Dallas Gerstle Snelson, LLP Austin

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Executive Order regarding Artificial Intelligence

On the heels of many tech industry leaders voicing concern about the increasing sophistication of artificial intelligence (AI) and the singularity of AI, President Biden recently signed an Executive Order creating some ground rules for the development, testing and use of AI. The October 30, 2023, Executive Order creates reporting requirements, seeks to protect Americans’ privacy, and seeks to prevent AI from being used for discriminatory purposes. On the reporting side, for example, the Order requires American companies developing any foundation model that poses a serious risk to national se
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Property Damage Not Compensable

Is a city liable for destroying a private residence in the process of releasing a hostage and preventing her captor from inflicting harm to others?  Citing case law from 1788, the United States Court of Appeals for the Fifth Circuit recently held, no. On July 25, 2020, Deanna Cook, was staying at house of her mother, Vicki Baker, in McKinney, Texas, preparing the house for sale.  Baker’s dog was also present at the home. That morning, Cook saw a Facebook post that Wesley Little was on the run with a 15-year-old female “runaway.” Cook recognized Little because he has worked on Baker’s
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Copyrights for Schematic Drawings

What is the impact of granting a license to a property owner to use a set a schematic drawings?  The United States Court of Appeals for the Fifth Circuit recently answered this question in Loeb-Defever v. Mako, LLC. In Mako, Pauda Realty requested Loeb Architects, LLC to prepare a design for an assisted living facility in Conroe, Texas.  Pauda and Loeb subsequently entered into two separate service contracts each of which contained a limitation that schematics could not be used on other projects except by agreement in writing and with subsequent compensation to Loeb. After Loeb partially com
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ERCOT and Sovereign Immunity

Does the Electric Reliability Council of Texas (ERCOT) liability for the catastrophic effects of Winter Storm Uri in 2021? More than two years after the storm, the Texas Supreme Court has answered the question, no. On June 23, 2023, the Texas Supreme Court in a divided 5-4 opinion held that ERCOT is entitled to sovereign immunity, concluding that ERCOT is an “arm of the state” because it is under the complete purview of the Texas Public Utility Commission (PUC), the Legislature, and the statutory requirements of the Public Utility Regulatory Act (PURA). The two cases the Court conside
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ChatGPT Sanctions

In the age of artificial intelligence and expanding technology, the advancements are endless, but does AI have the capacity to practice law? The apparent answer is no, at least not without exhaustive checking by an attorney. On June 22, 2023, a Federal District Judge in New York sanctioned two attorneys and their law firm, jointly, because one attorney, who was not licensed to practice law in the New York Federal Court, relied on responses from ChatGPT with made-up case law and citations in preparing his response to a motion to dismiss, and the other attorney, who was licensed to practice in t