City of Brownsville ex. rel. Pub. Utils. Bd. v. AEP Tex. Cent. Co
In City of Brownsville ex. rel. Pub. Utils. Bd. v. AEP Tex. Cent. Co., 348 S.W.3d 348 (Tex. App.--Dallas 2011, no pet.), AEP Texas Central Company ("AEP"), the appellee, raised a cross-point contending the City of Brownsville lacked standing to assert the causes of action at issue in the case based on an anti-assignment clause in the purchase and sale agreement between AEP and OMPA.
The anti-assignment clause stated:
"The rights under this Agreement shall not be assignable or transferable nor the duties delegable by either Party without the prior written consent of the other Party, which consent may be granted or withheld in such other Party's sole discretion." Id.
The Dallas Court of Appeals held this clause did not preclude OMPA from assigning its breach of contract action against AEP to the City. Id.
Rather, the clause merely precluded the assignment of rights and duties under the contract. Id.