The Texas Supreme Court reversed a lower court decision and held that contractors working on highway projects can claim statutory liability protection under Civil Practice and Remedies Code Section 97.002 without maintaining direct contractual relationships with the Texas Department of Transportation.

The case, *Third Coast Services, LLC and SpawGlass Civil Construction, Inc. v. Felicitas Castaneda* (Tex. 2025), arose from a fatal traffic accident involving Pedro Castaneda at the intersection of State Highway 249 and Woodtrace Boulevard. Castaneda was driving across the highway when two vehicles collided with his truck at an intersection that was under construction at the time of the accident.

At the time of the collision, traffic lights had been installed but were not yet operational. The parties disputed whether the traffic lights were covered with black fabric to indicate they were not working, but the police report indicated that Castaneda failed to yield the right of way at a stop sign that controlled the intersection while the traffic lights remained non-functional.

Following Castaneda's death, his family filed a wrongful death lawsuit against Third Coast Services and SpawGlass Civil Construction, the contractors working on the highway project. Both companies sought protection under Civil Practice and Remedies Code Section 97.002, which extinguishes liability for contractors who construct or repair highways, roads, or streets for TxDOT and meet certain other statutory requirements.

The Fourteenth District Court of Appeals had previously ruled that Section 97.002 did not apply to protect the contractors because neither company had contracted directly with TxDOT. The appeals court imposed a contractual-privity requirement, meaning that only contractors with direct contractual relationships with the state transportation department could claim the statutory immunity.

Justice Huddle, writing for the Texas Supreme Court majority, rejected this interpretation and held that the court of appeals erred by adding a contractual-privity requirement that does not appear in the statute's text. The high court found that the appeals court had improperly "engrafted" this additional requirement onto Section 97.002.

The Supreme Court's analysis focused on the plain language of the statute, which provides immunity for contractors who perform construction or repair work "for" TxDOT. The court determined that this language does not require a direct contractual relationship between the contractor and the state agency. Instead, the statute's protection extends to contractors who perform qualifying work for TxDOT, regardless of whether they hold prime contracts or work as subcontractors.

In its opinion, the court held that the contractors had "conclusively established" that they worked "for" TxDOT as Section 97.002 requires. The court also found that the work they performed qualified as construction or repair of "a highway, road, or street" within the meaning of the statute.

However, the Supreme Court did not grant complete immunity to the contractors. Instead, the court remanded the case to the Court of Appeals for the Fourteenth District to determine whether the contractors conclusively established the remaining elements required under Section 97.002. This suggests that additional statutory requirements must be satisfied for the immunity to apply, though the specific nature of these remaining elements was not detailed in the available portion of the opinion.

The decision represents a significant expansion of liability protection for highway construction contractors in Texas. By eliminating the direct contract requirement, the ruling extends statutory immunity to subcontractors and other companies that work on TxDOT projects without holding prime contracts with the state agency.

This interpretation of Section 97.002 could have broad implications for construction liability cases throughout Texas. Subcontractors and specialty contractors who previously faced potential liability exposure when working on state highway projects may now claim protection under the statute, provided they can establish the other required elements.

The ruling also clarifies the scope of work covered by the statute. By confirming that the contractors' activities qualified as construction or repair of "a highway, road, or street," the court provided guidance for determining when Section 97.002 applies to different types of transportation infrastructure projects.

Justice Lehrmann did not participate in the decision, though no explanation was provided for the recusal. The case was argued before the court on September 9, 2025.

For construction companies working on Texas highway projects, this decision provides clearer pathways to statutory immunity from certain liability claims. However, contractors must still satisfy all other requirements under Section 97.002 to qualify for protection, and the remand suggests that establishing these elements may require detailed factual analysis in each case.

The family's wrongful death lawsuit will now return to the appeals court, where the contractors will need to demonstrate they meet any remaining statutory requirements before the immunity defense can be fully established.