Dallas Gerstle Snelson, LLP Austin

Aerial view of a high voltage substation.

Pre-Contract Verbal Representations not Actionable

When can you sue over verbal representations made before a written contract is signed?  In Roxo Energy Company, LLC v. Baxsto, LLC, the Texas Supreme Court considered allegations of fraud based on oral representations in the context of a complex oil and gas deal, and found the representations were not actionable. Roxo Energy Company, LLC v. Baxsto, LLC, Baxsto, LLC (Baxsto) sued Roxo Energy Company, LLC (Roxo) for alleged oral representations made by Roxo while negotiating a lease and ultimate sale of mineral rights. Baxsto asserted fraud claims against Roxo, including fraud, fraudulent induc
A glass of whisky and a set of car keys on a wooden table

Supreme Clarifies Evidence Needed for Dram Shop Liability

Almost every party host—whether employer, bar or restaurant owner, or neighbor—at some point wonders whether one or more guests have had too much to drink and whether those guests can safely drive home. The Texas Supreme Court recently provided guidance on what evidence is necessary to establish liability for the hosts. In Texas, a provider of alcohol can be held liable if the provider sells or serves alcohol to a customer and the provision of that alcohol causes harm to the plaintiff. However, the provider can only be held liable if it was apparent, to the provider, at the time of the pro
Lease Agreement

Wrongful Termination of Lease for Alleged Construction Defects

Is a tenant justified in terminating a lease for a build-to-suit building when unidentified odors prevent beneficial occupancy? In Wise Development, LLC v. General Services Administration, the United States Civilian Board of Contract Appeals (CBCA) recently held, no. How did the CBCA reach that conclusion and what lessons does it provide for other projects in the federal government and civilian sectors? In Wise Development, the GSA entered into lease with Wise a build-to-suit, single tenant building in Hickory, North Carolina for use as a service center by the U.S. Social Security Administrati
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Federal Declaratory Action Cannot be Used to Determine Stowers Duty

Can an insurer seek to escape liability for denial of a settlement demand under the Stowers doctrine by filing a declaratory judgment action in federal court after the jury has already rendered a verdict in excess of the settlement demand and insurance policy limits? In July of 2024, we reported that at least one court thought that the insurer could. https://www.gstexlaw.com/policy-limits-demand-not-stowers-demand/ However, the United States Court of Appeals for the Fifth Circuit recently reversed that ruling. As a refresher, in Golden Bear Insurance Company v. 34th S&S, L.L.C. d/b/a Concr
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Curbing Nuclear Verdicts and Construction-related Bills the Texas Legislature is Considering

The 2025 Texas Legislative session is in full swing. What bills are the Texas Senate or House currently considering that potentially impact the construction industry? We discuss a few.  Securing Reserved Funds/Retainage.  S.B. 1612 by Sen. Nathan Johnson/H.B. 3287 by Rep. Keith Bell.   Under Texas’ lien laws, Chapter 53 of the Texas Property Code, non-public property owners are required to reserve 10 percent of the contract price until the completion of a construction project. Known as reserved funds (previously known as retainage), each payment application submitted by a contractor