The Roanoke Times reports here that the big paper company has filed suit after the city changed its mind on whether to give land in an industrial park as part of an industrial development deal.
Perhaps the City will argue that the land give-away was illegal in the first place, and therefore the contract is not enforceable. Local governments are not protected by sovereign immunity from liability for breach of contract. They are, however, not generally estopped from arguing that the contracts they themselves made were illegal or ultra vires.
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