Dallas Gerstle Snelson, LLP Austin

Combing through the fine print

Knowledge is Power: Know Your Warranty

Many times, contractors are sued for both breach of contract and breach of warranty, and then again for breach of express and implied warranties, leaving the contractor hopelessly confused.  If the warranties are contained in the contract, why isn’t breach of warranty redundant with breach of contract?  And, how is the contract subject to express and implied warranties? Fundamentally, what are warranties?  They are representations made by one party upon which another party may rely.  Warranties can be express or implied or created by statute. In this discussion, we will focus on express
Businesswoman hands working in Stacks of paper files for searching information on work desk office, business report papers,piles of unfinished documents achieves with clips indoor,Business concept

Buyer Beware: 3 Subcontractor Insurance Traps for the Unwary

Red flags abound.  First, the project owner insists that you use a particular subcontractor, even though you have never used or heard of that subcontractor.  Second, the subcontractor does not have sufficient capitalization or expertise to perform the work.  Third, the subcontractor sends you a certificate of liability insurance listing an insurance company that sounds vaguely, but not entirely, familiar. None of these red flags mean much until a claim is asserted relating to the subcontractor’s work.  That’s when many in the construction industry receive an unwelcome refresher course
Building Inspector Looking At New Property

The Chamber of (Moldy) Secrets: Case Note: Potter v. HP Texas 1 LLC, et al.

The Dallas Court of Appeals recently revisited the meaning of “as-is” provisions in real estate transactions, affirming that properly drafted “as is” clauses may provide a basis for summary disposition of a case.  Steve Snelson and Maria Moffatt of our firm represented the contractor, CGC Construction, in the underlying case and on appeal. In Potter, the Potters sued for personal injury damages arising from alleged exposure to mold in a rent-to-buy house that they occupied.  HP Texas 1, LLC (HPA) owned the house and leased it the Potters.  HPA retained a third-party inspection compa
Austin, Texas Capitol building

The State of Texas: Update on Gov. Abbott’s COVID-19 Executive Orders

Texas continues to gradually reopen for business as the COVID-19 pandemic in most of the State stabilizes and in the major metropolitan areas, decreases.  Governor Abbott’s recent Executive Order regarding COVID-19, GA-30, issued on September 17, 2020, and the Minimum Standard Health Protocols for Bars or Similar Establishments, issued on October 7, 2020, reflect those realities. Under Executive Order GA-30, there are no occupancy limits for any services listed by the US Department of Homeland Security’s Cybersecurity and Infrastructure Workforce (CISA), which as defined in earlier Execut
Connecting from the comfort of his home

Que Sera, Sera: Case Note: Capano Energy, LLC v. Bujnoch, et al.

We have litigated some very strange “contracts”, including a construction contract comprised of a series of text messages.  And while we await the day when a party alleges a contract was formed via Instagram posts, the Texas Supreme Court has recently provided some guidance on whether a series of emails (dinosaur technology, I am told by my kids) can comprise a binding contract. The “contract” at issue in Capano Energy was an easement for a gas pipeline. In 2011, Plaintiffs granted Capano a 30-foot wide easement across their properties for installation and maintenance of a 24-inch gas
A pay slip underneath an out of focus calculator

Who’s On First: Deferring Payroll Tax

When an employee chooses to defer payroll tax pursuant to President Trump’s recent order, who is responsible for making certain that the tax is actually paid at the end of the deferral period? In the ever-changing world of COVID-19-related guidance documents and regulations, the Department of the Treasury recently clarified that employers bear that burden. Effective September 1, 2020, employees who make less than $4,000 per biweekly pay period may opt to defer payment of their portion of Social Security withholding taxes through the end of 2020.  Those deferred taxes must be paid by April 3
Home Building

The Impossible Dream – Case Note: EM Building Contract Services v. Byrd Building Services

Is a subcontractor’s performance made impossible by a designer’s incomplete plans or the defective work of another subcontractor? Under those circumstances, is the subcontractor legally discharged from performing its contractual obligations?  The Dallas Court of Appeals, in a lengthy opinion, recently addressed this issue. In EM Building Contractor Services, LLC v. Byrd Building Services, LLC, Byrd, a general contractor, filed suit against EM Building, a drywall subcontractor, over three separate hotel projects located in Texas.  After EM Building failed to meet project schedule, failed