The plaintiffs in Quadvest LP v. San Jacinto River Auth. alleged that a state-created river authority violated Section 1 of the Sherman Act by unreasonably restraining the market for wholesale raw water in Montgomery County. Procedurally, the Fifth Circuit concluded that the denial of the authority’s motion to dismiss on immunity grounds was appealable under Circuit precedent (acknowledging that the Fifth Circuit is an outlier on this point). Substantively, the Court affirmed the denial of the authority’s motion “at this stage” of the case, concluding that “the Texas Legislature did not authorize [the authority’s] entry into and enforcement of the challenged [contract] provisions with the intent to displace competition in the market for wholesale raw water in Montgomery County.” No. 20-20447 (August 5, 2021).
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