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What happens when a clause in a construction purchase order conflicts with a similar, but not identical clause in a quote made part of the order?  The Houston Court of Appeals recently addressed this issue in the context of dueling arbitration clauses, voiding both of them. In Links Constr., LLC v. United Structures of America, Inc., the University of North Texas hired Links Construction, LLC (“Links”) to oversee construction of an indoor practice facility. Links subcontracted with United Structures of America (“United”) to design and provide materials for the roof using an executed P

Texas public policy has long favored freedom of contract. By in large, Texas courts will uphold what the parties bargained for in the contract. Of course, the parties negotiating the contract are in the best position to allocate risk as they see fit. However, there are several Texas statutes that cannot be waived or otherwise altered, thereby overriding, to some extent, the parties’ freedom of contract. A few notable examples of such “statutory overrides” impacting the construction industry are discussed below. Shortening the Statute of Limitations Under Texas Civil Practice and Remedies

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.

In late July, a Dallas jury awarded the Estate of Betty Thomas $7 billion in punitive damages on top of the $375 million in actual damages it awarded one month earlier.  How did this happen and what happens next? In December 2019, Roy James Holden, an employee of Charter Spectrum, a cable company, paid a service call to Thomas’s house.  The next day, “broke”, “hungry” and off-duty, Holden returned to Thomas’s house driving a Spectrum van and dressed in his service uniform.  Holden stabbed Thomas to death using a Spectrum utility knife and wearing company issued gloves, leaving h

COVID-19 silently infects and can be lethal. Monkeypox infects but leaves a distinct mark, a pock.  While both create challenges for employers, the visible emergence of monkeypox requires revisiting lessons from the earliest stages of the COVID-19 pandemic to prevent claims of employment discrimination. Monkeypox virus presents an emerging problem for employers. Cases are increasing in Texas and nationwide. Several counties and cities in Texas have or are considering declaring monkeypox a public health emergency. The monkeypox virus is a relative of smallpox and causes systemic symptoms, incl

Is a wrongful death claim brought by the estate of an erotic dancer subject to binding arbitration? The Texas Supreme Court recently weighed in on this issue. In Baby Dolls Topless Saloons, Inc. v. Sotero, an erotic dancer, Stephanie Sotero Hernandez, was killed in a tragic crash while riding in a car driven by a coworker after they left work at Baby Dolls Topless Saloon. Hernandez’s family filed a wrongful death lawsuit against Baby Dolls, alleging that Baby Dolls continued to serve Hernandez’s coworker alcohol knowing she was intoxicated. In response to the lawsuit, Baby Dolls moved to c

In a recent opinion, the Texas Supreme Court reaffirmed the law school warhorse of Hadley v. Baxendale, an 1865 case from England, holding that consequential damages must be foreseeable to be recoverable.  In Signature Industrial Services v. International Paper Co., the principal issue was whether Signature Industrial Services (Signature) was entitled to recover consequential damages for breach of a construction contract. Signature had a contract with International Paper (IP) to upgrade a slaker—a large vessel that recycles chemicals used to make paper—at IP’s paper mill in Orange, Texa