M & M Construction Co. v. Great American Insurance Co.

OPINION

NYE, Chief Justice.

This is an appeal from an order dismissing appellant’s suit with prejudice.

In February 1986, appellant, M & M Construction Company, Inc. (M & M), filed suit against appellees, Great American Insurance Company (Great American) and the City of Coitus Christi (City). Thereafter, M & M failed to pay its Texas franchise tax. As a result, its corporate charter was forfeited by the Secretary of State in July 1986. Great American and City responded by filing a joint motion to dismiss alleging that M & M’s suit was barred by Tex.Tax Code Ann. § 171.252 (Vernon 1982). This…