Dallas Gerstle Snelson, LLP Austin

Texas Senate Chamber

2025 Legislative Update

The Texas Legislature went into Session on January 14th until June 2nd.  There are numerous bills filed which have a general interest such as ad valorum tax revisions and school finance.  This review of recently filed bills will focus on potential legislation which could be of interest to the construction industry. Administrative Law  HB 606 – De Novo Review and Interpretation of State Laws and Agency Rules by Reviewing Court Judges Summary: HB 606, filed by Rep. Brian Harrison (R – Midlothian), would require a judge or administrative law judge (ALJ) to interpret a statute, rule, or ot
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Duty to Defend Against Design Defects under CGL Policy

Does an insurer of a commercial general liability policy owe a duty to defend an architect in a malpractice lawsuit? The US Court of Appeals for the Seventh Circuit recently held, yes. We provide a roadmap for the Court’s controversial decision. In Cornice & Rose International, LLC v. Acuity, Cornice, an architectural firm based in Illinois, was retained to design and oversee construction of a building in Iowa. According to the contract between Cornice and the building’s owner, Cornice agreed to, among other services, prepare drawings and specifications detailing the quality levels of
Texas State Capitol Building in Austin, 3/4 view

2025 Texas Legislative Preview

In anticipation of the upcoming 2025 Texas Legislative Session, bills are starting to be filed.  Just because a bill is pre-filed does not mean that it might ultimately be passed or even considered.  According to the Texas Construction Association, the following are some of the areas on which bills will be filed. Securing Reserved Funds/Retainage.   Increase security for reserved funds by amending the Construction Trust Fund Act to statutorily classify reserved funds as trust funds. Documents Incorporated by Reference into Construction Contract.  Amend the Business & Commerce Code to
Lightning Storm in Night Sky Above Houses

Court Clarifies Property Owner Liability for Construction Accident

Under Texas premises liability statute, Chapter 95 of the Texas Civil Practices and Remedies Code, when does a property owner have “actual knowledge” of a danger or condition that causes damages for which it is liable? The Texas Supreme Court case recently provided some guidance. In John Paniagua, et. al. v. Weekley Homes, Weekley hired Leobardo Maravilla, an independent contractor, to install siding and perform cornice work on townhomes in a residential development in Dallas. Leobardo’s work crew included his brother Jose Camerino Maravilla and John Paniagua. The project worksite includ
Man holds FLSA fair labor standards act.

Employee v. Independent Contractor under FLSA

Who is entitled to protection, including overtime pay, under the Fair Labor Standards Act (“FLSA”)? In Guillermo Gray v. Killick Group, LLC, the 5th Circuit U.S. Court of Appeals recently held that a welding inspector was properly characterized as an independent contractor and not entitled to overtime or any other protections or benefits of the FLSA. How did the Court reach its decision? Guillermo Gray, a welding inspector, sued Killick Group, LLC (“Killick”) alleging that Killick violated the FLSA by not paying him wages and overtime. The suit was originally brought in state court but