Dallas Gerstle Snelson, LLP Austin

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Buyer Beware: 3 Subcontractor Insurance Traps for the Unwary

Red flags abound.  First, the project owner insists that you use a particular subcontractor, even though you have never used or heard of that subcontractor.  Second, the subcontractor does not have sufficient capitalization or expertise to perform the work.  Third, the subcontractor sends you a certificate of liability insurance listing an insurance company that sounds vaguely, but not entirely, familiar. None of these red flags mean much until a claim is asserted relating to the subcontractor’s work.  That’s when many in the construction industry receive an unwelcome refresher course
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The Chamber of (Moldy) Secrets: Case Note: Potter v. HP Texas 1 LLC, et al.

The Dallas Court of Appeals recently revisited the meaning of “as-is” provisions in real estate transactions, affirming that properly drafted “as is” clauses may provide a basis for summary disposition of a case.  Steve Snelson and Maria Moffatt of our firm represented the contractor, CGC Construction, in the underlying case and on appeal. In Potter, the Potters sued for personal injury damages arising from alleged exposure to mold in a rent-to-buy house that they occupied.  HP Texas 1, LLC (HPA) owned the house and leased it the Potters.  HPA retained a third-party inspection compa
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Que Sera, Sera: Case Note: Capano Energy, LLC v. Bujnoch, et al.

We have litigated some very strange “contracts”, including a construction contract comprised of a series of text messages.  And while we await the day when a party alleges a contract was formed via Instagram posts, the Texas Supreme Court has recently provided some guidance on whether a series of emails (dinosaur technology, I am told by my kids) can comprise a binding contract. The “contract” at issue in Capano Energy was an easement for a gas pipeline. In 2011, Plaintiffs granted Capano a 30-foot wide easement across their properties for installation and maintenance of a 24-inch gas
Home Building

The Impossible Dream – Case Note: EM Building Contract Services v. Byrd Building Services

Is a subcontractor’s performance made impossible by a designer’s incomplete plans or the defective work of another subcontractor? Under those circumstances, is the subcontractor legally discharged from performing its contractual obligations?  The Dallas Court of Appeals, in a lengthy opinion, recently addressed this issue. In EM Building Contractor Services, LLC v. Byrd Building Services, LLC, Byrd, a general contractor, filed suit against EM Building, a drywall subcontractor, over three separate hotel projects located in Texas.  After EM Building failed to meet project schedule, failed
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Case Note: Taking a Haircut on COVID-19 Business Interruption Claims

Are lost profits associated with local shelter-at-home orders recoverable under a property insurance policy? At least one court, the US District Court for the Western District of Texas, has ruled they are not. 1.    Non-Essential Businesses In Diesel Barbershop, LLC v. State Farm Lloyds, 2020 WL 4724305 (W.D. Tex., San Antonio Div.), several hair salons were forced to close due to their being categorized as non-exempt businesses under Bexar County’s Shelter-at-Home Order and as non-essential businesses under one of Governor Abbott’s Executive Orders.  Diesel and the other companies file