Dallas Gerstle Snelson, LLP Austin

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
Grain Silo Bins and Truck in Farm Field Agricultural Landscape

Property Damage in Texas under CGL Policies

What constitutes “property damage” that would invoke an insurer’s obligation to indemnify under a commercial general liability (CGL) insurance policy? In TIG Ins. Co. v. Woodsboro Farmers Cooperative, the 5th Circuit for the U.S. Court of Appeals, looking to the Texas Supreme Court opinions in U.S. Metals and Lamar Homes, provided some guidance in construction defect disputes. Woodsboro Farmers Cooperative (Woodsboro) contracted with E.F. Erwin, Inc. (Erwin) to construct two, 105-foot diameter grain silos. Erwin hired a subcontractor, AJ Constructors, Inc. (AJC), to construct the silo
Construction with cranes in Tokyo

Artificial Intelligence in Construction Quality Control

Artificial intelligence has made large inroads into various aspects of construction management, but has seemingly made less progress with on-site quality assurance and control measures. What research is being conducted on finding non-conformities or construction defects in real-time to avoid expensive, protected litigation after final completion? We take a deep dive. Reinforcing steel does not scream tech or AI, yet it has received a considerable amount of attention in recent research. To understand why, consider some of the factors and issues concerning installation of reinforcing steel. Stee
Wrightsville Beach Sunset

Indemnity, Standing and Stowers

What impact does a claim for contractual indemnity have on a Stowers demand? Does paying for a portion of a judgment give standing to an insurer in a subrogation claim for the entirety of the judgment? On appeal of a case we previously reported on, the Fifth Circuit answered these questions in a somewhat surprising fashion. In 2008, Lake Texoma Highport LLC sued Insurance Alliance for failing to procure the requested blanket coverage to insure its marina, which was damaged by heavy rainfall. Insurance Alliance was insured with a $5 million per claim professional liability policy from Westport
Non-compete agreement

FTC’s Non-Compete Ban Set Aside

What is the status of the Federal Trade Commission’s recent rule banning non-compete agreements as unfair competition? The United States District Court for the Northern District of Texas recently set aside the rule, preventing the rule from taking effect. As reported in a prior article, Ryan, Inc. and the US Chamber of Commerce filed suit to prevent the FTC’s non-compete ban from taking effect. On July 3, 2024, the Court granted a temporary injunction to prevent the rule from going into effect. On August 20, 2024, the Court granted Ryan’s and the US Chamber’s (now an intervenor in Ryan