2023 Legislative Update
Several new bills affecting the construction industry have been filed in the Texas Legislature’s current session, some of which have been filed and are in the process of being referred to committees.
H.B. 2310 by Representative Canalas would require a plaintiff in a commercial construction defect cases, at the time the lawsuit it filed, to attach a sworn verification describing with particularity the alleged defects and the factual basis for why each defendant’s work is implicated. If the pleading is insufficient, the defendant can ask that the lawsuit be dismissed. If the court finds th
Texas Legislative Update
The Texas Legislature has started its 88th Regular Session and as of January 23, 2023, more than 2,150 bills and joint resolutions have been filed. We examine a few bills that are of particular interest to the design and construction industry.
SB 283 – Relating to requiring workers’ compensation coverage for employes of building and construction contractors and subcontractors
Summary: Would require all contractors and their subcontractors for a public work project to be covered by workers compensation insurance.
HB 1054 – Requiring classification of certain construction workers with th
Duty to Defend
What happens when a construction-related claim is reported untimely or falls outside coverage of a construction management professional liability policy? From the policyholder’s perspective, nothing good.
The Policies
The coverage dispute, recently decided by the United States Court of Appeals for the Second Circuit (New York), involves a general contractor and two Texas projects. Hunt Construction Group, the contractor, bound two construction management professional liability insurance policies from Berkley Assurance Company. The policies included the same material terms, but were for
Southwest Meltdown Lawsuit
What happens when winter weather disrupts a major airline’s operations and strands thousands of passengers for days on end? Unlike Southwest Airlines’ planes in December 2022, the first lawsuit regarding the meltdown has arrived early.
Tens of thousands of flights were delayed or cancelled during the December holiday break in 2022 because of abnormally cold weather across most of the United States. Southwest Airlines was the most impacted airline and the last airline to resume normal operations. The extensive delays and cancellations by Southwest were attributed to staffing issues and fa
Do Arbitration Agreements Run with the Land?
Do arbitration agreements in home construction contracts run with the land? The Texas Supreme Court recently answered this question affirmatively, binding a subsequent buyer to arbitration.
In Lennar Homes of Texas Land and Construction, Ltd., et al. v. Kara Whitely, Kara Whitley filed suit against Lennar alleging negligent construction, breach of warranties and DTPA claims regarding a house she had purchased from the original buyer. Lennar built the house in Dickinson, Texas and sold it to the original buyer in 2014. At the time, Lennar conveyed the house and property via special warranty d