Dallas Gerstle Snelson, LLP Austin

Oil refinery plant with sky background.

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
American and Texas Flag Flying, Texas State Capitol in Austin

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
Records work hours in a time sheet.

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
Stop Signs in work zone

Appeals Court Affirms $14 million Verdict for Construction Truck Accident

A Texas Court of Appeals recently upheld a $14 million verdict against a cellphone tower construction company and its employee, reasoning that the evidence was legally and factually sufficient to support the jury’s findings and the awarded damages was within the jury’s discretion. Q.A. Services, LLC (QA) builds cell phone towers. Kenneth Porter is a co-owner of QA and owns several trucks that were driven to jobsites by QA employees. Roger Landry, a former employee of QA, would travel to the jobsites where he helped build the cell phone towers. In December 2018, he drove to a jobsite near C
Wood Frame Construction Site

Policyholder Must Repay Subcontractor Default Insurer

May a subcontractor default insurer recover sums paid to its policyholder when an arbitration panel finds that the policyholder is partially responsible for the costs to cure the default? In Lecesse Const. Serv., LLC v. Hudson Excess Ins. Co., 85 NY Misc. 1271(Supreme Court of New York, 2025), a New York  trial court held that the insurer had a right to recover over $5 million from the named insured/policyholder. In Lecesse, Lecesse was the construction manager and general contractor for construction of a retirement community in Florida. Lecesse entered into a Master Subcontract Agreement wit
Statue of lady justice on desk of a judge or lawyer.

Ethics Opinion: In-House Attorneys Must Stay In-House

May in-house counsel for a for-profit company owned by nonlawyers provide legal services to customers of the company if the company gives the customers the option of retaining the in-house counsel and only charges the “actual cost” incurred by the company? In Opinion No. 707, the Professional Ethics Committee for the State Bar of Texas concluded, no. The company in question “provides litigation management services and support to lawyers, law firms, and corporations, including software and technology to help customers lower their costs and potentially improve litigation results[.]R
Long Haul Semi Truck On a Rural Western USA Interstate Highway

$116 Million Verdict Overturned Against Trucking Company

The Texas Supreme Court recently overturned a $116 million verdict against a trucking company and its driver, reasoning that, as a matter of law, the trucking company and its driver did not proximately cause the plaintiffs’ injuries. In December 2014, the National Weather Service issued a winter weather advisory indicating that ice was likely to accumulate on the roads and cause hazardous driving conditions. Trey Salinas (“Salinas”) was driving his F-350 pickup along with four passengers—Jennifer Blake and her three children (the “Blakes”)—heading eastbound on I-20 near Odessa. W