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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. 03-14-00510-CV
Regular Panel Decision

Noah S. Bunker, Paul Carrell, Everett Brew Houston, Jr., W. Andrew Buchholz, Scott J. Leighty, Jad L. Davis, and Holly Clause v. Tracy D. Strandhagen

Dr. Tracy D. Strandhagen, an anesthesiologist, was a partner in Austin Anesthesiology Group, LLP, which was sold to American Anesthesiology of Texas, Inc. Physicians, including Strandhagen and the appellants, entered into an Advisory Board and Internal Operations Agreement. This agreement included a 'Termination Penalty Clause' stating that if a physician's employment with AAT terminated early for reasons other than without cause by AAT, they would pay $500,000 in liquidated damages. Strandhagen's employment terminated in July 2013, leading to a dispute over the enforceability of this clause. The trial court granted Strandhagen's motion for summary judgment, declaring the $500,000 liquidated damages clause an unenforceable penalty because it was not a reasonable forecast of just compensation.

Contract DisputeLiquidated DamagesUnenforceable PenaltyEmployment AgreementBreach of ContractSummary JudgmentDeclaratory JudgmentAppellate LawTexas LawCommercial Contract
References
54
Case No. MISSING
Regular Panel Decision

Clause v. E.I. du Pont De Nemours & Co.

Plaintiff Darrell H. Clause, Jr. sustained back injuries in a construction site accident while being transported in a pickup truck owned by his employer, Higgins Erectors & Haulers, Inc., a subcontractor for general contractor Scrufari Construction Co., Inc., at a site owned by E.I. du Pont De Nemours & Company. A jury found violations of Labor Law § 241 (6) and Higgins' negligence, awarding damages for medical expenses and lost wages but no pain and suffering to plaintiff, nor any damages to his wife's derivative claim. The Supreme Court initially set aside the verdict regarding Labor Law § 241 (6) liability and granted a new trial. On appeal, the higher court found that the Supreme Court abused its discretion in setting aside the jury's verdict on Labor Law § 241 (6) and Higgins' negligence. The appellate court also determined that the jury's failure to award damages for pain and suffering to plaintiff was unreasonable, granting a new trial solely on those damages, while upholding the denial of damages for the wife's derivative claim.

Construction Site AccidentPersonal InjuryLabor LawNegligenceJury VerdictDamagesPain and SufferingLost WagesMedical ExpensesAppellate Review
References
12
Case No. MISSING
Regular Panel Decision

Todd Shipyards Corp. v. Industrial Union of Marine & Shipholding Workers of America, Local 39

This case involves a plaintiff who filed an action for a declaratory judgment under Section 301 of the Taft-Hartley Act, seeking to invalidate Article XXVII of a collective bargaining agreement as an illegal clause under Section 8(e) of the LMRDA and to stay arbitration. The defendant-union had filed a grievance claiming a violation of Article XXVII. The court first established jurisdiction, rejecting the defendant's argument that it lacked authority to determine an unfair labor practice in this context. The court then addressed the merits, interpreting Section 8(e) and the nature of subcontracting clauses. It determined that Article XXVII, which restricts subcontracting only when the employer's workforce is inadequate, is a primary clause aimed at protecting employees' job security and maintaining the integrity of their contract, rather than achieving a secondary boycott. Consequently, the court found the clause to be permissible and granted the defendant's motion for summary judgment while denying the plaintiff's motion.

Labor LawCollective BargainingDeclaratory JudgmentTaft-Hartley ActLMRDA Section 8(e)SubcontractingUnion GrievanceUnfair Labor PracticeSecondary Boycott ExceptionStatutory Interpretation
References
22
Case No. NO. 03-14-00510-CV
Regular Panel Decision
Mar 03, 2017

Noah S. Bunker Paul Carrell Everett Brew Houston, Jr. W. Andrew Buckholz Scott J. Leighty Jad L. Davis And Holly Clause v. Tracy D. Strandhagen

This case concerns an appeal from a declaratory summary judgment regarding a liquidated-damages provision. Appellee Tracy Strandhagen, a physician, sought to declare a $500,000 liquidated-damages clause in an operating agreement with her former medical practice group's advisory board (appellants) an unenforceable penalty. The trial court denied the appellants' plea to the jurisdiction and granted summary judgment for Strandhagen. On appeal, the Texas Court of Appeals, Third District, found that Strandhagen failed to conclusively prove the provision was an unreasonable forecast of just compensation. Therefore, the appellate court reversed the summary judgment and remanded the case for further proceedings, while affirming that the claim was ripe for review.

Contract LawLiquidated DamagesSummary Judgment AppealDeclaratory JudgmentContract BreachEmployment AgreementOperating AgreementUnenforceable PenaltyRipeness DoctrineAppellate Review
References
43
Case No. MISSING
Regular Panel Decision

In re the Arbitration between Genuth & S. B. Thomas, Inc.

The case involves a dispute between parties to a collective bargaining agreement regarding the application of the 'anti-pyramiding' clause concerning overtime and invasion of rest period pay. The core issue was whether the rest period was curtailed by overtime worked before it began or by an early return to work. The employer argued for the former, which would activate the anti-pyramiding clause, while the union advocated for the latter, negating the clause's impact and increasing worker pay. The arbitrator sided with the union's interpretation. The court subsequently denied the employer's motion to vacate the arbitration award and granted the union's cross-motion to confirm it, affirming that the arbitrator's interpretation was permissible and within his competence.

arbitrationcollective bargaining agreementanti-pyramiding clauseovertime payrest period paylabor disputearbitration award confirmationcontract interpretationarbitrator's competencejudicial review of arbitration
References
0
Case No. MISSING
Regular Panel Decision

In re Arbitration between Reif & Williams Sportswear, Inc.

This case addresses whether a corporation is bound by an arbitration clause in a collective bargaining agreement ratified by its predecessor partnership. The petitioner, Local 169 of the Amalgamated Clothing Workers of America, initiated arbitration against the respondent, Williams Sportswear Co., Inc., for defaulting on payments to employee funds. The corporation, formed by the same partners who ran the predecessor partnership, continued the same business in the same location and sought to stay arbitration, arguing it was not a party to the agreement. While the Special Term denied the stay, the Appellate Division reversed, absolving the corporation of the obligation. The higher court, however, reversed the Appellate Division's decision, holding that the corporation acts as an 'alter ego' of the original promoters and is thus bound by the collective bargaining agreement, emphasizing that a change in corporate form does not negate pre-existing contractual obligations when the underlying business remains unchanged. Therefore, arbitration was deemed enforceable.

Arbitration AgreementCollective Bargaining AgreementCorporate LiabilityAlter Ego DoctrineSuccessor EmployerStay of ArbitrationPartnership DissolutionCorporate FormationContractual ObligationsUnion Rights
References
8
Case No. MISSING
Regular Panel Decision

Allstate Insurance v. Loester

Plaintiff Allstate Insurance Company initiated a declaratory judgment action against its insured, Loester, and Stigliano (the underlying personal injury claimant). Allstate sought to disclaim coverage, alleging Loester breached the policy's cooperation clause by failing to appear for a deposition and being generally uncooperative. The court found Allstate's evidence, including an investigator's affidavit, insufficient to prove willful noncooperation, citing inadequate efforts to locate and secure Loester's assistance. Crucially, the court noted a stipulation allowing Loester's deposition before trial, rendering the disclaimer claim premature. Consequently, Allstate's motion for summary judgment was granted only to the extent of awarding summary judgment to defendant Stigliano, and the entire action was dismissed as premature due to the absence of a presently justiciable controversy.

Insurance DisclaimerCooperation ClauseSummary JudgmentDeclaratory Judgment ActionInsured NoncooperationBurden of Proof (Insurer)Willful ObstructionPremature ActionJusticiable ControversyMotor Vehicle Accident
References
20
Case No. MISSING
Regular Panel Decision

Quevedo v. City of New York

Plaintiff Raphael A. Quevedo, an employee of Berley Industries, Inc., was injured by a boiler explosion in a building owned by the City of New York. Quevedo sued the City and V and A Oil Burner Services, Inc., alleging negligence. The City subsequently commenced a third-party action for contractual indemnification against Berley Industries, Inc., based on a clause in their maintenance contract. Berley argued the indemnification clause was void under General Obligations Law § 5-322.1 and that the City's notice to the insurer was untimely. The Supreme Court and Appellate Division both affirmed the enforceability of the clause. This court affirmed, clarifying that General Obligations Law § 5-322.1 only voids clauses indemnifying for *sole* negligence, and since no sole negligence was proven, the clause remained enforceable to the extent it covered joint fault. The court also rejected the untimely notice argument, citing the contract's provision that notice by either party was sufficient.

Indemnification clauseBuilding maintenance contractContractual liabilityGeneral Obligations LawSole negligenceJoint faultInsurance coverageThird-party actionSettlementAppellate review
References
6
Case No. 07-08-0305-CV
Regular Panel Decision
Jun 02, 2009

Carrie Welch v. Nightingale Nurses, LLC

Carrie Welch, an EEG technician, sued Nightingale Nurses, LLC, her employer, for retaliatory discharge after she filed a worker's compensation claim for an on-the-job injury. Welch's employment contract with Nightingale Nurses, a Florida company, included a forum selection clause requiring litigation in Palm Beach County, Florida. The trial court granted Nightingale's motion to dismiss based on this clause, prompting Welch's appeal. Welch argued the clause was unenforceable due to public interest favoring a Texas forum and because it would be unreasonable and unjust. The Court of Appeals affirmed the trial court's dismissal, finding Welch failed to demonstrate any exceptions to the enforceability of the forum selection clause.

Forum Selection ClauseRetaliatory DischargeWorker's Compensation ClaimEmployment ContractTexas Labor CodeMotion to DismissAppellate ReviewAbuse of DiscretionContract EnforcementFlorida Venue
References
12
Case No. MISSING
Regular Panel Decision

Asoma Corp. v. M/V SEADANIEL

ASOMA Corporation initiated this action in the Southern District of New York against Canadian Forest Navigation Co. and Fortune Sea Transport Co. for alleged cargo damage. The defendants moved to dismiss or stay the proceeding pending arbitration in London, citing a clause in the charter party. ASOMA argued that a different clause (Clause 46) explicitly excluded cargo loss and damage claims from arbitration and mandated litigation in the Southern District of New York. The Court determined that Clause 46, which limits the scope of arbitration for cargo claims, was clear and fully incorporated into the charter party. Therefore, the Court denied both motions to dismiss and to stay the action pending arbitration.

Arbitration AgreementCharter PartyCargo Damage ClaimContract InterpretationHague-Visby RulesMotion to DismissMotion to StayFederal Court JurisdictionPresumption of ArbitrabilityExclusion Clause
References
15
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