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The 2023 Texas Legislative Session brought several important changes to residential construction. First, HB 2022, effective September 1, 2023, made several changes to the Residential Construction Liability Act (RCLA) and second, HB 2024, effective June 9, 2023, created a shorter statute of repose for qualifying contractors. Modifications to the RCLA The RCLA, Chapter 27 of the Texas Property Code, applies to “any action to recover damages or other relief arising from a construction defect, except a claim for personal injury, survival, or wrongful death or for damage to goods.” Tex. Prop. C

Recently, the Armed Services Board of Contract Appeals found that the U.S. Navy waived claims for liquidated damages and was unjustified in terminating a contractor when it allowed the contractor to miss the contract completion date and never set a new completion date.   The contractor, Consorzio Stabile GMG SCARL, was contracted by the U.S. Navy to install blast resistant doors at a facility in Bahrain. Corsorzio’s contract  required the doors would be installed no later than September 29, 2019.  Consorzio had numerous problems in obtaining the properly designed and manufactured doors,

In determining whether a party has waived its right to arbitrate, must prejudice be shown? In Morgan v. Sundance, Inc., the United States Supreme Court in answered this question, no. In Morgan, Morgan sued her employer, Sundance, for violations of the Fair Labor Standards Act, alleging Sundance failed to pay her overtime while working at a Taco Bell franchise. When she was initially hired, Morgan signed an agreement requiring arbitration of any disputes. Morgan nonetheless filed her claim in the US District Court for Southern District of Iowa. In lieu of immediately invoking its arbitration ri

On October 23, 2023, a final rule regarding calculation of prevailing wage rates for federal contracting work took effect.  Almost immediately afterwards, two lawsuits were filed in Texas to stop enforcement of the rule.  Why has so much attention been paid to the final rule and how does the rule potentially impact you? The Associated Builders and Contractors (“ABC”) and Associated General Contractors (“AGC”) of America recently filed suit in the Eastern District of Texas against the U.S. Department of Labor (“DOL”) to prevent enforcement of the DOL’s final rule “Updating of

As an example of how trial and appellate courts are reigning in nuclear verdicts, a federal judge in Georgia recently reduced a $135 million jury verdict to a $5 million judgment.  What was the court’s rationale and how might it impact other nuclear verdicts in other states? Shaun and Amie Harris sued Westwood Professional Services Inc. (Westwood), Silicon Ranch Corporation (SLC), Infrastructure and Energy Alternatives Inc. (IEA), and IEA Constructors, LLC (IEA Constructors), asserting claims for nuisance, trespass, and negligence for damage to their land. The Harrises alleged that SLC’s

Texas law has recently changed regarding the notices a homeowners association (HOA) must provide to its member homeowners of a lien relating to unpaid assessments. Find out how the law has changed and how those changes may impact the timing of HOAs contracting with design professionals and contractors for property improvements. Most everyone has dealt with a HOAs in one way or another. HOAs often deliver services that are commonly reserved for local government entities like trash pickup, street paving, and lighting. Depending on the community, an HOA may also maintain swimming pools, tennis co

On the heels of many tech industry leaders voicing concern about the increasing sophistication of artificial intelligence (AI) and the singularity of AI, President Biden recently signed an Executive Order creating some ground rules for the development, testing and use of AI. The October 30, 2023, Executive Order creates reporting requirements, seeks to protect Americans’ privacy, and seeks to prevent AI from being used for discriminatory purposes. On the reporting side, for example, the Order requires American companies developing any foundation model that poses a serious risk to national se