Dallas Gerstle Snelson, LLP Austin

Two architects discussing new project.

Texas Supreme Court Clarifies Notice in Construction Contracts

On May 20, 2022, the Texas Supreme Court issued its long-awaited decision in James Construction Group, LLC. v. Westlake Chemical Corp., holding that substantial compliance with notice provisions in construction contracts is acceptable, except in one instance. If the contract requires that notice be in writing, the notice must be in writing. While the James Construction opinion has other important holdings, in this article we will focus exclusively on the Court’s application of the doctrine of substantial compliance with contractual notice requirements. The factual history of the dispute is l
Architectural blueprint with safety helmet and tools on blur dollar money background.

The Miller Act: A Primer

The Miller Act, 40 U.S.C. §§ 3131-3134, governs performance and payment bond acquisition and claims on federal projects (that is, projects being constructed on US Government property, or for the US Government or any agency of the US Government). Unlike the many tricky provisions hidden in the Texas Mechanics’ Lien statute, the Miller Act is relatively simple to maneuver, but not without pitfalls for the unwary.  Under the Miller Act, contractors on federal projects must post two bonds: A performance bond and a labor and material payment bond. A corporate surety company issuing these bonds
Eco friendly industry concept. 3d rendering of green factory icon on fresh spring meadow with blue sky in background.

Feds Require Clean Concrete and Eco-Friendly Asphalt

On March 30, 2022, the General Services Administration (“GSA”) issued two new standards intended to address greenhouse gas emissions in the design and construction of federal projects. These are the first of many anticipated regulations that will be issued to reduce greenhouse gasses in the design and construction industries. The standards apply to all GSA projects, capital and small, and regardless of funding source.  For instance, they apply to paving upgrades, new construction, modernizations, and privately-financed projects.  Most significantly and immediately, they apply to the $3.4
Professional engineer architect worker with protective helmet and blueprints paper at house building construction site

Lonergan is Dead, Long Live Lonergan

Lonergan, the much debated 1907 Texas Supreme Court opinion that the Court reaffirmed in its MasTecopinion in 2012, was overruled by the Texas Legislature in 2021 and codified as Chapter 59 of the Texas Business and Commerce Code (“Chapter 59”).  While the law became effective on September 1, 2021, exceptions and unanswered questions abound. The effect of Chapter 59 is to limit contractors’ liability for design defects when the contractor plays no part in the preparation of the design documents. Although Chapter 59 is brief and may seem to the point, it is important to familiarize yours
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