(a) This section applies only to a municipal hospital authority wholly located in a county with a population of less than 70,000.
(b) A municipal hospital authority that enters into a contract to sell a hospital owned by the authority waives governmental immunity to suit for the purpose of adjudicating a claim for breach of the contract.

Terms Used In Texas Health and Safety Code 262.0335

  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Population: means the population shown by the most recent federal decennial census. See Texas Government Code 311.005

(c) For a breach of contract claim described by Subsection (b), a claimant may not be awarded:
(1) a total amount that exceeds the amount due and owed by the municipal hospital authority under the contract; or
(2) consequential or exemplary damages.
(d) A municipal hospital authority that enters into a contract to sell a hospital owned by the authority may indemnify the purchaser of the hospital according to the terms of the contract.

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