Dallas Gerstle Snelson, LLP Austin

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Feds Require Clean Concrete and Eco-Friendly Asphalt

On March 30, 2022, the General Services Administration (“GSA”) issued two new standards intended to address greenhouse gas emissions in the design and construction of federal projects. These are the first of many anticipated regulations that will be issued to reduce greenhouse gasses in the design and construction industries. The standards apply to all GSA projects, capital and small, and regardless of funding source.  For instance, they apply to paving upgrades, new construction, modernizations, and privately-financed projects.  Most significantly and immediately, they apply to the $3.4
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Lonergan is Dead, Long Live Lonergan

Lonergan, the much debated 1907 Texas Supreme Court opinion that the Court reaffirmed in its MasTecopinion in 2012, was overruled by the Texas Legislature in 2021 and codified as Chapter 59 of the Texas Business and Commerce Code (“Chapter 59”).  While the law became effective on September 1, 2021, exceptions and unanswered questions abound. The effect of Chapter 59 is to limit contractors’ liability for design defects when the contractor plays no part in the preparation of the design documents. Although Chapter 59 is brief and may seem to the point, it is important to familiarize yours
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The Economic Loss Rule, Affirmed Again

In White Star Pump Co., LLC v. Alpha Hunter Drilling, LLC (No. 14-20-00207-CV, 2021 WL 5707713, at *1 (Tex. App.—Houston [14th Dist.] Dec. 2, 2021, no pet.), the Fourteenth Court of Appeals affirmed the importance of the economic loss rule in Texas. At the trial level, the jury rejected a well operator, Alpha Hunger Drilling, LLC’s (“Alpha Hunter”) claims but for its negligent undertaking claim and awarded it $1.6 million for the market value of the pump and the loss of use of the pump. The Fourteenth Court of Appeals reversed and rendered a take-nothing judgment because Alpha Hunter
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Extrinsic Evidence Allowed for Duty to Defend

In a decision issued on February 11, 2022, the Texas Supreme Court opened the door a little wider (or a lot wider, depending upon whom you ask) for allowing use of extrinsic evidence in determining whether an insurer owes a duty to defend.  The decision marks a significant deviation from the strict eight corners analysis the Court has espoused for many years and will have significant implications on the construction industry in the coming years. In Monroe Guaranty Ins. Co. v. BITCO General Insurance Corp., David Jones (Jones) retained 5D Drilling & Pump Service (5D) in 2014 to drill a 360
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Project Labor Agreements for Federal Contractors

Last week, President Biden issued Executive Order 14063 (“EO 14063”), requiring Project Labor Agreements (“PLA”) for domestic federal construction projects with estimated construction costs of $35 million or more.  What are PLAs? How does this from President Obama’s prior executive order? And, are there exceptions to this requirement? A PLA is a form of collective bargaining that imposes wage and benefit requirements on construction firms competing for public contracts. The specific wages, benefits, and terms and conditions are imposed by local unions’ private collective bargainin