Opinion ID: 1383975
Heading Depth: 2
Heading Rank: 2

Heading: Waiver by Contract

Text: IT-Davy also argues that the contract clearly and unambiguously waives sovereign immunity from suit because it includes a provision stating that all claims or disputes related to the agreement will be decided by arbitration or in court. To support this contention, IT-Davy relies on federal cases that recognize Indian tribes' and foreign governments' rights to contractually waive those entities' immunity from suit. See, e.g., C & L Enters., Inc. v. Citizen Band Potawatomi Indian Tribe of Oklahoma, 532 U.S. 411, 418-19, 121 S.Ct. 1589, 149 L.Ed.2d 623 (2001); Atwood Turnkey Drilling, Inc. v. Petroleo Brasileiro, 875 F.2d 1174, 1177 (5th Cir.1989). IT-Davy also points to other states' case law determining that state officials' entering into a contract may waive the State's immunity from suit. See, e.g., Ace Flying Serv., Inc. v. Colorado Dep't of Agric., 136 Colo. 19, 314 P.2d 278, 280 (1957); Pan-Am Tobacco Corp. v. Dep't of Corrections, 471 So.2d 4, 5 (Fla.1984); Smith v. North Carolina, 289 N.C. 303, 222 S.E.2d 412, 424 (1976). On the other hand, the TNRCC argues that only the Legislature may waive the State's sovereign immunity from suit. Therefore, the TNRCC contends, neither the TNRCC nor its agents, who have authority to execute contracts on its behalf, have the power to waive sovereign immunity in express contractual terms. We agree. Indian tribes, foreign governments, and even administrative officials in other states may have the power to waive their sovereign immunity by contract. However, this does not control whether an administrative agent, in agreeing to certain contractual terms, can waive the agency's sovereign immunity in Texas. As the TNRCC observes, Texas law is clear. Only the Legislature can waive sovereign immunity from suit in a breach-of-contract claim. Federal Sign, 951 S.W.2d at 409. Administrative agencies, such as the TNRCC, are part of our government's executive branch. See, e.g., Williamson Pointe Venture v. City of Austin, 912 S.W.2d 340, 344 (Tex. App.-Austin 1995, no writ). Consequently, administrative agencies cannot waive immunity from suit. It also follows that administrative agentseven those who have authority to contract on the agency's behalfcannot waive their agencies' immunity from suit. Here, the Water Code designates the TNRCC's executive director as the person who has the authority to negotiate and execute contracts on the TNRCC's behalf so the TNRCC can carry out its powers, duties, and responsibilities. Tex. Water Code § 5.229. However, this provision does not clearly and unambiguously waive the TNRCC's immunity from breach-of-contract suits. See Tex. Gov't Code § 311.034; York, 871 S.W.2d at 177. Moreover, it does not clearly and unambiguously give the executive director the authority to do so. Therefore, even though the TNRCC's executive director had the authority to enter into the contract with IT-Davy on the TNRCC's behalf, he did not have authority to, and thus did not, waive the TNRCC's immunity from suit.