Dallas Gerstle Snelson, LLP Austin

Working Pumpjacks On Sunset

The Economic Loss Rule, Affirmed Again

In White Star Pump Co., LLC v. Alpha Hunter Drilling, LLC (No. 14-20-00207-CV, 2021 WL 5707713, at *1 (Tex. App.—Houston [14th Dist.] Dec. 2, 2021, no pet.), the Fourteenth Court of Appeals affirmed the importance of the economic loss rule in Texas. At the trial level, the jury rejected a well operator, Alpha Hunger Drilling, LLC’s (“Alpha Hunter”) claims but for its negligent undertaking claim and awarded it $1.6 million for the market value of the pump and the loss of use of the pump. The Fourteenth Court of Appeals reversed and rendered a take-nothing judgment because Alpha Hunter
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Extrinsic Evidence Allowed for Duty to Defend

In a decision issued on February 11, 2022, the Texas Supreme Court opened the door a little wider (or a lot wider, depending upon whom you ask) for allowing use of extrinsic evidence in determining whether an insurer owes a duty to defend.  The decision marks a significant deviation from the strict eight corners analysis the Court has espoused for many years and will have significant implications on the construction industry in the coming years. In Monroe Guaranty Ins. Co. v. BITCO General Insurance Corp., David Jones (Jones) retained 5D Drilling & Pump Service (5D) in 2014 to drill a 360
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Project Labor Agreements for Federal Contractors

Last week, President Biden issued Executive Order 14063 (“EO 14063”), requiring Project Labor Agreements (“PLA”) for domestic federal construction projects with estimated construction costs of $35 million or more.  What are PLAs? How does this from President Obama’s prior executive order? And, are there exceptions to this requirement? A PLA is a form of collective bargaining that imposes wage and benefit requirements on construction firms competing for public contracts. The specific wages, benefits, and terms and conditions are imposed by local unions’ private collective bargainin
Worker man sitting to getting covid vaccine, with nurse injecting vaccine to get immunity for protect virus. Vaccination for Essential Workers in clinic healthcare at industrial factory.

Vaccine Mandates for Federal Contractors

Between November 30, 2021 and December 22, 2021, four federal courts enjoined President Biden’s order that would have required federal contractors to have all their employees vaccinated against COVID-19.  One of the injunctions, issued by a Georgia federal court, applies to all 50 states, including Texas.  While further appeals are likely, for the time being, the vaccination requirement is not enforceable. The Seminal Questions The federal courts that have addressed the vaccine mandate have grappled with three very thorny questions: Did President Biden have the authority to issue the ma
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Texas’ Share of the 2021 Federal Infrastructure Act

On November 15, 2021, President Joe Biden signed into law the infrastructure Investment and Jobs Act. The Act will provide approximately $1.2 trillion of funding for infrastructure projects across the country with the goal of modernizing the country’s outdated transportation, utilities, and broadband systems. The funding is expected to be disbursed over a five-year period, with the majority after 2022. The Act allocates the following amounts for infrastructure projects, with infrastructure defined loosely to capture more than the typical road and bridge projects. Roads, bridges, major pro