Justia Texas Supreme Court Opinion Summaries

A borrower obtained a home equity line of credit from a lender, secured by his Texas homestead. The promotional loan terms offered a reduced interest rate provided certain conditions were met, but one such condition—maintaining a $25,000 loan balance within fifteen days of closing—did not apply to Texas homestead loans under the state constitution. After several years, the borrower realized the lender had charged him a higher interest rate than agreed, resulting in an overcharge of approximately $10,000. The lender initially disputed the error but later acknowledged it and offered to pay the overcharged amount plus interest. The borrower, however, sought a much larger remedy: forfeiture of the entire outstanding loan based on the Texas Constitution’s home equity loan provisions.The case was first heard in the 68th District Court of Dallas County, which granted summary judgment for the lender, ruling that the borrower was entitled to actual damages only, not forfeiture of the loan principal and interest. The lender paid the borrower his actual damages. On appeal, the Court of Appeals for the Fifth District of Texas affirmed the trial court’s judgment, holding that the forfeiture remedy described in Article XVI, Section 50(a)(6)(Q)(x) of the Texas Constitution is limited to breaches of constitutionally mandated terms and conditions, not any and all breaches of a loan agreement.The Supreme Court of Texas reviewed the case. It held that the constitutional forfeiture remedy applies only to breaches of the terms and conditions specifically enumerated in the Texas Constitution’s home equity loan provisions, not to ordinary contract breaches or errors outside those constitutional requirements. The Court affirmed the judgment of the court of appeals, concluding that the borrower was not entitled to forfeiture because the lender’s error did not violate a constitutional obligation. View "STAUB v. BBVA USA" on Justia Law

Emily Lehmberg sued Studio E. Architecture and Interiors, Inc. and other parties over the remodeling of her home. Studio E. moved to dismiss the claims against it, arguing that Lehmberg failed to file a certificate of merit as required by Texas Civil Practice and Remedies Code Section 150.002, which mandates such a certificate for claims against certain professionals. Lehmberg contended that her claims were not based on professional services but rather on alleged dishonesty and fraud. She also argued that Studio E. had waived its right to seek dismissal by waiting more than two years to file its motion. While the case against other defendants remained pending, the trial court denied Studio E.’s motion, and Studio E. filed an interlocutory appeal.The Court of Appeals for the Fourth District of Texas reversed the trial court’s decision, holding that Section 150.002 applied, and that Studio E. had not waived its right to seek dismissal. The appellate court remanded the case to the trial court to determine whether dismissal should be with or without prejudice. The trial court dismissed the original claims against Studio E. without prejudice, but allowed Lehmberg to file an amended petition with a certificate of merit, reasserting her claims. Studio E. moved to dismiss the amended petition, arguing that reassertion was not permitted in the same lawsuit, but the trial court denied the motion. Studio E. appealed again, and the court of appeals affirmed, holding that amending the petition was proper.The Supreme Court of Texas reviewed the case and held that when claims against a defendant are dismissed without prejudice under Section 150.002, and the underlying lawsuit remains pending, the plaintiff may reassert those claims in an amended petition along with a certificate of merit. The Court affirmed the judgment of the court of appeals. View "STUDIO E. ARCHITECTURE AND INTERIORS, INC. v. LEHMBERG" on Justia Law

A woman was killed when a construction crane collapsed during a storm, striking her apartment building. Her parents, acting individually and on behalf of her estate, brought a negligence and gross negligence lawsuit against several defendants, primarily three related construction and development entities. Following a jury trial, the jury found these entities had engaged in a joint enterprise that caused the woman’s death and awarded over $360 million in compensatory damages, along with $500 million in exemplary damages (which the trial court later reduced under statutory caps). The court entered judgment holding the entities jointly and severally liable for the compensatory damages, with two entities also severally liable for exemplary damages.The defendants, collectively known as the Greystar Entities, filed a single $25 million joint supersedeas bond to suspend execution of the judgment during their appeal. The plaintiffs challenged the sufficiency of this joint bond in the 191st Judicial District Court, Dallas County, arguing that Texas law capped the required bond at $25 million per debtor, not per judgment. The trial court agreed, ruling that each entity needed to post its own $25 million bond and that the joint bond could suspend execution for only one entity unless the defendants designated which one. The Greystar Entities appealed to the Fifth Court of Appeals at Dallas, which affirmed the trial court’s order.The Supreme Court of Texas reviewed the case on a petition for writ of mandamus. The Court held that, under Texas Civil Practice and Remedies Code Section 52.006(b), the $25 million cap on supersedeas bonds applies per judgment debtor, not collectively to all debtors in a single judgment. The Court also held that the trial court abused its discretion by immediately invalidating the joint bond without allowing a reasonable time for compliance. The Supreme Court conditionally granted partial mandamus relief, directing the trial court to provide additional time for each entity to post an individual bond. View "IN RE GREYSTAR DEVELOPMENT & CONSTRUCTION, L.P." on Justia Law

A purchaser acquired a large ranch in Texas that was crossed by a decades-old electric distribution line operated by an electric cooperative. The cooperative had constructed the original line in 1947, relying on an unrecorded document from a prior owner’s estate purporting to grant an easement, though this document was never filed in county records. The line was visible and marked in a survey at the time of the purchaser’s acquisition. In 2012, the cooperative undertook a significant upgrade of the line to serve a new customer and substation, tripling the number of poles and nearly doubling the number of wires, without recorded evidence of a valid easement for the expanded use. The purchaser objected, asserting trespass after learning of the upgrade.The trial in the 63rd District Court of Kinney County resulted in a jury finding that the cooperative had not established a written or prescriptive easement, but did hold an easement by estoppel, based on reliance upon the prior owner’s unrecorded document. The jury further found that the upgrade did not exceed the scope of this easement, and the trial court rendered judgment for the cooperative. The Fourth Court of Appeals in San Antonio affirmed, holding that evidence supported both the existence and scope of the easement by estoppel.Upon review, the Supreme Court of Texas concluded that legally sufficient evidence supported the jury’s finding that an easement by estoppel existed because the cooperative had detrimentally relied on the prior owner’s representation and the purchaser had actual notice of the line. However, the Court held as a matter of law that the scope of the easement by estoppel was limited to the cooperative’s original use, and that the substantial upgrade—serving new customers and requiring significantly more infrastructure—exceeded that scope. The Supreme Court of Texas reversed the judgment of the court of appeals, rendered judgment for the purchaser on the trespass claim, and remanded the case for further proceedings. View "BOERSCHIG v. RIO GRANDE ELECTRIC COOPERATIVE, INC." on Justia Law

Two neighboring landowners in Victoria County, Texas, became embroiled in a dispute after one party, the Kuceras, constructed a dam and berms while developing their property, allegedly altering a creek’s natural flow and causing flooding on the Kolles’ adjacent land. The Kolles, who jointly own and use their property for cattle grazing, sued the Kuceras for violating the Texas Water Code and on several common-law grounds, including nuisance and trespass. The Kuceras attempted to designate Victoria County as a responsible third party, arguing the county’s actions might have contributed to the flooding, but the trial court struck this designation due to lack of evidence that the county violated any legal standard. At trial, a jury found the Kuceras liable under multiple theories, apportioned responsibility among them, and awarded the Kolles both economic and exemplary damages.On appeal, the Thirteenth Court of Appeals concluded that the Kolles could not recover damages for loss of use because the injury to their property was permanent, reducing the total economic damages from $425,000 to $175,000. However, the court affirmed the remainder of the trial court’s judgment, including the exemplary damages.The Supreme Court of Texas reviewed whether the exemplary damages awarded exceeded statutory limits under Civil Practice and Remedies Code Chapter 41. The Court held that the statutory cap on exemplary damages must be calculated based on the percentage of economic damages attributable to each defendant, not the total damages awarded. Further, when economic damages are awarded jointly to plaintiffs as a single sum, the cap applies to each defendant based on that single amount. The Court reversed the court of appeals in part and remanded the case to the trial court to reallocate the exemplary damages and consider whether, in light of reduced actual damages, the exemplary awards are unconstitutionally excessive. View "K & K INEZ PROPERTIES, LLC v. KOLLE" on Justia Law

An Oklahoma company, formed to acquire mineral rights in Appalachia, alleged that two Texas parties failed to convey certain West Virginia mineral interests as contractually agreed. The Oklahoma company, which included non-Texas owners and participants, had funded the purchase of these rights, but a number of mineral deeds were recorded in the name of the Texas seller rather than the buyer. As a result, royalties from those mineral rights were paid to the seller. The Oklahoma plaintiff sought to compel the Texas defendants to reform the deeds, perform their contractual obligations, declare the plaintiff’s entitlement to the royalties, and enjoin the defendants from transferring the disputed interests.The 141st District Court in Tarrant County, Texas, denied the defendants’ plea to the jurisdiction and ultimately granted summary judgment for the plaintiff, awarding specific performance, deed reformation, declaratory relief, an injunction, and monetary relief. The court found it had jurisdiction over the parties and the contract, even though the mineral rights were located in West Virginia. On appeal, the Court of Appeals for the Second District of Texas reversed, holding that Texas courts lacked subject-matter jurisdiction because the suit’s gravamen was the adjudication of title to foreign (West Virginia) real property.The Supreme Court of Texas reviewed the matter and disagreed with the appellate court’s application of the so-called “gist” rule. The Supreme Court held that Texas courts with personal jurisdiction over the parties may issue in personam judgments concerning contractual obligations to convey out-of-state real property, as long as the judgment binds only the parties and does not purport to establish or alter title to the property by the court’s own force. The Supreme Court reversed the appellate court’s judgment and remanded for consideration of remaining issues. View "BRAXTON MINERALS III, LLC v. BAUER" on Justia Law

The case involves Nadine Realme, who participated in a Thanksgiving “turkey trot” fun run organized by the City of San Antonio. While following the course through a public park, Realme tripped over a metal pole fragment and broke her arm. She sued the City, alleging negligent maintenance of the park. The City asserted that Texas’s Recreational Use Statute barred ordinary negligence liability for injuries occurring during recreational activities on government property, arguing that the turkey trot was a “recreational” activity under the statute.In the 216th District Court, Realme prevailed. The Fourth Court of Appeals affirmed, reasoning that while an organized footrace is “recreation” in common parlance, the statute required activities to be “associated with enjoying nature or the outdoors.” The appellate court concluded that the turkey trot, as an organized human event focused on completing the race, was not sufficiently connected to enjoyment of nature to qualify as “recreation” under the statute. It further determined that Realme’s purpose—to have fun and capture a social media picture—did not establish she entered the premises to enjoy nature or the outdoors.The Supreme Court of Texas reviewed the statutory definition of “recreation,” emphasizing its nonexhaustive list and ordinary meaning. It held that a community fun run is “recreation” because it provides diversion, play, and enjoyment, fitting the statute’s scope. The Court ruled that the Recreational Use Statute immunizes the City from ordinary negligence liability, reversing the Fourth Court of Appeals’ judgment and rendering judgment for the City on that claim. The Court remanded the case to the Fourth Court of Appeals to address Realme’s gross negligence claim, which had not been considered previously. View "CITY OF SAN ANTONIO v. REALME" on Justia Law

In 1951, a deed was executed conveying an undivided 1/128 interest in oil, gas, and other minerals in certain Reeves County land. For nearly seventy years, the grantees and their successors received fixed 1/128 royalty payments without dispute. In 2020, a successor grantee, Johnson, asserted a different interpretation, claiming the deed provided a floating 1/16 nonparticipating royalty interest rather than the fixed 1/128 royalty everyone had understood and paid for decades.The 143rd District Court in Reeves County denied Johnson’s motion for summary judgment and granted summary judgment in favor of the Cliftons and other parties, confirming that the deed conveyed a fixed 1/128 royalty interest. Johnson appealed to the Court of Appeals for the Eighth District of Texas, which relied heavily on Van Dyke v. Navigator Group, 668 S.W.3d 353 (Tex. 2023). The appellate court applied the “double-fraction” presumption from Van Dyke, concluding that the deed conveyed a floating 1/16 royalty and reversed the trial court’s judgment. It also declined to remand the case to consider the presumed-grant doctrine, holding the Cliftons had forfeited that argument.The Supreme Court of Texas reviewed the case. It held that while the Van Dyke double-fraction presumption applied, the plain language of the deed rebutted the presumption, demonstrating that “1/8” was used for its ordinary numerical value, not as a term of art. The Court concluded the deed conveyed a fixed 1/128 royalty interest, not a floating 1/16 royalty. The Court reversed the appellate court’s judgment and reinstated the trial court’s summary judgment. The Court did not reach the presumed-grant doctrine issue, as its textual interpretation of the deed resolved the dispute. View "Clifton v. Johnson" on Justia Law

Cockrell Investment Partners, L.P., owns a pecan orchard in Pecos County, Texas, and relies on several wells to irrigate its trees using water from the Edwards–Trinity Aquifer. Its neighbor, Fort Stockton Holdings, L.P. (FSH), historically used water from the same aquifer for agricultural purposes and later started selling it to nearby cities. FSH sought to significantly increase its permitted water usage, leading Cockrell to object due to concerns about the aquifer’s finite supply. FSH pursued several permit applications and amendments, some of which involved Republic Water Company of Texas, LLC, and ultimately resulted in settlement agreements that altered FSH’s permit terms. Cockrell attempted to participate as a party in administrative proceedings regarding these permit applications but was denied party status by the Middle Pecos Groundwater Conservation District.The district court in one instance granted the District’s plea to the jurisdiction, and in another instance granted summary judgment in favor of the District after denying its plea to the jurisdiction. Cockrell appealed both decisions to the Court of Appeals for the Eighth District of Texas. The appellate court affirmed the lower court rulings, determining that Cockrell had not exhausted its administrative remedies because it filed suit before waiting the required 90 days after submitting reconsideration requests, as prescribed by Section 36.412 of the Texas Water Code.The Supreme Court of Texas reviewed both consolidated cases. It held that the 90-day exhaustion requirement applies only to permit applicants or parties to the administrative proceeding, which Cockrell was not, since it was denied party status. The Court concluded that Cockrell met all statutory requirements for judicial review under Section 36.251 of the Water Code and properly exhausted its administrative remedies according to local Rule 4.9, which required only a 45-day waiting period. The Court reversed the judgments of the court of appeals and remanded the cases for further consideration. View "COCKRELL INVESTMENT PARTNERS, L.P. v. MIDDLE PECOS GROUNDWATER CONSERVATION DISTRICT" on Justia Law

Pedro Castaneda died in a traffic accident at an intersection on State Highway 249 that was under construction. At the time, the intersection’s traffic lights were installed but not yet operational, and there was a dispute about whether they were properly covered to indicate their status. Castaneda’s family sued the contractors involved in the project, SpawGlass Civil Construction, Inc. and Third Coast Services, LLC, alleging that negligence in the construction and installation of the traffic signals contributed to the fatal accident. The construction project was governed by an agreement between the Texas Department of Transportation (TxDOT) and Montgomery County, with the County responsible for the project’s design and construction, but with TxDOT retaining authority over the adjacent frontage roads and final approval of plans.The trial court denied the contractors’ motions for summary judgment that sought dismissal under Texas Civil Practice and Remedies Code Section 97.002, which grants immunity to contractors under certain conditions. The contractors appealed. The Fourteenth Court of Appeals affirmed, concluding that Section 97.002 applies only to contractors who are in direct contractual privity with TxDOT, and since neither contractor had a direct contract with TxDOT, they could not invoke the statute’s protection.The Supreme Court of Texas reversed the court of appeals. It held that Section 97.002 does not require direct contractual privity with TxDOT for a contractor to qualify for statutory immunity. The court determined that, based on the summary judgment record, SpawGlass and Third Coast performed work "for" TxDOT within the meaning of the statute, as their activities directly related to frontage roads that TxDOT would own and maintain. The court remanded the case to the court of appeals to determine whether the contractors met the remaining requirements of Section 97.002. View "THIRD COAST SERVICES, LLC v. CASTANEDA" on Justia Law