Dallas Gerstle Snelson, LLP Austin

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Attorney’s Fees Back

Generally, in Texas the right to be awarded attorney’s fees is limited to whether a contract or statute provides for the recovery of such fees.  Without a right by contract or statute each party is responsible for their own attorney’s fees and there is no right to shift those fees to the losing party.  Assuming there is a statute or contract which allows a party to recover fees, how do you determine which party has the right to recover its fees? In other words, what makes a party a “prevailing party”? On April 8, 2022 the Texas Supreme Court issued its opinion in Sunchase IV Homeown
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“As-Is” Means What it Says

When entering into an agreement, it is important to understand its terms and provisions. Some agreements contain provisions that fundamentally affect the nature of the parties’ contractual relationship. One such provision is an “as-is” provision, which provides that the acquiring party takes the subject property in the condition it is in. An “as-is” provision can potentially have a profound effect on a party’s rights and obligations, and as such, should be identified and considered carefully when determining whether to enter into an agreement. In Richard Uribe v. Briar-Ridge, LLC,
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Lonergan is Dead, Long Live Lonergan

Lonergan, the much debated 1907 Texas Supreme Court opinion that the Court reaffirmed in its MasTecopinion in 2012, was overruled by the Texas Legislature in 2021 and codified as Chapter 59 of the Texas Business and Commerce Code (“Chapter 59”).  While the law became effective on September 1, 2021, exceptions and unanswered questions abound. The effect of Chapter 59 is to limit contractors’ liability for design defects when the contractor plays no part in the preparation of the design documents. Although Chapter 59 is brief and may seem to the point, it is important to familiarize yours
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The Economic Loss Rule, Affirmed Again

In White Star Pump Co., LLC v. Alpha Hunter Drilling, LLC (No. 14-20-00207-CV, 2021 WL 5707713, at *1 (Tex. App.—Houston [14th Dist.] Dec. 2, 2021, no pet.), the Fourteenth Court of Appeals affirmed the importance of the economic loss rule in Texas. At the trial level, the jury rejected a well operator, Alpha Hunger Drilling, LLC’s (“Alpha Hunter”) claims but for its negligent undertaking claim and awarded it $1.6 million for the market value of the pump and the loss of use of the pump. The Fourteenth Court of Appeals reversed and rendered a take-nothing judgment because Alpha Hunter
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Megan Thee Stallion Makest an Album

Last month, Grammy-winning and platinum-record producing rapper Megan Pete, professionally known as Megan Thee Stallion (“MTS”), filed a lawsuit against her recording label, 1501 Certified Entertainment (“Label”), seeking a declaration that her most recent release, titled “Something for Thee Hotties,” constituted an “Album” as defined in MTS and the Label’s Recording Agreement (the “Agreement”). This scenario is another example of how even some of the most “basic” contract provisions need to be negotiated and clarified prior to execution of the contract. Even the most
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Extrinsic Evidence Allowed for Duty to Defend

In a decision issued on February 11, 2022, the Texas Supreme Court opened the door a little wider (or a lot wider, depending upon whom you ask) for allowing use of extrinsic evidence in determining whether an insurer owes a duty to defend.  The decision marks a significant deviation from the strict eight corners analysis the Court has espoused for many years and will have significant implications on the construction industry in the coming years. In Monroe Guaranty Ins. Co. v. BITCO General Insurance Corp., David Jones (Jones) retained 5D Drilling & Pump Service (5D) in 2014 to drill a 360
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Poisoning Your Boss and Free Speech

What does allegedly attempting to murder your boss (who happens to also be an attorney) and free speech have in common?  Apparently, not much according to the Austin Court of Appeals in Szymonek v. Guzman. At the time of the alleged attempted murder in 2019, Arturo Guzman, an attorney and solo practitioner, had employed Ashley Szymonek as his paralegal and “right-hand person” for about 10 years.  In that capacity, Szymonek acted as Guzman’s primary contact with the law firm’s bank, accountant, and insurance agent, using her personal email account for much of the firm’s electronic c