Justia Texas Supreme Court Opinion Summaries

In these two consolidated cases involving claims brought against the Electric Reliability Council of Texas, Inc. (ERCOT) the Supreme Court answered, among other questions, that ERCOT is a governmental unit as defined in the Texas Tort Claims Act and is thereby entitled to pursue an interlocutory appeal from the denial of a plea to the jurisdiction.CPS Energy sued ERCOT and several of its officers for, inter alia, breach of contract. The trial court denied ERCOT'S plea to the jurisdiction. Ultimately, the court of appeals held that ERCOT was a governmental unit entitled to take an interlocutory appeal. In the second case, Panda sued ERCOT for, inter alia, fraud. The trial court denied ERCOT's pleas to the jurisdiction. The court of appeals ultimately held that ERCOT was not entitled to sovereign immunity. The Supreme Court affirmed in the first case and reversed in the other, holding (1) ERCOT was entitled to pursue an interlocutory appeal from the denial of a plea to the jurisdiction; (2) the Public Utility Commission of Texas has exclusive jurisdiction over the parties' claims against ERCOT; and (3) ERCOT was entitled to sovereign immunity. View "CPS Energy v. Electric Reliability Council of Texas" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the judgment of the trial court in this declaratory judgment suit, holding that a corporate resolution did not authorize the law firm to redeem a departing shareholder's shares on terms unilaterally set by the firm's founders.Under Tex. Bus. Orgs. Code 21.801 , a professional corporation may redeem corporate shares, which are personal property, if one of three conditions is met. After the firm in this case terminated a shareholder's employment the founders purported to redeem his shares at no cost. The trial court concluded that a resolution generally authorizing the founders to take affirmative action on behalf of the firm unambiguously encompassed redemption. The court of appeals affirmed. The Supreme Court reversed, holding that the resolution did not authorize redemption of the departing shareholder's shares on terms dictated by the founders. View "Skeels v. Suder" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing the judgment of the trial court granting no-evidence summary-judgment motions in this action alleging that Defendants negligently collected, transported, tested, and reported the results of Plaintiff's hair sample used for a drug and alcohol screening, holding that third-party testing entities hired by an employer do not owe a common-law negligence duty to their clients' employees.Plaintiff, a pipefitter, was directed to report to the Houston Area Safety Council to provide hair and urine samples for drug and alcohol screenings. The Safety Council collected the samples and delivered them to Defendant for laboratory testing. Defendant reported that Plaintiff's hair sample tested positive for cocaine and a cocaine metabolite. Subsequent samples tested positive, but Defendant was required to find work with a different employer. Plaintiff later brought this action. The trial court granted summary judgment for Defendant, concluding that Defendant did not owe Plaintiff a legal duty. The court of appeals reversed. The Supreme Court reversed after considering the competing factors and well-established tort principles, holding that Plaintiff failed to establish that Defendant owed him a legal duty under the circumstances of this case. View "Houston Area Safety Council, Inc. v. Mendez" on Justia Law

The Supreme Court held that a parent whose parental rights have been terminated cannot complain for the first time on appeal that the trial court failed to make the "extraordinary circumstances" and "best interest" findings under Tex. Fam. Code 263.401(b).The statute at issue provides that a court may retain a parental rights termination suit if it finds that extraordinary circumstances necessitate the child remaining in the temporary managing conservatorship of the Department of Family and Protective Services and that continuing that conservatorship is in the child's best interest. The court in this case made only one of the required findings when it extended the dismissal deadline. Mother appealed a subsequent judgment terminating her parental rights. The court of appeals vacated that judgment and dismissed the termination suit, concluding that the trial court lost jurisdiction by failing to make the additional required finding by the dismissal deadline. The Supreme Court reversed, holding that the findings requirement is not jurisdictional, and therefore, the court of appeals erred in dismissing the action. View "In re Interest of J.S." on Justia Law

The Supreme Court reversed in part the decision of the court of appeals in this personal injury case, holding that the trial court abused its discretion by including in the jury charge an instruction on res ipsa loquitur.Plaintiff sued Elegante and its elevator-maintenance contractor, Schindler, after he was allegedly injured in an elevator malfunction. The trial court granted summary judgment for Elegante, and Plaintiff's claims against Schindler proceeded to trial. The jury found that Schindler's negligence proximately caused the elevator incident and awarded Plaintiff damages. The court of appeals affirmed. The Supreme Court affirmed the portion of the court of appeals' judgment relating to sanctions imposed on Schindler and otherwise reversed, holding that the trial court erred by submitting a res ipsa instruction to the jury and that the error was not harmless. View "Schindler Elevator Corp. v. Ceasar" on Justia Law

In this case alleging defective design and development of a commercial property the Supreme Court reversed the judgment of the court of appeals concluding that the running of limitations was equitably tolled while the suit was on appeal, holding that there was no tolling.The suit in this breach of contract and negligence action was eventually dismissed for failure to file a certificate of merit. Plaintiff nonsuited its claims and refiled. The court of appeals held that the certificate of merit was deficient as to the breach of contract claim but complied with the statute with respect to the negligence claim. The Supreme Court reversed in part, holding that the certificate of merit failed to satisfy Tex. Civ. Prac. & Rem. Code 150.002 as to Plaintiff's negligence claim. The Supreme Court remanded the case for a determination of whether the dismissal should be with or without prejudice. Thereafter, Plaintiff filed a new suit against Defendant that included a new certificate of merit. The trial court granted summary judgment for Defendant on the grounds that Plaintiff's claims were time-barred. The court of appeals reversed, concluding that Plaintiff was entitled to equitable tolling. The Supreme Court reversed, holding that there was no tolling during the appeal of the earlier-filed lawsuit. View "Levinson Alcoser Associates, LP v. El Pistolon II, Ltd." on Justia Law

The Supreme Court conditionally granted mandamus relief in this negligence and premises liability action, holding that the district court's decision to grant a new trial after a three-week trial was an abuse of discretion.Irma Villegas, an employee of Rudolph Mazda, was struck by a vehicle driven by another employee after several employees drank beer on site. Plaintiff, Villegas's daughter, sued Defendants alleging negligence, failure to train, and premises liability. The jury awarded Plaintiffs over $4 million in damages. Plaintiff filed motions for judgment notwithstanding the verdict and, on grounds of mistrial, for a new trial. The district court granted the motion, giving four reasons for its decision. Rudolph petitioned the court of appeals for a writ of mandamus, which the court denied. The Supreme Court conditionally granted the writ, holding that, individually or collectively, none of the errors identified by the district court presented a proper basis for a new trial. View "In re Rudolph Automotive, LLC" on Justia Law

In this wrongful death action, the Supreme Court reversed the judgment of the court of appeals affirming the judgment of the trial court entering judgment on the jury's verdict awarding more than $15 million to Plaintiffs in noneconomic damages, holding that the award in this case was excessive.Sarah Gregory was driving an eighteen wheeler that jackknifed across lanes of traffic and caused four deaths, including Bhupinder Deol. Deol's family brought a wrongful death action against Gregory and her employer. The jury awarded approximately $16.8 million to Deol's family, and noneconomic damages accounted for more than $15 million of the total. The court of appeals affirmed. The Supreme Court reversed and remanded the case for a new trial, holding (1) nothing in the record or in Plaintiffs' arguments demonstrated a rational connection between the injuries suffered and the amount awarded; and (2) the trial court erred in denying Defendants' request to designate another truck company as a responsible third party. View "Gregory v. Chohan" on Justia Law

The Supreme Court affirmed the judgment of the court of appeals reversing the orders of the trial court granting TotalEnergies E&P USA, Inc.'s motion to stay arbitration before the American Arbitration Association (AAA) and denying MP Gulf of Mexico, LLC's motion to compel that arbitration, holding that the parties' contracts required them to resolve their controversies through arbitration.In the underlying dispute involving oil and gas leases Total E&P filed this suit seeking a declaratory construing the parties' cost sharing agreement. Thereafter, MP Gulf initiated an arbitration proceeding asserting that Total E&P breached the agreement. At issue was whether the parties clearly and unmistakably delegated arbitrability issues to the arbitrator by agreeing to arbitrate their controversies in accordance with the AAA Commercial Rules. The trial court granted Total E&P's motion to stay the AAA arbitration and denied MP Gulf's motion to compel that arbitration. The court of appeals reversed and compelled AAA arbitration. The Supreme Court reversed, holding that the parties clearly and unmistakably delegated to the AAA arbitrator the decision of whether the parties' controversy must be resolved by arbitration. View "TotalEnergies E&P USA, Inc. v. MP Gulf of Mexico, LLC" on Justia Law

In this divorce proceeding, the Supreme Court reversed in part the judgment of the trial court granting Father the exclusive right to determine the primary residence of the couple's four children, holding that the trial court erred in failing to conduct an interview of the parties' thirteen-year-old daughter, M.N., and the error was harmful.Under Tex. Fam. Code 153.009(a) parents in a divorce or custody proceeding may request either an interview of the children by the judge or a jury trial but not both. Mother demanded a jury trial but later withdrew her demand to take advance of section 153.009(a)'s mandate that the trial court interview M.N. The court, however, declined to conduct the interview on the ground that Mother had not filed a written motion. In the final divorce decree the parties were appointed joint managing conservators of the children and Father was granted the right to determined the children's primary residence. The court of appeals affirmed. The Supreme Court reversed, holding (1) the trial court erred by declining to undertake its mandatory obligation to interview M.N.; and (2) the error was not harmless because it resulted in the loss of a jury trial on disputed fact questions. View "In re J.N." on Justia Law