Breach of Confidentiality Provision May Lead to Lawsuit
MCALLEN - Nearly year and a half later, the City of McAllen is bound to silence regarding the fees paid to a pop performer.
The public and the media are requesting to see, even as a matter of principle, what the city spent on the event.
On the other side, Enrique Iglesias' legal team and promoters don't want it known, and the legal business venture is backing them.
McAllen city attorney Kevin Pagan said his team is trying to protect taxpayers from a lawsuit. A confidentiality provision was put in place in the agreement.
"Confidentiality provisions were not the topic of a lot of discussion… They were just routinely held to not be enforceable," he said. "Because the Texas Public Information Act likely trumps that provision and we would have to release it anyway."
Texas law grants taxpayers a right to request information under state law. Pagan said the city told the artist's team what would happen and then signed the contract.
Then the Texas Attorney General ruled the city cannot release the contract.
The situation fell within legal precedent set months earlier. Businesses can get an exemption under the Public Information Act to not release a contract because their bottom line can be affected.
"After the Attorney General told us it was enforceable? The risk to the taxpayers would have been a lawsuit by Mr. Iglesias against the city of McAllen for breach of that confidentiality provision. Which could it be a large sum of money if we were found to be in breach of that contract," he said.
It's money that would have to come out of taxpayers' pockets.
The city can't change what it already agreed to, but Pagan said they can take a closer look going forward.
"On a case-by-case basis, the one thing I will for sure do is take them up to the city commission and inform them very clearly that these folks are saying they won't do business with us unless we agree to this confidentiality provision," he said.
Count on us to bring you more updates to this story.