Zachry Construction Corporation, Petitioner v. Port of Houston Authority of Harris County, Texas, Respondent

Summary

The Texas Supreme Court reversed the Court of Appeals, holding that the contract's no‑damages‑for‑delay provision is unenforceable as contrary to public policy and that the Local Government Contract Claims Act waives the Port's immunity for delay damages, allowing Zachry to recover both delay damages and the liquidated‑damages payments it had withheld. The Court also reversed the award of attorney fees and remanded for further proceedings.