Dallas Gerstle Snelson, LLP Austin

Smiling construction worker shaking hands with supervisor while standing in building in construction process.

Independent Contractors

Characterizing someone as an independent contractor or an employee can have significant monetary consequences.  Under the Fair Labor Standards Act (FLSA), employees are entitled to benefits including overtime pay and minimum wage. Independent contractors, however, are not. As a result, the distinction between an employee and an independent contractor can be an important determination for a business to make. Traditionally, courts have applied a multi-factor test, known as the economic realities test, to “determine whether, as a matter of economic reality, an individual is in business for him
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
Bundle Of Money, Judges Gavel And Soundboard On Wooden Table

Attorney’s Fees Back

Generally, in Texas the right to be awarded attorney’s fees is limited to whether a contract or statute provides for the recovery of such fees.  Without a right by contract or statute each party is responsible for their own attorney’s fees and there is no right to shift those fees to the losing party.  Assuming there is a statute or contract which allows a party to recover fees, how do you determine which party has the right to recover its fees? In other words, what makes a party a “prevailing party”? On April 8, 2022 the Texas Supreme Court issued its opinion in Sunchase IV Homeown
Business legal document concept : Pen and glasses on a lease agreement form. Lease agreement is a contract between a lessor and a lessee that allow lessee rights to use of a property owned by lessor

“As-Is” Means What it Says

When entering into an agreement, it is important to understand its terms and provisions. Some agreements contain provisions that fundamentally affect the nature of the parties’ contractual relationship. One such provision is an “as-is” provision, which provides that the acquiring party takes the subject property in the condition it is in. An “as-is” provision can potentially have a profound effect on a party’s rights and obligations, and as such, should be identified and considered carefully when determining whether to enter into an agreement. In Richard Uribe v. Briar-Ridge, LLC,
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