Dallas Austin

Do arbitration agreements in home construction contracts run with the land? The Texas Supreme Court recently answered this question affirmatively, binding a subsequent buyer to arbitration. In Lennar Homes of Texas Land and Construction, Ltd., et al. v. Kara Whitely, Kara Whitley filed suit against Lennar alleging negligent construction, breach of warranties and DTPA claims regarding a house she had purchased from the original buyer.  Lennar built the house in Dickinson, Texas and sold it to the original buyer in 2014. At the time, Lennar conveyed the house and property via special warranty d

A Dallas jury recently awarded over $6 million to a homeowner’s association for repairs to its property.  Whether the verdict stands or falls will depend in part on how the Judge interprets the pre-suit notice and offer provisions of Texas Residential Construction Liability Act (RCLA), a Texas statute governing construction defects in residential construction and the Texas Deceptive Trade Practices—Consumer Protection Act (DTPA). In Avalon Square Homeowners Association v. K. Hovnanian Homes – DFW, LLC, the Avalon Square Homeowners Association (Association) filed a lawsuit against the bu

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

Last month, a Texas jury found that FedEx Corp. retaliated against a former employee and awarded the former employee $365 million in punitive damages, $120,000 for past pain and suffering, and $1.04 million for future mental anguish. The jury was apparently more disturbed about retaliation for reporting racial discrimination than the alleged discrimination, itself, finding no discrimination had occurred. Jennifer Harris, an African American woman, started working for FedEx in 2007 as an entry-level sales representative. For nearly a decade, she was a rising star at the company, receiving sever

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

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

When does an “as-is” sale support of claim of deceptive trade practices? A recent case from the Austin Court of Appeals provides some insight as well as a cautionary tale to anyone selling a property requiring repair. In Christians v. Flores, Flores sued Christians regarding the “as-is” purchase of a home located in Austin, Texas, asserting that Christians failed to disclose issues with the home’s roof.  Prior to the sale of the property, the roof was damaged by a hailstorm. A roofer who visited the house testified at trial that a storm had damaged the roof beyond repair and needed