Federal Declaratory Action Cannot be Used to Determine Stowers Duty
Can an insurer seek to escape liability for denial of a settlement demand under the Stowers doctrine by filing a declaratory judgment action in federal court after the jury has already rendered a verdict in excess of the settlement demand and insurance policy limits? In July of 2024, we reported that at least one court thought that the insurer could. https://www.gstexlaw.com/policy-limits-demand-not-stowers-demand/ However, the United States Court of Appeals for the Fifth Circuit recently reversed that ruling.
As a refresher, in Golden Bear Insurance Company v. 34th S&S, L.L.C. d/b/a Concr
Curbing Nuclear Verdicts and Construction-related Bills the Texas Legislature is Considering
The 2025 Texas Legislative session is in full swing. What bills are the Texas Senate or House currently considering that potentially impact the construction industry? We discuss a few.
Securing Reserved Funds/Retainage. S.B. 1612 by Sen. Nathan Johnson/H.B. 3287 by Rep. Keith Bell. Under Texas’ lien laws, Chapter 53 of the Texas Property Code, non-public property owners are required to reserve 10 percent of the contract price until the completion of a construction project. Known as reserved funds (previously known as retainage), each payment application submitted by a contractor
Texas Supreme Court Says Follow-Form Excess Policy Not What it Says
Does a “follow-form” excess insurance policy mean that it must follow the form of the underlying, primary insurance policy? According to the Texas Supreme Court, not necessarily.
In The Ohio Casualty Insurance Company v. Patterson-UTI Energy, Inc. et al., the Texas Supreme Court examined whether a follow-form excess insurance policy must cover a policyholder’s defense costs after the primary insurance policies had exhausted. The coverage dispute arose from a drilling-rig incident that led to multiple lawsuits which the policyholder, Patterson, and its insurers settled after extensive lit
Artificial Intelligence Leads to More Sanctions
Is an empty head, but pure heart a legal defense to using generative artificial intelligence to do your work? For attorneys, the answer has been and continues to be, no. Two recent cases illustrate why.
In February 2025, U.S. Magistrate Judge Mark Dinsmore for the U.S District Court for the Southern District of Indiana in Mid Central Operating Engineers Health and Welfare Fund v. HoosierVac, LLC, recommended that Rafael Ramirez, a Texas attorney, be sanctioned $15,000 for relying entirely on generative AI to perform legal research. After the Magistrate Judge was unable to find a case that Ram
The End of the Private Practice of Law?
What happens when a big four accounting firm is given permission to own and operate a private law firm? We are about to find out.
For decades, only lawyers could own law firms. The American Bar Association drafted Model Rule 5.4 providing that, “a lawyer or law firm shall not share legal fees with a nonlawyer…,” and that, “a lawyer shall not form a partnership with a nonlawyer if any of the activities of the partnership consist of the practice of law.” The rule was intended to protect the sanctity of the third branch of government by maintaining lawyers’ independence and preventin
