Houston Oilers, Inc. v. Harris County, Tex.

Opinion on League Liability

HUGHES, District Judge.

1. Introduction.

When the parties to a transaction agree to abide by the judgment of a third-party about performance of their agreement, the third party is not liable for its exercise of judgment in the absence of actual corruption. This arises from the necessity inherent in the transactions as well as the parties’ agreement.

2. Background.

Harris County leases its domed stadium to Astrodome usa, a private corporation, and the Dome uses it for its baseball team and subleases it for conventions, concerts, rodeos, tractor pulls, and other events.

The…