SECTION 3.65. Counterclaim

(a) If the Land Office asserts a counterclaim under Texas Government Code, Chapter 2260, it must file notice of the counterclaim as provided by this section.

(b) The notice of counterclaim must:

(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) With its notice of counterclaim, the Land Office may submit supporting documentation or other tangible evidence to facilitate the contractor's evaluation of the Land Office's counterclaim.

(d) The Land Office must deliver the notice of counterclaim to the contractor no later than 60 days after the Land Office's receipt of the contractor's notice of claim.

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

Source Note: The provisions of this §3.65 adopted to be effective November 25, 2019, 44 TexReg 7186