City of Austin v. Houston Lighting & Power Co.
The City of Austin appealed a take-nothing judgment against Houston Lighting & Power Company and Houston Industries, Inc. (HL&P) concerning a jointly owned nuclear power plant. Austin alleged breach of contract, fraud, and violations of the Deceptive Trade Practices Act (DTPA), asserting HL&P's failures as project manager led to significant cost overruns. The trial court had sustained HL&P's special exceptions regarding an implied duty of skill and care and found no causal link between HL&P's actions and increased project costs. The appellate court affirmed the trial court's judgment, concluding that the duty of reasonable skill and care was not implied in the participation agreement and that the jury's findings were supported by the evidence.