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Who decides whether a dispute is properly brought in court or arbitration? The Texas Supreme Court recently weighed in on this issue, holding that a contract referencing a standard set of arbitration rules evidences the parties’ intent to delegate the issue of “arbitrability” to an arbitrator. In Totalenergies E&P USA, Inc. v. MP Gulf of Mexico, LLC, MP Gulf and Total owned an oil-and-gas processing system servicing a group of oil-and-gas leases in the Gulf of Mexico. The parties agreed to create a “Common System” wherein the parties executed contracts governing multiple facets o

Is a transcript of an arbitration proceeding required to argue that the award should be vacated on appeal?  Matthew Rindt, a Partner at Gerstle Snelson, successfully argued to the Fort Worth Court of Appeals that vacatitur is not appropriate without one. In Spears Construction Management, LLC v. Physical Therapy Dynamics, PLLC, Spears Construction Management, LLC (Spears) entered into a contract with Physical Therapy Dynamics (PTD) to construct a physical therapy facility in Crowley, Texas (Project). The contract contained a binding arbitration clause, requiring any disputes between Spears an

What effect does limiting the amount of required insurance in a construction contract have on an insurer writing umbrella coverage?  The Texas Supreme Court recently considered this issue, answering that the limitation was not incorporated into the umbrella policy and was of no effect. The Court was very familiar with facts of the underlying dispute, ExxonMobil v. National Union Fire Insurance Company of Pittsburgh, PA, as it was the second coverage dispute the Court had heard and decided involving the same incident.  Exxon retained Savage Refinery Services (Savage) to perform work at Exxon&

Several new bills affecting the construction industry have been filed in the Texas Legislature’s current session, some of which have been filed and are in the process of being referred to committees. H.B. 2310 by Representative Canalas would require a plaintiff in a commercial construction defect cases, at the time the lawsuit it filed, to attach a sworn verification describing with particularity the alleged defects and the factual basis for why each defendant’s work is implicated.  If the pleading is insufficient, the defendant can ask that the lawsuit be dismissed. If the court finds th

The Texas Legislature has started its 88th Regular Session and as of January 23, 2023, more than 2,150 bills and joint resolutions have been filed.  We examine a few bills that are of particular interest to the design and construction industry. SB 283 – Relating to requiring workers’ compensation coverage for employes of building and construction contractors and subcontractors Summary: Would require all contractors and their subcontractors for a public work project to be covered by workers compensation insurance. HB 1054 – Requiring classification of certain construction workers with th