Dallas Gerstle Snelson, LLP Austin

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
Piggy Bank Wearing A Surgical Mask

How Broad is Broad? PPP Claims

On April 14, 2020, DNM Contracting, a general contractor in Houston, submitted an application for a Paycheck Protection Plan (PPP) loan with Wells Fargo. Two days later, with its loan not funded, DNM learned that all the funds for the PPP program had been exhausted.  Shortly afterwards, DNM filed suit against Wells Fargo, seeking class action certification, arguing that Wells Fargo violated the PPP regulations by not paying on a “first come, first serve basis” and by favoring larger borrowers. Since the case was filed, a series of procedural maneuvers have kept the parties from addressing
Hairdresser Working with mask

Case Note: Taking a Haircut on COVID-19 Business Interruption Claims

Are lost profits associated with local shelter-at-home orders recoverable under a property insurance policy? At least one court, the US District Court for the Western District of Texas, has ruled they are not. 1.    Non-Essential Businesses In Diesel Barbershop, LLC v. State Farm Lloyds, 2020 WL 4724305 (W.D. Tex., San Antonio Div.), several hair salons were forced to close due to their being categorized as non-exempt businesses under Bexar County’s Shelter-at-Home Order and as non-essential businesses under one of Governor Abbott’s Executive Orders.  Diesel and the other companies file
Official legal eviction order or notice to renter or tenant of home with face mask

Get Out!? Evictions Under the CDC’s September 4, 2020 Order

Your tenant is behind on rent due to COVID-19 related issues.  Can you evict the tenant?  That one question has profound ramifications for existing properties, projects under construction, and projects still in planning stage.  The inability to collect full rent or evict current tenants affects financial obligations, ROIs, and a myriad of other decisions, many of which present risks not just to owners, but developers, designers, contractors and subcontractors. The Centers for Disease Control and Prevention (“CDC”) just made both the answer to the question as it pertains to residential t