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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

Shields v. Babbitt

Plaintiff Hunter Schuehle sought a declaratory judgment that the 'take' provisions of the Endangered Species Act (ESA) are unconstitutional as applied to the Edwards species, arguing that Congress lacks authority under the Commerce Clause to regulate purely intrastate activity and that the Sierra Club's enforcement constitutes an unconstitutional delegation of authority. Federal Defendants and Sierra Club moved for summary judgment, contending that the Edwards species affect interstate commerce, Schuehle lacked standing, and his claims were not ripe. The Court found the case justiciable, concluding that Schuehle had standing due to economic harm from reduced pumping and that the claim was ripe despite the lack of direct enforcement action. On the merits, the Court denied Schuehle's motion and granted the defendants' motions, upholding the constitutionality of the ESA's 'take' provision under the Commerce Clause (due to potential future commerce related to genetic diversity, prevention of destructive interstate competition, tourism, and scientific research) and the Treaty Power. The Court also rejected Schuehle's claim of unconstitutional delegation regarding the ESA's citizen suit provision, stating it does not represent an unlawful delegation of rulemaking authority.

Endangered Species ActCommerce ClauseConstitutional LawDeclaratory JudgmentSummary JudgmentEnvironmental LawWater RightsGroundwater PumpingEdwards AquiferSpecies Protection
References
63
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. 21-0028
Regular Panel Decision
Apr 14, 2023

Totalenergies E&P USA, Inc. v. Mp Gulf of Mexico, LLC

The Supreme Court of Texas addressed a dispute between TotalEnergies E&P USA, Inc. and MP Gulf of Mexico, LLC concerning arbitration clauses in their contracts. The central question was whether an arbitrator or the courts should determine the arbitrability of their controversies. The Court ruled that by incorporating the AAA Commercial Rules, the parties clearly and unmistakably delegated arbitrability issues to the arbitrator. Consequently, the arbitrator is empowered to decide if the disputes fall within the arbitration agreement's scope. This decision reinforces the principle of severability regarding delegation clauses in arbitration agreements, affirming the judgment of the court of appeals.

ArbitrationArbitrabilityAAA Commercial RulesContract LawSeverabilityDelegation ClauseTexas Supreme CourtCommercial ArbitrationOil and GasDispute Resolution
References
129
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. 01-23-00196-CV
Regular Panel Decision
Aug 29, 2024

Jane Doe v. Occidental Petroleum Corp.

Jane Doe, an employee of Occidental Petroleum Corp. (Oxy), sued Oxy for breach of a Settlement Agreement after she alleged sexual assault by another Oxy employee. The Settlement Agreement included a forum selection clause for Harris County courts. Later, Doe accepted two stock grants from Oxy, which contained a broad arbitration provision, including a clause delegating arbitrability disputes to the arbitrator. After Doe resigned, she sued Oxy for breach of the Settlement Agreement, alleging adverse employment actions and unpaid medical expenses. The trial court compelled arbitration, and the arbitrator found in favor of Oxy. The Court of Appeals affirmed the trial court's decision, concluding that a valid arbitration agreement existed, including an express agreement to delegate arbitrability to the arbitrator, and that Doe's claims fell within its scope.

Arbitration AgreementForum Selection ClauseEmployment DisputeBreach of ContractStock GrantsSexual HarassmentElectronic SignatureDelegation ClauseArbitrabilityAppellate Review
References
22
Case No. MISSING
Regular Panel Decision

Concerned Home Care Providers, Inc. v. State

The case concerns a challenge by home care service agencies and a trade association (petitioners) to New York's Wage Parity Law (Public Health Law § 3614-c). This law conditions Medicaid reimbursement for home health care services in the metropolitan New York area on agencies paying home care aides a minimum wage, determined by reference to New York City's Living Wage Law. Petitioners argued the law was unconstitutional due to improper delegation of legislative authority, violation of the "incorporation by reference" clause, and violation of home rule provisions. They also challenged the Department of Health's (DOH) interpretation of "total compensation." The Supreme Court granted summary judgment to the respondents (DOH), and the appellate court affirmed, finding no improper delegation, no violation of the incorporation by reference clause, home rule provisions inapplicable as Medicaid is a state concern, and DOH's interpretation of "total compensation" to be rational.

Wage Parity LawHome Health Care ServicesMedicaid ReimbursementConstitutional LawLegislative AuthorityNew York City Living Wage LawHome RuleDue ProcessDepartment of HealthStatutory Interpretation
References
27
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

Offshore Exploration & Production LLC v. Morgan Stanley Private Bank, N.A.

The plaintiff, Offshore Exploration and Production, LLC (Offshore), initiated an action seeking a declaratory judgment that Morgan Stanley, acting as an Escrow Agent, must release over $75 million from an escrow fund to defendants Korea National Oil Corporation (KNOC) and Ecopetrol S.A. An arbitration panel had previously ordered Offshore to pay this amount to KNOC and Ecopetrol. However, KNOC and Ecopetrol argued the payment should come directly from Offshore to preserve the escrow fund for other obligations, contending that this dispute falls under the arbitration clause of their Stock Purchase Agreement (SPA). The defendants moved to stay or dismiss the action pending arbitration, while Offshore cross-moved for summary judgment. The court, emphasizing the strong federal policy favoring international arbitration, found that the SPA's broad arbitration clause, which incorporated the American Arbitration Association's International Arbitration Rules, clearly delegated issues of arbitrability to the arbitration panel. The court rejected Offshore's arguments that the dispute arose solely under the Escrow Agreement or that a conflict existed between the SPA's mandatory arbitration clause and the Escrow Agreement's permissive forum selection clause. Consequently, the court granted the defendants' motion to stay the action, pending the arbitration panel's decision on arbitrability and the merits, and denied Offshore's motion for summary judgment without prejudice.

ArbitrationInternational ArbitrationStay of ProceedingsDeclaratory JudgmentContract DisputeEscrow AgreementStock Purchase AgreementArbitrabilityForum SelectionFederal Arbitration Act
References
20
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