Dallas Gerstle Snelson, LLP Austin

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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
Large Number of Cannabis Seedlings in Pots

Pot Contract Unenforceable

Is a contract between an employer and employee to pay the employee a $100,000 bonus for delivering a healthy harvest of 1,400 pounds of recreational pot enforceable? The Houston Court of Appeals recently held, no. In BRCC Enterprises LLC v. Jesse Skie, Skie sued his employer, BRCC Enterprises LLC, for breach of an oral contract made in Houston under which BRCC agreed to pay Skie a $100,000 bonus upon the healthy harvest of 1,400 lbs. of dry cannabis crop. Skie moved from Houston to Oregon and obtained state licenses to work on a marijuana farm. Among other things, he fenced the two-acre plot,