The End of Contractual Protections for Architects and Engineers? The Texas Supreme Court and Pitts v. Rivas
In 2025, the Texas Supreme Court issued its decision in Pitts v. Rivas, setting off a firestorm across the state of Texas about whether contracts no longer matter for professionals, particularly design professionals. If the “gist” of a complaint against an architect or engineer is that its services did not meet the applicable standard of care, can the design professional rely on waivers of consequential damages or limitations of liability or even scope exclusions written into their services agreements?
Key Findings of Pitts v. Rivas:
– If the “gist of a client’s complaint” or
Why ‘Almost’ Performance and Necessary Damages Fall Short
In an industry that relies heavily on contract compliance, construction contractors and suppliers operate with little room for error – particularly when it comes to job-critical equipment. A recent memorandum opinion from the Texas Court of Appeals out of Dallas, as see in Fabricating Machinery, Inc. v. RLB Construction, Ltd. d/b/a RoofTec, underscores three key principles:
– contract conformity requires complete, not partial performance;
– a buyer does not waive available remedies by accepting non-conforming goods; and,
– a contractor seeking recovery must prove that its d
Limitation of Liability Provision Enforceable in Construction Context
Recently, our firm prevailed on appeal at the Fort Worth Court of Appeals, obtaining a holding that a limitation of liability provision in a home inspector’s contract was enforceable under Texas law.
This opinion arises from a lawsuit originally filed by Cornelius Joe Ergonis and Linda Ann Ergonis (“Ergonis”) in Denton County against William Thomas Sultzbaugh and Sharon Elliot Sultzbaugh (collectively “Sultzbaughs”), Ebby Halliday Real Estate, Inc. and Kathy Gibson (collectively “Ebby Halliday”), Lighthouse Engineering LLC (“Lighthouse”), and Paul Wood Inspection Group, Inc.,
Texas Supreme Court Clarifies Scope of TxDOT Contractor Immunity Under Section 97.002
The Texas Supreme Court recently issued an important decision for contractors, subcontractors, and infrastructure companies involved in public roadway projects. In Third Coast Services, LLC v. Castaneda, the Court held that statutory protection under Section 97.002 of the Texas Civil Practice and Remedies Code does not depend on a direct contractual relationship with the Texas Department of Transportation (“TxDOT”).
The opinion provides guidance on three recurring issues in roadway-construction litigation: whether Section 97.002 requires contractual privity with TxDOT, what it means to per
Texas Supreme Court Clarifies Contractual Indemnity
In a closely watched case, the Texas Supreme Court in S&B Engineers & Contractors, Ltd. v. Scallon Controls, Inc. held that settlement does not cut off rights to contractual indemnity and that indemnity clauses that only require comparative indemnity are not subject to the requirements of the express negligence rule.
The underlying case involved personal injuries sustained by employees at a facility owned by a Sunoco entity. Sunoco hired S&B Engineers & Contractors to design and install a safety system in its South Texas refinery. S&B, in turn, hired Scallon Controls to sup
First Jury Verdict in Texas Business Court
On February 9, 2026, the first jury was seated for the Texas Business Court in Powers et al. v. Berry et al. The Texas Business Courts were created on September 1, 2024. Powers v. Berry was originally filed state district court in October 2024 and was quickly removed to the Texas Business Court as it involved a business dispute with damages alleged to be between $30 million and $200 million. The dispute at issue involved ownership and control of a crude export terminal. Trial lasted eight days, after which the 12 jurors deliberated and returned a 10-2 verdict for Powers.
Powers v. Berry serves
Overtime Not Recoverable without Proving Employer’s Knowledge
On February 6, 2026, the United States Court of Appeals for the Fifth Circuit held that a former Texas Farm Bureau agency manager, Jerry Merritt, failed to prove his old employer owed him overtime pay, ruling that the ex-employee did not show that Farm Bureau knew he was working overtime.
Farm Bureau employed Merritt as an Agency Manager. In this position, Merritt supervised a team of insurance agents in various Farm Bureau agencies. Farm Bureau classified all Agency Managers, including Merritt, as independent contractors. As an independent contractor, Merritt: (1) set his own schedule, (2) de
