Dallas Gerstle Snelson, LLP Austin

Cars on assembly line in plant

Property Owner Not Liable for Contractor’s Injury

Is a property owner liable for an electric shock injury to an independent contractor working on its premises? The Fifth Circuit Federal Court of Appeals recently held, no. In Rose v. Nissan, North America, Inc., Rose allegedly sustained injuries arising from an electric shock in April 2022 while working as an employee of Automated Power, Inc. (“Automated Power”), an independent contractor to Nissan. Nissan had hired Automated Power to repair a partial outage at its Canton, Mississippi car manufacturing plant in March 2022. Rose argued that Nissan controlled “access” to a cubicle area w
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
Inverted piggy bank, spilled gold coins. Opening piggy bank. Waste of accumulated money.

Appeal Dismissed Regarding Federal Minimum Wage

On March 28, 2025, the United States Court of Appeals for the Fifth Circuit dismissed a challenge to Former President Biden’s Executive order increasing the minimum wage for federal contractors to $15 per hour (or $17.75 per hour at the time of the decision due to inflation and other adjustments). What is the impact of the Court’s action and what is the status of the increased federal minimum wage? After Former President Biden signed the Executive Order, three states, Texas, Louisiana and Mississippi, filed suit to enjoin the Order from taking effect. One of the States’ arguments was tha
Container Port

Reexamining Delay and Price Mitigation in the Face of Tariffs

There has been a lot of talk about tariffs in the recent news cycle since the implementation of them by the current administration and with-it heightened anxiety on wallets. However, since the Covid pandemic, the construction industry has faced large-scale disruptions to the supply chain, delays in manufacturing and material shipments, price escalations, and impacts on the labor force.  Amazingly, Texas, for the most part and with many exceptions, has met these challenges and projects across the state are continuing to get built to the satisfaction of most of the contracting parties. That is
robot toy ready to fight

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