Dallas Austin

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

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

On May 1, 2020, the Texas Supreme Court recognized its first exception to the eight-corners rule regarding an insurer’s duty to defend.  Given the significant interplay between insurance and many types of construction related disputes, the exception is noteworthy, even if narrow in its application. 1.    What is the eight-corners rule? One of an insurance company’s primary duties towards an insured is a duty to defend the insured against claims or suits seeking damages covered by the insurance policy.  For instance, an insurance company that issues a commercial general liability policy

Few parties are happy when the surety rolls into town as it typically means the construction project has gone awry.  The owner faces a project that may not be complete within the contract time or price.  The general contractor may face bet-the-company liability and the underlying owners of the contractor certainly face personal liability to the surety for amounts expended.  The subcontractors face potential payment delays and financial hardship.  And, of course, the surety faces potentially significant financial responsibility to pay claims or complete the project or both. Even during norm

Delay damages are the guests who show up uninvited for Thanksgiving dinner, tolerated, but not wanted.  No matter how high you set the temperature of the thermostat to make the guests uncomfortable and make them want to leave, they stay.  And stay.  And stay some more. Over the past several years, severe labor shortages in subcontracted trades have forced delays in critical paths of many projects.  The novel coronavirus and COVID-19 pandemic have made matters more acute.  Some projects have been shut down altogether, potentially giving rise to arguments that performance is impossible, imp