Hospital District potentially liable for breach of contract but not quantum meruit.

Dallas County Hospital District v Hospira Worldwide, Inc., No. 05-12-00902-CV (Tex. App. – Dallas April 30, 2013)

In this interlocutory appeal, the Dallas County Hospital District (“DCHD”) appealed the denial of a plea to the jurisdiction.  Hospira invoiced DCHD for certain medical equipment and supplies, but did not invoice for the full amount.  After the term of the lease was over, Hospira realized its mistake and invoiced the remaining amounts. DCHD asserted it retained governmental immunity from suit under Tex. Loc. Gov’t Code §271.152(West 2011). Hospira sued for breach of contract and alternatively for quantum meruit.

The Fifth Court of Appeals ruled that as a “special district” §271.152 waived DCHD’s immunity for breach of contract claims.  However, the court was clear that governmental immunity still exists for the extra contractual claims such as quantum meruit.

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