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In November, 2024, a U.S. Bankruptcy Judge in Houston dismissed two lawsuits filed by several insurance companies against Zachry Holdings Inc. and its joint venture partners, ruling that the waiver of subrogation clause in the construction contract barred the lawsuits, robbing the insurers of standing to sue. Shortly after Zachry filed bankruptcy in May 2024, the insurers filed the lawsuits arising out of a June 2022 explosion at the LNG Freeport liquified natural gas facility located on the Gulf of Mexico. According to a report issued by the U.S. Pipeline and Hazardous Materials Safety Admini

Does a land developer owe a duty to set minimum slab elevations to prevent flooding during a foreseeable weather event? In Jason Alexander, et al. v. The Woodlands Land Developer Company L.P., The Howard Hughes Corporation, LJA Engineering, Inc. F/K/A LJA Engineering & Surveying, Inc., and James R. Bowles, the Houston Court of Appeals (First District) answered this question, no. In August of 2017, the Gulf Coast of Texas was decimated by the Category 4 storm, Hurricane Harvey, marking one of the most devastating natural disasters in U.S. history. The Houston area was one of the several cit

Does an insurer of a commercial general liability policy owe a duty to defend an architect in a malpractice lawsuit? The US Court of Appeals for the Seventh Circuit recently held, yes. We provide a roadmap for the Court’s controversial decision. In Cornice & Rose International, LLC v. Acuity, Cornice, an architectural firm based in Illinois, was retained to design and oversee construction of a building in Iowa. According to the contract between Cornice and the building’s owner, Cornice agreed to, among other services, prepare drawings and specifications detailing the quality levels of

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

Under Texas premises liability statute, Chapter 95 of the Texas Civil Practices and Remedies Code, when does a property owner have “actual knowledge” of a danger or condition that causes damages for which it is liable? The Texas Supreme Court case recently provided some guidance. In John Paniagua, et. al. v. Weekley Homes, Weekley hired Leobardo Maravilla, an independent contractor, to install siding and perform cornice work on townhomes in a residential development in Dallas. Leobardo’s work crew included his brother Jose Camerino Maravilla and John Paniagua. The project worksite includ

In footnote 71 of the titular construction law case Zachry Construction Corp. v. Port of Houston Authority of Harris County, which primarily focused on the enforceability of no damages for delays clauses, the Texas Supreme Court wrote: “Delay damages are consequential damages.” The Court then left it at that, with no more discussion or analysis of why it considered delay damages to be consequential damages. Therefore, whether or not delay damages are actually consequential damages or are in fact direct damages is still less than clear. There are arguments going in both directions and given

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