Justia Texas Supreme Court Opinion Summaries

Cobalt International Energy partnered with three Angolan companies to explore and produce oil and gas off the coast of West Africa. Later, the federal Securities and Exchange Commission announced it was investigating Cobalt for allegations of illegal payments to Angolan government officials and misrepresentation of the oil content of two of its exploratory wells. This led to a significant drop in Cobalt’s stock price and prompted a class action lawsuit from Cobalt's investors, led by GAMCO, a collection of investment funds that held Cobalt shares. Prior to these events, Cobalt had purchased multiple layers of liability insurance from a number of insurance companies, collectively referred to as the Insurers in this case. When the allegations surfaced, Cobalt notified the Insurers, who denied coverage on the grounds that Cobalt's notice was untimely and certain policy provisions excluded the claims from coverage.In 2017, Cobalt filed for bankruptcy and began settlement negotiations with GAMCO. Eventually, a settlement agreement was reached, which stipulated that Cobalt would pay a settlement amount of $220 million to GAMCO, but only from any insurance proceeds that might be recovered. Cobalt and GAMCO then jointly sought approval of the settlement from the federal court and the bankruptcy court, both of which granted approval.The Insurers then filed a petition for a writ of mandamus, arguing that the settlement agreement was not binding or admissible in the coverage litigation, that Cobalt had not suffered a "loss" under the policies, and that GAMCO could not sue the Insurers directly.The Supreme Court of Texas held that (1) Cobalt had suffered a “loss” under the policies because it was legally obligated to pay any recoverable insurance benefits to GAMCO, (2) GAMCO could assert claims directly against the Insurers, and (3) the settlement agreement was not binding or admissible in the coverage litigation to establish coverage or the amount of Cobalt’s loss. The court reasoned that the settlement was not the result of a "fully adversarial proceeding," as Cobalt bore no actual risk of liability for the damages agreed upon in the settlement. The court conditionally granted the Insurers' petition for a writ of mandamus in part, ordering the trial court to vacate its previous orders to the extent they relied on the holding that the settlement agreement was admissible and binding to establish coverage under the policies and the amount of any covered loss. View "IN RE ILLINOIS NATIONAL INSURANCE COMPANY" on Justia Law

In a dispute between Sealy Emergency Room, L.L.C., Dr. Kannappan Krishnaswamy, and Free Standing Emergency Room Managers of America, L.L.C. (FERMA), along with its doctors, the Supreme Court of Texas ruled on two issues regarding the finality and appealability of judgments. The case arose from a contractual dispute between Sealy ER and FERMA, with both parties filing various claims and counterclaims against each other. The trial court granted FERMA's motion for partial summary judgment, dismissing all of Sealy ER's claims, and later granted FERMA's motion to sever these claims into a separate action.The Supreme Court held that when claims are severed into separate actions, the test for finality applies to each action separately. Thus, any claims that remain pending in the original action are not relevant in deciding whether there is a final judgment in the severed action. Procedural errors in ordering a severance do not affect the finality of the judgment or appellate jurisdiction.Secondly, the court held that when a party seeks attorney’s fees as a remedy for a claim under a prevailing-party standard, a summary judgment against the party on that claim also disposes of its fee request. Therefore, the court’s failure to specifically deny the fee request will not prevent finality if the court’s orders in fact dispose of all parties and claims.In this case, the court concluded that the trial court’s order granting partial summary judgment disposed of all parties and claims that were later severed into a new action. As a result, the severed action became final when the severance order was signed, and Sealy ER timely appealed. The court of appeals erred in holding that it lacked appellate jurisdiction, so the Supreme Court reversed and remanded for the court of appeals to address the merits of the appeal. View "SEALY EMERGENCY ROOM, L.L.C. v. FREE STANDING EMERGENCY ROOM MANAGERS OF AMERICA, L.L.C." on Justia Law

The case involves a fatal accident that occurred at a private railroad crossing owned by Ezra Alderman Ranches, Inc. and operated by Union Pacific Railroad Company. Rolando Prado, Jr. died when his vehicle was struck by a Union Pacific train at the crossing. His family members (the Prados) sued both Union Pacific and Ezra Alderman Ranches, Inc. for negligence. The central issue before the Supreme Court of Texas was whether the evidence was sufficient to create a fact issue on whether the railroad crossing, which was protected by both a stop sign and a crossbuck sign, was "extra-hazardous" and whether the landowner knew it was "unreasonably dangerous."The court held that the evidence was insufficient to support a finding that the crossing was extra-hazardous. The court reasoned that the crossing had a stop sign in addition to the usual crossbuck sign, and anyone who actually stopped at the sign could clearly see a train coming from either direction. The expert testimony that suggested drivers would not stop at a particular stop sign because it "lacks credibility" did not establish that all reasonably prudent drivers would not, much less could not, stop at the sign.The court also held that there was no evidence to support a finding that the landowner, Ezra Alderman Ranches, Inc., had actual knowledge that the crossing was unreasonably dangerous. The court determined that the evidence indicated that the landowner knew of the high volume of traffic at the crossing, but it did not establish that the landowner had actual knowledge that the crossing was unreasonably dangerous.The court reversed the decision of the court of appeals and reinstated the judgment of the trial court in favor of Union Pacific and Ezra Alderman Ranches, Inc. View "UNION PACIFIC RAILROAD COMPANY v. PRADO" on Justia Law

The case in question was heard by the Supreme Court of Texas and revolved around the interpretation of the term "psychiatrist" as it applies to the involuntary civil commitment of individuals exhibiting signs of mental illness. The case involved a 34-year-old man, A.R.C., who had exhibited psychotic symptoms and delusional behavior. Two second-year psychiatry residents completed the required "certificates of medical examination for mental illness," as outlined in Tex. Health & Safety Code § 574.009(a). However, a question arose as to whether these residents could be considered psychiatrists under the statute.The Supreme Court of Texas ruled that these residents were indeed psychiatrists, reversing the lower court's judgment. The court determined that the residents, who were licensed under a physician-in-training program and were engaged in specialized psychiatric training, fell within the definition of a physician specializing in psychiatry. The court rejected the argument that only board-certified psychiatrists qualify under the statute, stating that physicians who specialize in psychiatry qualify as psychiatrists under § 574.009(a).The court emphasized that it is the judge, not the physician, who ultimately decides whether involuntary commitment is necessary or lawful. The court also noted that the legislature has the power to amend the qualifications for psychiatrists and other physicians as it sees fit, provided it adheres to the constitutional requirement of competent medical or psychiatric testimony.The Supreme Court of Texas remanded the case to the court of appeals for consideration of A.R.C.'s remaining challenges. View "IN RE A.R.C." on Justia Law

This case involves a dispute over the right to use a gravel crossing over a railroad track in Johnson County, Texas. The landowners, Nathan Albert and Chisholm Trail Redi-Mix, LLC, were granted an easement by necessity, an easement by estoppel, and a prescriptive easement by a jury, allowing them to cross the railroad tracks owned by the Fort Worth & Western Railroad Company (Western). The jury also found that the landowners did not trespass on the railroad’s property. The Court of Appeals reversed these findings, stating that the evidence was legally insufficient to support the jury’s easement findings and factually insufficient to support the trespass finding. The Supreme Court of Texas partially reversed the Court of Appeals' judgment. It held that while the evidence was legally insufficient to support the jury's findings of an easement by necessity and an easement by estoppel, it was legally sufficient to support the prescriptive easement. The Supreme Court of Texas remanded the case back to the Court of Appeals to consider unresolved issues involving the boundaries and permitted uses of the easement. The dispute started when the railroad company began sending notices to the landowners that they were trespassing on the railroad’s property by using the gravel crossing. Despite this, the gravel crossing had been used without issue for many years and had been referenced as a "private road" on local maps since the 1940s. View "ALBERT v. FORT WORTH & WESTERN RAILROAD COMPANY" on Justia Law

The Supreme Court of Texas evaluated a case in which a land development company, Bellpas, Inc., sought to detach property from one school district and annex it to another. According to the Texas Education Code, if the school boards of the affected districts disagree on the petition, the Commissioner of Education can resolve the issue in an administrative appeal. However, the Lampasas Independent School District (LISD) board neglected to approve or disapprove the petition, leading to a disagreement over whether the Commissioner of Education had jurisdiction over the administrative appeal.The Supreme Court of Texas held that the Commissioner of Education did have jurisdiction over the administrative appeal. The court reasoned that a school board "disapproves" a petition if it does not approve it within a reasonable time after a hearing, as per the plain reading of the Education Code. The court also concluded that the Commissioner did not lose jurisdiction by failing to issue a ruling within 180 days, as the statute's deadline is not jurisdictional.The case was returned to the Court of Appeals to resolve the appeal on its merits. The Supreme Court of Texas stressed that the delay in the administrative appeal process should not deprive the appellant of a decision on the merits of their petition and criticized the school board for refusing to make a decision, thus avoiding any ruling on the merits. View "MORATH v. LAMPASAS INDEPENDENT SCHOOL DISTRICT" on Justia Law

In June 2020, a local newspaper in Polk County published an article criticizing a local assistant district attorney, Tommy Coleman. The article claimed that Coleman had "assisted with the prosecution of Michael Morton" while he was a prosecutor in Williamson County. Michael Morton was wrongfully convicted in 1987 due to prosecutorial misconduct, a conviction that occurred before Coleman began practicing law. Morton was exonerated in 2011 after spending nearly 25 years in prison. The article specifically highlighted an instance during a post-conviction hearing where Coleman mocked requests for DNA testing of evidence that would eventually exonerate Morton. Coleman sued the newspaper and its author for defamation, arguing that the claim that he assisted in Morton's prosecution was false and defamatory.The Supreme Court of Texas held that the article's statement that Coleman "assisted with the prosecution of Michael Morton" was substantially true given Coleman’s public involvement in his office’s efforts to resist DNA testing of the evidence that exonerated Morton. The Court ruled that even if the article was not precise in its characterization of Coleman's role, the "gist" of the article - that Coleman supported the efforts to keep Morton behind bars by resisting DNA testing - was substantially true and therefore not actionably defamatory. As such, Coleman's claims were dismissed. View "POLK COUNTY PUBLISHING COMPANY v. COLEMAN" on Justia Law

This case involves a dispute between a homeowner, Mario Rodriguez, and his insurance company, Safeco Insurance Company of Indiana. After a tornado damaged Rodriguez's home, Safeco issued a payment of $27,449.88, which Rodriguez accepted. Rodriguez's counsel then informed Safeco that it owed an additional $29,500 and threatened to sue. Rodriguez sued Safeco, bringing several claims, including breach of contract and statutory claims under the Insurance Code. Safeco invoked the insurance policy’s appraisal provision and subsequently issued a check to Rodriguez for $32,447.73, which it viewed as full payment of the appraisal amount due under the policy. Safeco also paid an additional $9,458.40, which it claimed would cover any interest possibly owed on the appraised amount.The Supreme Court of Texas was asked to answer a certified question from the United States Court of Appeals for the Fifth Circuit: “In an action under Chapter 542A of the Texas Prompt Payment of Claims Act, does an insurer’s payment of the full appraisal award plus any possible statutory interest preclude recovery of attorney’s fees?” The Supreme Court of Texas held that the answer is yes. When an insurer has fully discharged its obligations under the policy by voluntarily paying the appraised amount, plus any statutory interest, in compliance with the policy’s appraisal provisions, section 542A.007 of the Insurance Code prohibits an award of attorney’s fees. This is because there is no remaining “amount to be awarded in the judgment to the claimant for the claimant’s claim under the insurance policy,” which means no attorney’s fees are available under section 542A.007(a)(3)’s formula. View "RODRIGUEZ v. SAFECO INSURANCE COMPANY OF INDIANA" on Justia Law

In Houston, Texas, a nurse was struck and killed by a driver while crossing the public street next to the hospital where she worked. The nurse's family filed a suit against the hospital, arguing that the hospital had a duty to make the adjacent public road safer due to the layout of its exit and parking lot, which they claimed created a situation in which injury to others was foreseeable. The Supreme Court of Texas ruled that the hospital had a limited duty as a premises occupier based on its control over certain parts of the adjacent public right-of-way. However, the court found no evidence that any dangerous condition the hospital controlled in the right-of-way caused the nurse’s harm. The court rejected the lower courts' ruling that there was a case-specific duty for the hospital to make the road safer. The court reversed the judgment of the lower courts, rendering a take-nothing judgment in favor of the hospital. View "HNMC, INC. v. CHAN" on Justia Law

The Supreme Court of Texas considered a medical negligence case where a 13-year-old girl, Raynee Dunnick, was bitten by a rattlesnake and was treated by Dr. Kristy Marsillo at a local hospital. The hospital had a specific guideline for snakebite treatment, which was followed by Dr. Marsillo. This guideline recommends administering antivenom, a treatment for snakebite, only when certain clinical parameters are met. According to the guideline, the risk of side effects from the antivenom should also be considered.Raynee and her parents sued Dr. Marsillo, claiming that her adherence to the guidelines and her decision not to immediately administer the antivenom upon Raynee's arrival at the hospital was negligent and resulted in Raynee's pain, suffering, impairment, and disfigurement. The trial court granted Dr. Marsillo's motion for summary judgment on the grounds of no-evidence of breach of duty and causation. The court of appeals reversed this decision, but Dr. Marsillo appealed to the Supreme Court of Texas.In its decision, the Supreme Court of Texas held that under section 74.153(a) of the Civil Practice and Remedies Code, a heightened standard of proof is required for a patient's negligence claim against a physician for injuries arising out of the provision of emergency medical care. The claimant must show by a preponderance of the evidence that the physician acted with willful and wanton negligence, which is at least equivalent to gross negligence.The court found that the evidence presented by Raynee did not meet this standard. Specifically, the court found that the expert affidavit provided by Raynee was conclusory and did not adequately explain why the guidelines should have been disregarded or why doing so would have posed an extreme degree of risk to Raynee. Therefore, the court reversed the court of appeals’ judgment and reinstated the trial court’s summary judgment in favor of Dr. Marsillo. View "MARSILLO v. DUNNICK" on Justia Law