Dallas Gerstle Snelson, LLP Austin

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$12 Million Nuclear Verdict Reversed Because Race and Gender Arguments

In May 2024, the Texas Supreme Court in Alonzo v. John overturned a $12 million jury verdict because Plaintiffs’ counsel made incurable arguments to the jury. The personal injury case stemmed from a 2012 car accident where Defendant, Robert Alonzo, rear ended a couple in his tractor trailer.  One of Plaintiffs in the case was an African American woman.  Alonzo and his employer, New Prime Inc., admitted liability prior to trial.  As a result, the trial was simply to determine the amount of damages to be awarded to Plaintiffs. At the 2020 trial, defense counsel argued that Lewis, an African
A crowded concert hall with scene stage orange and yellow lights, rock show performance, with people silhouette, colourful confetti explosion fired on dance floor air during a concert festival

City Not Liable for Breach of Verbal Contract

Is a Texas city liable for breach of a verbal contract? The Corpus Christi Court of Appeals in City of Pharr v. Garcia recently answered the question, no. How did this happen and what is the significance to construction contractors in Texas? In Garcia, Pajaro Promotions sued the City of Pharr alleging that the City failed to pay expenses and a 20% promotor’s fee associated with a Toby Keith concert at the City’s convention center. The City argued that Pajaro’s claims were barred due to sovereign immunity. When the trial court denied the City’s plea to the jurisdiction, the City filed a
Insurance policy with pen and folder.

Policy Limits Demand not Stowers Demand

When is a policy limits demand insufficient to invoke the Stowers doctrine? The U.S. District Court for the Southern District of Texas in Golden Bear Insurance Co. v. 34th S&S, LLC d/b/a Concrete Cowboy et al. recently held that plaintiffs’ settlement demand did not meet the requirements of the Stowers  doctrine and, therefore, did not expose the insurer to extracontractual damages. Under the nearly 100-year old Stowers doctrine, an insurer may be liable for damages in excess of its policy limits (extracontractual damages) for negligently failing to settle a third-party claim that resul
Spring storms and rain in Midwest caused flooding and soil erosion in farm fields

$660,000 Water Code Violation Affirmed on Appeal

What is “surface water” and how can diverting it create liability under Texas law?  In Good River Farms, L.P. v. TXI Materials, L.P., the United States Court of Appeals for the Fifth Circuit, interpreting Texas law, recently answered these questions. In October 2017, Good River Farms, L.P. (Good River) filed suit against TXI Operations, L.P. and Martin Marietta Materials, Incorporated (Martin Marietta) asserting claims for nuisance, negligence, and violations of the Texas Water Code. The dispute between Good River and Martin Marietta stemmed from a “120-year flood” that occurred near
Freedon of Speech

Texas Supreme Court Upholds Insurance Adjuster Statute

The Texas Supreme Court, in Texas Department of Insurance v. Stonewater Roofing, Ltd. Co., affirmed the licensing requirements for public adjusters and the prohibition of public adjusters to also act as repair contractors. How did the Court reach this opinion and what impact will it have on the construction industry? In Stonewater, a commercial customer of Stonewater Roofing Ltd. Co. (Stonewater) sued Stonewater for violating the Public Insurance Adjusters Act (“Act”), Texas Insurance Code Chapter 4102. Stonewater then filed a declaratory judgment action against the Texas Department of Ins