SECTION 1.1807. Agency Counterclaim

(a) To assert a counterclaim under the Government Code, Chapter 2260, the department shall file notice of the counterclaim as provided by this section.

(b) The notice of counterclaim shall:

(1) be in writing;

(2) be delivered by hand, certified mail return receipt requested or other verifiable delivery service to the contractor or representative of the contractor who signed the notice of claim of breach of contract; and

(3) state in detail:

(A) the nature of the counterclaim;

(B) a description of damages or offsets sought, including the amount and method used to calculate those damages or offsets; and

(C) the legal theory supporting the counterclaim.

(c) The notice of counterclaim shall be delivered to the contractor no later than 60 days after the department's receipt of the contractor's notice of claim.

(d) Nothing herein precludes the department from initiating a lawsuit for damages against the contractor in a court of competent jurisdiction.

Source Note: The provisions of this §1.1807 adopted to be effective November 27, 2000, 25 TexReg 11658; amended to be effective May 9, 2007, 32 TexReg 2469