The appellate court upheld a Williamson County's judge's previous decision to dismiss the suit.
According to a city release, Legacy alleged in June 2020 that the city had breached its contract on a mixed-use development that was to be anchored by Perfect Game.
The release states city staff initially entered into a contract with Legacy in 2019 after the then-city attorney gave legal approval, but the contract never received approval from City Council.
After the city changed law firms in 2020, the new city attorney identified several legal flaws in the contract, the release says. After unsuccessful attempts to settle, Legacy filed its suit with the Williamson County District Court.
According to the release, the city's successful case hinged on "Legacy’s failure to comply with a state government transparency law" invalidating the contract. The court's ruling clears the city of any obligation to pay the $4 million sought by Legacy.
Legacy now has a 45-day window to appeal the decision to the Texas Supreme Court.
The city has several other pending cases involving developers and contractors. With the city's success in the Legacy case, the release says it "appears more likely to prevail in similar pending cases."