Dallas Gerstle Snelson, LLP Austin

Selective focus of magnifying glass,glasses and Insurance Policy letter on a white wooden background.

No Standing for Additional Insured

A Texas federal court recently held that an additional insured lacked standing to file an independent claim against an insurer.  In Antares Underwriting, Ltd. v. Magellan E&P Holdings, Magellan entered into an Emergency Agreement with Great White Well Control (“GWWC”) to provide well control services.  The Agreement had an effective date of September 1, 2020. Antares Underwriting Limited (“Antares”) issued an energy policy to Magellan with a policy term of June 30, 2020 to June 30, 2021.  When GWWC made a claim for additional insured coverage under the energy policy, Antares den
Non-Compete Clause with Gavel and Books

Non-Compete Ban Spawns Lawsuits

On April 23, 2024, the Federal Trade Commission (FTC) issued its final version of Rules Concerning Unfair Methods of Competition (Rule).  The Rule becomes effective 120 days after being published in the Federal Register.  Almost immediately, two separate lawsuits were filed in Texas seeking to stay enforcement of the Rule and a finding that the FTC exceeded its authority in issuing the Rule.  Why all the fuss? The Rule, only 9 pages long, is preceded by 560 pages of commentary and justification by the FTC, perhaps foreboding the Rule’s significance and controversy. The Rule bars an employ
The chemical engineer working the late night shift at the petroleum oil refinery in an industrial estate. Chemical engineering, fuel and power generation, petrochemical factory industry concept

Verdict Vacated Over Borrowed Worker Doctrine

Michael Chiles was working at an oil and gas processing facility in West Texas when pressurized fluid unexpectedly shot out of the end of a hose he was carrying. Chiles was thrown to the ground and taken to the hospital shortly thereafter, where he was diagnosed with a torn rotator cuff that required two separate surgeries to repair. Chiles sued Priority Artificial Lift Services, LLC (“Priority”) and EP Energy E&P Company, L.P. (“EP Energy”) for damages caused by the incident. The parties proceeded to trial and the jury returned a verdict finding Priority and EP Energy liable for C
Compliance rules and law regulation policy concept.

Lawsuit Impacts Corporate Transparency Act

On January 1, 2024, an important change in the Corporate Transparency Act (“CTA”) took effect. This change created ownership reporting requirements for private companies. Specifically, all entities, except sole proprietorships, some general partnerships, wealth planning trusts, unincorporated entities, and foreign entities not registered to do business in the United States, have to report to the federal government who the beneficial owners of the entity are. A beneficial owner includes anyone who exercises substantial control over the entity or owns or controls twenty-five percent or more
Equality Of Races

$70 Million Verdict Reversed on Post-Trial Motions

In March 2024, the US District Court for the Eastern District of Texas in the matter of Yarbrough v. Glow Networks, Inc. overturned a $70 million employment discrimination verdict and ordered a new trial for two claims relating to only two specific Plaintiffs.  How did this happen? In December 2019, fourteen former employees of Glow Networks, Inc. (“Glow”), 13 of whom are Black, filed suit against their former employer for racial discrimination in the workplace. All Plaintiffs but one alleged racial discrimination based on tangible actions and/or a hostile work environment. Some Plaintiff
Blue prints, color swatch, pencil colors, sketches, plans and documents for a home renovation

Changes in Texas Lien Law: Design Professionals

Although the changes to Chapter 53 of the Texas Property Code, the statute governing Mechanic’s Liens in Texas, went into effect on January 1, 2022, questions still abound regarding the rights and responsibilities of project consultants on construction projects, i.e. architects, engineers, and the like. Below is primer on the changes to Chapter 53 and how they affect these specific individuals as well as a brief discussion on the changes to statutory retainage and lien law. For starters, Section 53.021 removes the requirement that an architect, engineer or surveyor provide services “under
The engineer talks to the contractor to supervise and plan the work.

Department of Labor Changes Employee Classification Test

The Department of Labor’s (DOL) 2024 rule regarding the classification of employees/independent contractors recently took effect on March 11, 2024. The rule officially repeals the DOL’s 2021 Independent Contractor Status Rule and returns to a “totality of the circumstances” approach. The Fair Labor Standards Act (FLSA) establishes minimum standards of employment such as minimum wage, overtime pay, record keeping, and youth employment. These standards extend to employers and employees as defined by the FLSA. However, the FLSA’s standards do not extend to independent contractors. Thus,