A significant legal dispute surrounding an $11 million park project in Williamson County has reached the Texas Court of Appeals for the Third District, where justices are currently evaluating whether the county can proceed with a lawsuit against Great American Insurance Co. of New York. The case, which centers on contract interpretations and the statute of limitations, is being closely followed under the key issue: Texas Court County $11M Project Lawsuit.
In 2022, Williamson County filed a lawsuit against Great American Insurance after terminating its contract with Ritter Botkin Prime Construction Co. Inc., citing alleged substandard work and delays on a publicly funded park development. The County claims the insurer failed to fulfill its obligations under performance and payment bonds.
During oral arguments, the appellate court explored whether the performance bond constituted a separate contract from the main construction agreement. Justice Gisela Triana questioned whether the existence of two distinct contracts could impact the applicability of the statute of limitations.
Representing Great American, attorney Mike Pipkin of Weinstein Radcliff Pipkin LLP argued that two contracts were involved: the construction contract with Ritter Botkin and a separate bond agreement. He asserted that the statute of limitations began when Williamson County issued termination letters in June 2021 and demanded compliance with the bond. According to Pipkin, the County failed to file its claim within the required one-year period, making the trial court’s ruling erroneous.
Justice Karin Crump expressed concern over the potential for sureties to delay responses until the statute of limitations expires. Pipkin responded that the County still had a full year to act and that Great American, as a surety, held only conditional liability.
Jeffrey Chapman of The Chapman Firm PLLC, representing Williamson County, countered that the bond was not a separate agreement but rather a component of the broader construction contract. He emphasized that the statute of limitations should only apply if the entire contract was terminated, which, according to him, did not occur.
The outcome of this Texas Court County $11M Project Lawsuit could impact how public construction contracts and related bond claims are interpreted across the state.
Great American Insurance Co. is represented by Mike F. Pipkin, Taylor Feldt, and Analicia Garcia of Weinstein Radcliff Pipkin LLP. Williamson County is represented by Jeffrey S. Chapman and Kerrie M. Taylor of The Chapman Firm PLLC.
