Bexar Metro. Water Dist. v. City of Bulverde
In Bexar Metro. Water Dist. v. City of Bulverde, 156 S.W.3d 79 (Tex. App.--Austin 2004, pet. denied), a joint venture sued Bexar Met for specific performance of a contract to sell real estate after Bexar Met had refused to close. Id. at 27.
The joint venture argued that principles of justice, honesty, and fair dealing should estop Bexar Met from asserting its immunity from suit. Id. at 32.
The court held that, because the joint venture had failed to show that application of equitable estoppel would not interfere with the exercise of Bexar Met's governmental functions and that Bexar Met had accepted and retained the benefits arising from the contract, Bexar Met was not estopped from asserting its immunity, and it reversed the trial court's denial of Bexar Met's plea to the jurisdiction. Id.