Dallas Gerstle Snelson, LLP Austin

Closeup of team of industrial engineers meeting analyze machinery blueprints consult project on table in manufacturing factory. Working in manufacturing plant or production plant.

Engineer Owes No Duty in Death Case

What duty, if any, does an engineer have to warn of potential hazards associated with a conceptual design? The United States District Court for the Southern District of Texas, Houston Division, in Alviarez v. Goya Foods, Inc., recently held that no duty existed, granting summary judgment to the engineer. In 2012, Goya Foods Inc. announced plans to open a new facility in Brookshire, Texas and retained Ambitech Engineering Corporation (now part of Zachry Engineering Corp.) to (1) generate conceptual layouts for both the process and packaging areas of the new facility, and (2) with approval from
Freedon of Speech

Texas Supreme Court Upholds Insurance Adjuster Statute

The Texas Supreme Court, in Texas Department of Insurance v. Stonewater Roofing, Ltd. Co., affirmed the licensing requirements for public adjusters and the prohibition of public adjusters to also act as repair contractors. How did the Court reach this opinion and what impact will it have on the construction industry? In Stonewater, a commercial customer of Stonewater Roofing Ltd. Co. (Stonewater) sued Stonewater for violating the Public Insurance Adjusters Act (“Act”), Texas Insurance Code Chapter 4102. Stonewater then filed a declaratory judgment action against the Texas Department of Ins
Selective focus of magnifying glass,glasses and Insurance Policy letter on a white wooden background.

No Standing for Additional Insured

A Texas federal court recently held that an additional insured lacked standing to file an independent claim against an insurer.  In Antares Underwriting, Ltd. v. Magellan E&P Holdings, Magellan entered into an Emergency Agreement with Great White Well Control (“GWWC”) to provide well control services.  The Agreement had an effective date of September 1, 2020. Antares Underwriting Limited (“Antares”) issued an energy policy to Magellan with a policy term of June 30, 2020 to June 30, 2021.  When GWWC made a claim for additional insured coverage under the energy policy, Antares den
Blue prints, color swatch, pencil colors, sketches, plans and documents for a home renovation

Changes in Texas Lien Law: Design Professionals

Although the changes to Chapter 53 of the Texas Property Code, the statute governing Mechanic’s Liens in Texas, went into effect on January 1, 2022, questions still abound regarding the rights and responsibilities of project consultants on construction projects, i.e. architects, engineers, and the like. Below is primer on the changes to Chapter 53 and how they affect these specific individuals as well as a brief discussion on the changes to statutory retainage and lien law. For starters, Section 53.021 removes the requirement that an architect, engineer or surveyor provide services “under
The engineer talks to the contractor to supervise and plan the work.

Department of Labor Changes Employee Classification Test

The Department of Labor’s (DOL) 2024 rule regarding the classification of employees/independent contractors recently took effect on March 11, 2024. The rule officially repeals the DOL’s 2021 Independent Contractor Status Rule and returns to a “totality of the circumstances” approach. The Fair Labor Standards Act (FLSA) establishes minimum standards of employment such as minimum wage, overtime pay, record keeping, and youth employment. These standards extend to employers and employees as defined by the FLSA. However, the FLSA’s standards do not extend to independent contractors. Thus,