Rosenberg Development Corp. v. Imperial Performing Arts, Inc.
Imperial Performing Arts, Inc. (IPA) sued Rosenberg Development Corporation (RDC) for breach of contract and declaratory judgment. RDC filed a plea to the jurisdiction, claiming governmental immunity from suit. The trial court partially granted and partially denied RDC's plea. On interlocutory appeal, RDC challenged the denial of its plea. The appellate court affirmed the trial court's partial denial, holding that economic development corporations like RDC generally do not possess common law governmental immunity from suit for contract claims. The court further clarified that the statutory immunity granted to Type B corporations under Local Government Code § 505.106 is limited to tort claims and immunity from liability for damages, neither of which supported RDC's plea for immunity from suit in this contract dispute.