Justia Texas Supreme Court Opinion Summaries

The Supreme Court reversed the judgment of the court of appeals in this insurance dispute, holding that an insurance policy does not incorporate by reference the payout limits in an underlying service agreement.Two employees that were severely burned in a workplace accident at an ExxonMobil Corporation refinery sought compensation for their injuries and settled for a collective amount over $24 million. When two of Exxon's insurers, National Union Fire Insurance Company and Starr Indemnity & Liability Insurance Company, denied Exxon coverage under their umbrella policies Exxon sued both insurers for breach of contract. The trial court sided with Exxon, ruling that National Union was obligated to reimburse Exxon. The court of appeals reversed, concluding that Exxon was not insured under National Union's umbrella policy. The Supreme Court reversed, holding (1) Exxon was an insured under National Union's umbrella policy, and the court of appeals erred in ruling otherwise; and (2) because the court of appeals' holding with respect to Starr's policy was predicated on a similar error, judgment in favor of Starr must also be reversed. View "ExxonMobil Corp. v. Nat'l Union Fire Ins. Co. of Pittsburgh, PA" 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 an American Arbitration Association (AAA) arbitration and denying MP Gulf of Mexico, LLC's motion to compel that arbitration, holding that the parties clearly and unmistakably delegated to the AAA arbitrator the decision of whether the parties' controversy must be resolved by arbitration.In this dispute arising over interests in a group of oil-and-gas leases Total E&P sought a declaration construing the parties' "Cost Sharing Agreement." On the same day, Total E&P initiated an arbitration proceeding asking the International Institute to determine the parties' rights under their "Chinook Operating Agreement." MP Gulf subsequently initiated the AAA arbitration proceeding. Total E&P filed a motion to stay the arbitration, which the trial court granted. The court of appeals reversed and compelled AAA arbitration. The Supreme Court affirmed, holding that the parties agreed to delegate the arbitrability issue to the arbitrator. View "TotalEnergies E&P USA, Inc. v. MP Gulf of Mexico, LLC" on Justia Law

The Supreme Court reversed the judgment of the court of appeals concluding that neither party had established proper venue in this workers' compensation case, holding that the record adequately demonstrated that venue was mandatory in Dallas County.Tex. Labor Code 410.252(b), a mandatory venue provision governing suits for judicial review of administrative decisions regarding workers' compensation benefits, requires that suit be brought in "the county where the employee resided at the time of the injury." At issue in this case was whether judicial review of the denial of the workers' compensation claim brought by a Texas Tech University offensive lineman who signed a contract to play for the Dallas Cowboys and was injured while attending the team's training camp in California was proper in Travis County, the county to which the insurer sought transfer, or Dallas County. A Dallas County jury found in favor of the plaintiff on his appeal of the denial of his workers' compensation claim. The court of appeals reversed, concluding that neither party had established proper venue. The Supreme Court reversed, holding that the plaintiff "resided" in Dallas County at the time of his injury, as required by section 410.252(b), and therefore, venue was mandatory in Dallas County. View "Fortenberry v. Great Divide Insurance Co." on Justia Law

The Supreme Court remanded this case stemming from a labor dispute between a union and city, holding that remand was required to establish whether the city complied with Local Government Code Chapter 174's compensation standards.When the City of Houston and the Houston Professional Fire Fighters' Association, Local 341 could not agree to an employment contract the Fire Fighters sued the City for compensation under the Fire and Police Employee Relations Act, codified in Chapter 174, claiming that the City failed to meet Chapter 174's compensation standards. Thereafter, the City's voters approved the "pay-parity amendment" amending the City's charter. The Houston Police Officers' Union sued the Fire Fighters seeking a declaration that Chapter 174 preempted the pay-parity amendment, rendering it unenforceable. In the first action, the trial court rejected the constitutional and immunity challenges brought by the City, and the court of appeals affirmed. In the second action, the court of appeals reversed, concluding that state law did not preempt the amendment. The Supreme Court affirmed as to the initial suit and reversed as to the second suit, holding (1) Chapter 174 does not violate constitutional separation of powers principles; (2) the Fire Fighters met the prerequisites for seeking Chapter 174 enforcement; and (3) Chapter 174 preempts the pay-parity amendment. View "City of Houston v. Houston Professional Fire Fighters' Ass'n, Local 341" on Justia Law

The Supreme Court reversed the judgments of the court of appeals in two ultra vires suits affirming the judgments of the trial courts denying Defendants' jurisdictional pleas as to the pertinent claims and affirmed the judgment of the court of appeals that the due process claims in one case may continue, holding that remand was required.At issue in these two consolidated cases was whether state university officials have the statutory authority to revoke a former student's degree after concluding that the former student engaged in academic misconduct while pursuing that degree. In both cases, the court of appeals concluded that such authority did not exist and thus affirmed the trial courts' denials of the university officials' plea to the jurisdiction on sovereign immunity grounds. The Supreme Court reversed in part, holding (1) the university officials' statutory authority encompassed the authority to determine that a student did not meet the conditions for the award of degrees; and (2) one student's allegation that the disciplinary proceeding she underwent violated her due-process rights was allowed to proceed. View "Hartzell v. S.O." on Justia Law

The Supreme Court denied the petition for a writ of mandamus filed by a prospective voter in the City of San Antonio's May 2023 election, holding that sufficient post-election remedies existed that permitted the voter to challenge any weakness in the proposed amendment and its placement on the ballot.At issue was a proposed amendment that, if adopted, would amend the City Charter. Relators brought this action requesting that the Court enjoin the City from holding the special election in May, order the City Clerk or Council to separate the policy into single-issue amendments, and to amend the proposition's ballot language. The Supreme Court denied relief, holding (1) Relators' claimed injury was not a reason to remove the proposition from the ballot; (2) to dismantle the policy into pieces in advance of the election deprived the petition signatories of their right to have their amendment considered by the voters as it was proposed; and (3) Relators failed to show that they were entitled to relief in the form of amending the proposition's ballot language. View "In re Morris" on Justia Law

In this tort and breach-of-contract lawsuit, the Supreme Court affirmed in part and reversed in part the trial court's take-nothing summary judgment entered on the claim brought by several affiliated retailers (the Retailers), holding that the trial court erred in part.The Retailers in this case sought to recoup millions of dollars in disallowed reimbursements for purchases their customers made under the federally-funded Supplemental Nutrition Assistance Program (SNAP) after a lengthy outage in a third-party contractor's Electronic Benefit Transfer (EBT) system. The Retailers had permitted their SNAP customers to make purchases during the system outage, as authorized by a federal regulation, but held the EBT transactions in abeyance until they could be submitted and the Retailers reimbursed. The EBT contractor, however, later declined reimbursement for nearly 90,000 transactions. The trial court rendered a final take-nothing judgment against the Retailers, and the court of appeals affirmed. The Supreme Court affirmed the judgment on the Retailers' breach of contract claim but reversed the judgment as to losses from certain transactions and the Retailers' tort claims, holding that the court relied on an erroneous construction of 7 C.F.R. 274.8(e)(1). View "Wal-Mart Stores, Inc. v. Xerox State & Local Solutions, Inc." on Justia Law

The Supreme Court reversed the judgment of the court of appeals directing the trial court to dismiss for lack of jurisdiction Homeowners' suit against the City of Brownville for negligence brought under the Texas Tort Claims Act, holding that Homeowners successfully invoked the statutory waiver of governmental immunity set forth in Tex. Civ. Prac. & Rem. Code 101.021(1)(A).Homeowners filed this action against the City to recover for property damage they received after about two feet of water from a resaca that served as part of the City's water-draining system spilled over its banks and into their homes. The City filed a plea to the jurisdiction, which the trial court denied. The court of appeals reversed and directed the trial court to grant the City's plea to the jurisdiction. The Supreme Court reversed, holding that Homeowners, at least at this stage, met their burden to create a fact issue precluding dismissal. View "Rattray v. City of Brownsville" on Justia Law

The Supreme Court affirmed the summary judgment in favor of Landowners in this oil-and-gas dispute over how to calculate Landowners' royalty under the terms of a mineral lease with Producers, holding that there was no error in the proceedings below.At issue in a declaratory judgment action was whether, based on language in the subject leases, Landowners' royalty was payable not only on gross proceeds but also on an unaffiliated buyer's post-sale postproduction costs if the producers' sales contracts stated that the sales price had been derived by deducting such costs from published index prices downstream from the point of sale. The trial court granted summary judgment for Landowners as to these types of marketing arrangements. The Supreme Court affirmed, holding that the broad language of the lease unambiguously contemplated such a royalty base. View "Devon Energy Production Co., L.P. v. Sheppard" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the court of appeals reversing the order of the district court granting summary judgment for Helena Chemical Company in this action brought by Plaintiffs claiming that an aerial herbicide drifted onto their farms and damaged their cotton crops, holding that the district court did not err in granting summary judgment for Helena.Plaintiffs sued Defendant, which oversaw the aerial application of herbicide that Plaintiffs alleged Defendants were responsible for reducing crop yields in over 14,000 acres of cotton fields, seeking recovery under various theories, as well as mental anguish damages and punitive damages. The district court granted summary judgment in favor of Helena. The court of appeals reversed in large part. The Supreme Court reversed in part and reinstated the summary judgment for Helena, holding that the evidence presented by Plaintiffs that Helena's application of the herbicide caused Plaintiffs' injury did not raise a genuine issue of material fact required to survive summary judgment. View "Helena Chemical Co. v. Cox" on Justia Law