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
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
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
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
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
Revised COVID-19 Safety Protocols
It has been a long two years since the pandemic began, but with COVID-19 transmission rates and hospitalizations dropping, the Centers for Disease Control and Prevention (CDC) has begun to relax some of its guidance and protocol for COVID. What does that mean for the employer? And what’s next?
While the intent of the guidelines is to encourage individuals and employers to return to more “normal” office environments, the CDC is still recommending vigilance, though at a much reduced level, as follows.
1. Revised Isolation guidelines for Employees/Individuals who Test Positive for COVID
Project Labor Agreements for Federal Contractors
Last week, President Biden issued Executive Order 14063 (“EO 14063”), requiring Project Labor Agreements (“PLA”) for domestic federal construction projects with estimated construction costs of $35 million or more. What are PLAs? How does this from President Obama’s prior executive order? And, are there exceptions to this requirement?
A PLA is a form of collective bargaining that imposes wage and benefit requirements on construction firms competing for public contracts. The specific wages, benefits, and terms and conditions are imposed by local unions’ private collective bargainin