Dallas Gerstle Snelson, LLP Austin

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Ignorance is not Bliss: Hints for Handling Unforeseen Site Conditions

Unforeseen site conditions can entirely disrupt an ongoing project or prevent it from it getting off the ground in the first place. Apart from the time impacts unforeseen site conditions can wreak on a project, they also can wind up costing owners and contractors substantial amounts of money.  Much of Texas’s case law interpreting unforeseen site condition provisions derive from the seminal Texas Supreme Court case of Lonergan v. San Antonio Loan and Trust Company. In Lonergan, the contractor constructed a building according to plans and specifications developed by an owner-retained archite
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Deluxe Apartment in the Sky? Condos and Right-to-Repair in Texas

What rights do contractors have to inspect and repair alleged defects in projects?  How are those rights exercised and preserved? Recent events have breathed newfound urgency into these questions. The unparalleled construction activity in the State over the past decade combined with the rapid deceleration of the national economy due the novel coronavirus pandemic promises to bring an uptick in claims relating to construction defects, alleged or real.    The answers depend, in part, on the nature of the project.  For residential construction, which includes pools and condominiums, at least
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Punxsutawney Phil: Product Liability In Construction Projects

In many ways, the COVID-19 pandemic resembles the movie, Groundhog Day.  The endless stay-at-home days that blend together anonymously aside, one déjà vu legal issue is the prospect of increased claims relating to not-yet-completed as well as completed projects.  The proliferation of the use of novel and proprietary construction building materials assures that product liability claims will be part of many construction disputes. In Texas, product liability claims are governed by case law and a statute, Chapter 82 of the Texas Civil Practice & Remedies Code (Chapter 82).  As we enter un
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Back To Work: 4 Employment Considerations Under The Families First Act

As more and more Texas businesses re-open and adjust to the new normal, it is easy to forget that COVID-19-specific orders and statutes, like the Families First Coronavirus Response Act (FFCRA), still apply.  The FFRCA is effective through the end of 2020.  Under certain circumstances, the FFCRA requires an employer to continue some or all of the employee’s wages through Emergency Paid Leave or Extended Leave. For more specifics about paid leave and extended family leave under FFCRA, please refer to our previous post on this topic. Here are some further considerations to remember about FFC
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Anatomy Of A COVID-19 Unsafe Workplace Lawsuit

What does a COVID-19 unsafe workplace lawsuit look like?  We did not have to wait long to find out.  Just a few months into the pandemic, one of the first such lawsuits has been brought in Dallas County, Texas.  On April 30, 2020, the spouse of a Dallas meat plant worker who died from coronavirus sued her late-husband’s employer for claims of negligence and wrongful death in Parra and Dominguez v. Quality Sausage Company, LLC.  The Dominguez case raises some extremely difficult practical and legal questions such as how does an employer execute its responsibilities to create a safe workpl
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What Goes Up (Must Come Down): Escalation Clauses In A Pandemic Era

Depending on which news channel you subscribe to, we are entering an era of inflation or deflation or a Goldilocks economy.  One view is that disruption to global supply chains will lead to rapid price escalation which in tandem with a loose monetary policy by almost every developed country in the world, will lead to a large increase in prices of basic commodities and fabricated products.   Another and completely different view is that mass unemployment will suffocate demand which in tandem with the exact same loose monetary policies will result in large decreases in prices of basic commodit
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The Gambler: Waiver of Consequential Damages

Consequential damages—the types, magnitude, recoverability—can be a gamble.  A waiver of consequential damages clause is one way to hedge that bet.  In the COVID-19 era and looming recession, business interruption and other forms of consequential damages can magnify losses attributable to design or construction defects.  Waivers of consequential damages are one effective tool to contain and minimize this risk. 1.    You have to know when to hold ‘em, know when to fold ‘em Looking at Atlantic City, NJ today, it is hard to fathom that it was once a rival to Las Vegas.  Yet, our jou