On March 31, 2022, the United States Supreme Court issued an important decision regarding federal courts’ subject matter jurisdiction to confirm, vacate, or modify arbitral awards under Sections 9 and 10 of the Federal Arbitration Act (“FAA”). The issue was whether, in such proceedings, courts can use a ...

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Two Key Takeaways from the 35th Annual Construction Law Conference in Texas

Earlier this month, our firm was well-represented at the 35th Annual Construction Law Conference in San Antonio, Texas. As always, the conference presented great opportunities to visit with colleagues and other construction law practitioners throughout Texas, meet new friends, and to learn of recent legal ...

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Prime Contract Dictates Extent of Subcontractor Mineral Lien in Pearl Resources Case

On February 17, 2022, the Court of Appeals in El Paso, Texas reversed a summary judgment in favor of a mineral lien subcontractor claimant because, at the time the lien was filed, nothing further was owed under the prime agreement (Pearl Res. Operating Co. LLC v. Transcon Capital, LLC, No. 08-19-00288-CV, 2022 WL ...

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In September 2021, the Texas legislature made major changes to the construction lien statutes in Chapter 53 of the Texas Property Code. All of the key players in the construction industry (owners, contractors, subcontractors, suppliers, architects, engineers, landscapers, and sureties) are affected.  

This ...

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Texas Senate Bill 219, which governs liability for construction defects due to flaws in design documents, goes into effect on September 1, 2021. With a few exceptions, the statute will effectively wipe out the Texas Supreme Court’s long-standing Lonergan holding that absent contractual language to the ...

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The Texas Supreme Court Clarifies the Scope of the General Contractor’s Duty of Care to Subcontractor Employees

In a recent case, the Texas Supreme Court addressed the scope of the general contractor’s duty of care to its subcontractors’ employees on the project site.  In JLB Builders, L.L.C. v. Hernandez,[1] the Court upheld the trial court’s summary judgment in the general contractor’s favor and dismissed the ...

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Statutory v. Contractual Retainage on Texas Private Projects and the Contractual Retainage Notice

Statutory Retainage

Texas law obligates construction owners to withhold 10% of the value of the work during the course of a project and for 30 days after final completion. This is generally known as statutory retainage. Owners should memorialize their statutory retainage obligation in their construction ...

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Changing the Outside Limits: New Statutes of Repose for Government Design and Construction Claims Near Passage

As the end of the 87th Texas legislative regular session approaches, we appear to be on the verge of having new, shortened statutes of repose for design and construction claims by certain Texas governmental entities. This is important because statutes of repose “provide a definitive date beyond which an action ...

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A Cautionary Tale for Contractors: Releases in Contract Modifications and Preservation of Claims

The Houston First Court of Appeals of Texas recently affirmed a trial court’s decision wiping out a whopping $17 million claim brought by a contractor against an owner for acceleration costs, holding that the claim was barred by release language contained in a signed contract modification of the type routinely ...

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The Impact of New Texas Discovery Rules in Delay and Disruption Claims

Any lawsuit filed in Texas state courts on or after January 1, 2021 are now subject to the newly-amended Texas Rules of Civil Procedure.  Our litigation team has a helpful review of several of the most significant changes available here.  This post focuses on how the new rules, particularly the new disclosure ...

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