meanwhile, Senator Jeff Wentworth and Representative Bryan Hughes passed legislation in the recent legislative session that corrected the original ruling, only to have it vetoed by Governor Perry.
On Friday, the Governor’s veto was rendered moot when the Texas Supreme Court issued its opinion reversing the earlier opinion by the appeals court. The Supreme Court’s opinion makes clear that the statute of repose is 10 years, that it is different and separate from a statute of limitation, and that the Legislature never intended for Section 33.004(e) to revive claims extinguished by a statute of repose.
A link to the Supreme Court’s opinion can be found at:
http://www.supreme.courts.state.tx.us:80/historical/2009/jun/071051.htm
SPECIAL SESSION JULY 1 ON SUNSET, OTHER ISSUES
Governor Perry has called a special legislative session to start tomorrow that will address (1) the extension of several state agencies (including TxDOT) for which the Legislature failed to pass sunset bills during the regular session; (2) authorization for the issuance of $2 billion in Proposition 12 general revenue bonds for transportation projects; and (3) extending the deadline for certain comprehensive development agreements (public-private partnerships for transportation).
The Governor and legislative leaders hope for a short, 2-3 day session, but the CDA extension could cause complications. Legislators indicated a willingness to extend CDAs during the regular session, but only with numerous restrictions and a priority for allowing public toll authority projects.
IN THE NEWS
Go to Infrastructure News at www.cectexas.org/infrastructure for newspaper articles from around the state and country on transportation, environment, construction, public works and other areas including:
- The so-called "Nichols language" could threaten Governor Perry's dream of a short special session.
- The top candidate for the regional EPA administrator post faces opposition.
- The Rio Grande Valley is developing a plan to revamp its drainage systems for the first time in four decades.
- Corps of Engineers' caution on Trinity Project colllides with the desire to go forward.
- $1.5 billion in construction projects to come in El Paso area.
- Coming soon: 7 more miles of SA River Walk.
- Fate of Highway 45 SW remains uncertain.
- The special session may not be enough to keep DFW road projects going.
- UTMB starts post-Ike building surge.
- and much more . . . .
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