Dallas Austin

To void coverage, is it necessary for an insurer to prove that a policyholder had an intent to deceive when making material representations in an insurance application? The Texas Supreme Court has agreed to hear this issue, with potential widespread implications. In 2017, Sergio Arce applied for a life insurance policy with American National.  In response to a question on the application about whether he had ever been diagnosed with or treated for or given medical advice regarding hepatitis C, Sergio answered, no.  However medical records showed that Sergio was diagnosed with hepatitis C in

What lessons can members of the design and construction industry learn from the sudden and cataclysmic failure of FTX, the crypto-currency exchange? There are many, but we will focus on three of the most significant ones. On November 11, 2022, FTX and various related entities filed for Chapter 11 bankruptcy petition in Delaware.  In support of the Petition for Bankruptcy, John J. Ray, III, the newly appointed Chief Executive Officer the FTX debtors filed a declaration with the bankruptcy court. Among the conclusions Ray reached on his first day as CEO was the following. Never in my career hav

What happens to nuclear verdicts on appeal? The El Paso Court of Appeals recently issued a sobering opinion, overruling a $7 million verdict. In Claxton v. Rayner, Claxton’s windshield was hit by a portion of the load that Rayner was transporting on behalf of his employer, Even Better Logistics (EBL).   While Rayner was transporting an oversized load from Dayton to Abilene, he took the wrong exit and ended up on a route that was not part of his TxDOT required route.  The TxDOT route was selected because he was transporting an oversized load. Rayner allegedly did not realize he was on the

Attorney’s fees are a considerable expense in litigating construction disputes, whether you are plaintiff or defendant.  But, against whom are they recoverable and are they covered by insurance?  Recent changes to Chapter 38 of the Texas Civil Practice and Remedies Code (the “TCPRC”) significantly change the answer to this question. Recovering Attorney’s Fees Beyond Individuals or Corporations Unlike many other states, Texas creates a statutory right to recover attorney’s fees under certain circumstances.  Under that statute, Chapter 82 TCPRC, a party can recover attorney’s fee

On August 7, 2022, the Senate passed the Inflation Reduction Act of 2022 (“IRA 2022’). The IRA 2022 changes the current 179D tax deduction for energy efficient buildings in a few important ways that are relevant to the construction industry. Below is a breakdown of the current 179D tax deduction and the changes made by the IRA 2022. The Current 179D Tax Deduction The current 179d tax deduction, enacted by the Inflation Reduction Act of 2006 (“IRA 2006”) is still applicable to projects until the end of 2022. Per the IRA 2006, a tax deduction of up to $1.80 per square foot (currently $1.