Tercero v. Texas Southmost College District, No. 19-40740 (5th Cir. 2021)Annotate this Case
After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.
The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount.