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Texas Supreme Court hears dispute over whether transit statute bars fraud damages in paratransit contract case

Supreme Court of Texas · March 3, 2026
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Summary

The court heard arguments in MP/MB Transportation v. GDS Transport over whether a statutory limitation tied to Dallas Area Rapid Transit functions bars monetary damages for alleged fraud by a subcontractor and whether a cited master agreement may be considered at the Rule 91a pleading stage.

The Supreme Court of Texas heard oral argument in MP/MB Transportation v. GDS Transport on whether a statutory provision limiting damages for entities performing functions of the Dallas Area Rapid Transit Authority (DART) prevents a subcontractor from recovering monetary damages for alleged fraud.

In the morning argument, petitionercounsel (identified in the record as Mr. Obinowski) told the court the appeal challenges an order granting a Texas Rule of Civil Procedure 91a motion that dismissed damage claims for fraud. "This is an appeal from an order granting a full 91a motion, dismissing any claim for damages for fraud," he said, framing the dispute as one that turns on the petition's factual allegations about whether the petitioner performed a DART function.

Respondent counsel, Miss Pendry, urged the court to affirm the court of appeals. She…

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