Recent Opinions
Medical Malpractice. In this wrongful death
case, the survivors argued that the hospital failed to
provide echo-cardiogram services on a timely basis
to diagnose the decedent's condition. The hospital
argued that the decedent's non-disclosure of his
diagnosed heart murmur constituted contributory
negligence. The trial court submitted the contributory
negligence question in a separate (third) phase of the
trial rather than in the liability (first) phase of the trial.
The Court, while disapproving of the three-phase
procedure, held that the hospital was not entitled to a
contributory negligence question because there was
no evidence that, in reasonable medical probability,
the nondisclosure of the heart murmur changed the
course of treatment or contributed to the decedent's
death. The Court also held that there was
legally sufficient evidence to support the gross
negligence finding: the hospital knew of the "obvious"
necessity for "stat" echo capabilities but failed to
provide them, failed to advise the medical staff of that
limitation, and failed to provide an effective procedure
to respond to the life-threatening situation. Columbia Medical Center of
Las Colinas, Inc v. Athena Hogue et. al.
,__S.W.3rd__ (Tex. 8/29/08).
Damages. In this wrongful death case the
Court holds that there was no evidence to support the
jury's award of damages for loss of inheritance.
Evidence that the surviving wife is younger in age and,
as projected by the life expectancy tables, would have
outlived the decedent had he died a natural death
was insufficient without evidence as to the wife's
health. Further, the plaintiff could not rely upon the
work-life expectancy table alone to calculate the
decedent's future work-life because the calculation
did not take into account the decedent's health
condition in the future. Columbia Medical Center of
Las Colinas, Inc v. Athena Hogue et al, ,
__S.W.3rd__ (Tex. 8/29/08).
Insurance. The "claims made" policy in this
case covers claims made against, and reported by,
the insured during policy period. A claim was made
but not reported during the policy period. The insured
asserts entitlement to defense costs by virtue of
insurer's waiver and estoppel. Court limits
Wilkinson exception by holding that that
insurer cannot waive non-coverage or enlarge policy
to cover non-covered risks through estoppel.
However, if the insurer's actions prejudice the
insured, the lack of coverage does not preclude the
insured from asserting an estoppel theory to recover
the damages (e.g. non-payment of policy benefits) it
sustains because of the insurer's actions. Ulico Casualty Co. v. Allied
Pilots Association, __S.W.3rd__ (Tex. 8/29/08).
Insurance. Insured was sued for defective
siding system which permitted moisture to enter and
damage interior wall components. Court holds that
property damage "occurs" for purposes of the
occurrence-based CGL policy at issue when the
actual physical damage to the property occurred, not
when it was or should have been discovered.
Accordingly, insurer's duty to defend was triggered by
allegations that damage occurred during the policy
period even though it was inherently undiscoverable
until after the policy expired. Don's Building Supply, Inc. v.
OneBeacon Ins. Co., __S.W.3rd__ (Tex. 8/29/08).
Insurance. A lawsuit against a cell phone
manufacturer alleging that radiation emitted by the
phones caused "biological injury" to users triggered a
duty to defend under an insurance policy
covering "damages because of bodily injury." Zurich Am. Ins. Co. et al v.
Nokia, Inc., __S.W.3rd __ (Tex. 8/29/08).
Personal Injury. Employer has no duty to warn
an employee of risks commonly known or already
appreciated by employee. Brookshire Grocery Co. v.
Goss, __S.W.3rd__(Tex. 8/29/08).
Personal Injury. The Court holds that, as a
matter of law, a landowner had no duty to protect the
decedent invitee from a criminal assault on
landowner's property because the ten violent crimes
on the premises over the previous 23 month period
were not sufficiently frequent and similar to make the
murder in question reasonably foreseeable. Trammel Crow Central
Texas, Ltd., v. Guitierrez et al, __S.W.3rd__(Tex.
8/29/08)
Personal Injury. Plaintiff, the employee of an
independent contractor, was injured when he fell off
of a loading dock ramp -- which he had previously
used on numerous occasions -- when securing the
load on his truck. The Court holds that the absence of
rails on the ramp was open and obvious and, thus, as
a matter of law the landowner had no duty to warn of
the condition. General Electric Co. v.
Moritz, __S.W.3rd. __ (Tex. 6/13/08).
Arbitration/Employment. In this retaliatory-
discharge case, the Court construes an arbitration
agreement which limits the employee's substantive
and procedural rights under the Worker's
Compensation Statute. The Court holds that the
agreement's provisions precluding an award of
punitive, exemplary, or liquidated damages or an
order reinstating employment were substantively
unconscionable and void. A provision requiring all
fees related to arbitration to be split
equally between the parties (with the employee's
contribution capped) was not unconscionable per
se but required the arbitrator to assess whether
the fee-splitting provisions would prohibit the
employee from fully and effectively vindicating
statutory rights. Similarly, discovery limitations in the
agreement were not unconscionable per se;
the arbitrator must determine whether the provisions
would prevent vindication of non-waivable rights or
would deprive the employee of a fair opportunity to
present his claims. The invalid provisions were
severable from the agreement to arbitrate which was
otherwise enforceable. In re Poly-America LP et.
al., __S.W.3rd__(Tex. 8/29/08).
Arbitration. Limits on discovery, applicable to
both parties, does not make arbitration
unconscionable. Discussing a potential trial setting
and sending limited discovery before moving to
compel arbitration was not a waiver of same.
In re Fleetwood Homes of
Texas, L.P., __S.W.3rd__ (Tex. 6/20/08).
Civil Rights. Police officer responds to a call
that Plaintiff had sprayed her neighbors with water.
Plaintiff produces evidence that when she gave her
name but not her date of birth to the officer that she
was forcibly arrested resulting in personal injuries.
Court holds that no reasonable officer could have
believed that the failure to provide a date of birth
constituted probable cause to arrest Plaintiff, thereby
raising a fact issue on officer's qualified immunity
defense. Court also holds that there was evidence
that it would have been clear to a reasonable officer at
the scene that the force used was excessive to the
need and objectively unreasonable under the
circumstances. As such, a fact issue was raised on
the officer's qualified immunity defense to the claim of
excessive force. Dutton v. Hayes-
Pupko, __S.W.3rd __ (Tex. App. Austin 8/7/08).
Personal Injury/Governmental Immunity.
Firetruck responding to an alarm collides with
Plaintiff's vehicle resulting in serious injuries. Court
holds that evidence that firefighter failed to wear
corrective lenses, activate the siren, and slow as
necessary for safe operation before entering the
intersection supported trial court's findings that the
firefighter did not act in good faith, defeating the
defense of qualified immunity and, further, acted
recklessly. The defendant was not entitled to the
statutory cap on damages under TCPRC § 108.002
because he did not have insurance for the first
$100,000 -- his $100,000 insurance policy had a self-
insured retention of equal amount; and, the City had
no duty to indemnify him because he was grossly
negligent. Green v. Dwainia
Alford, (Tex. App. -- Houston [14th] 7/15/08).
Subrogation. Subcontractor agrees to
indemnify general contractor or property owner for any
damage subcontractor causes in the performance of
its work. The owner's property sustains water
damage as the result of subcontractor's work
installing a valve. Subcontractor's insurer pays owner
for the damage and insurer brings this subrogation
action in the name of the subcontractor to recoup the
loss from the valve manufacturer. The Court holds
that the subcontractor has standing to bring an
equitable subrogation claim because 1) there was
evidence that the damages (debt) were primarily
owed by another (the manufacturer), 2) the payment
was involuntary in that the subcontractor was
contractually obligated to pay, and 3) the manufacturer
would be unjustly enriched if it was allowed to avoid
responsibility. The Court defers the questions of
whether the subcontractor's own negligence caused
the damages and whether, as such, the
subcontractor should be barred from, in effect,
pursuing contribution from the manufacturer
or the owner's claims against the manufacturer, two
actions a tortfeasor is ordinarily not permitted to do.
The Court holds that it is only addressing the
subcontractor's standing to bring the subgrogation
claim, not the merits. Frymire Engineering Company
Inc. v. Jomar International, Ltd, __ S.W.3rd __
(Tex. 6/13/08).
Recent Opinions Contd Next Column
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Hurrican Ike
The State Bar has created a page for those affected by
Ike and for those willing to assist. Click here to get
information or to extend an hand.
The Austin Bar Foundation has decided to get the ball
rolling by donating $1,000 for needs such as office
space, housing, and office supplies and equipment. If
you can offer to help in any of these areas, please
email ikeresponse@texasbar.com and the State Bar
of Texas will match your offer with a request for help
from an attorney in need.
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2009 Travis County District Court Calendar
The 2009 Jury/Non-Jury Week Schedule is available
here.
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Mediation Calendar
To facilitate scheduling, my mediation calendar is
now online. You can access it from my website www.mcmediate.
com which also provides an e-mail link to
schedule or hold a date for mediation.
There are no travel or additional charges for
mediations within 100 miles of Austin.
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In Closing
I am committed to providing the most productive and
professional mediation service possible. I welcome
your comments and your suggestions about any and
all aspects of the mediation process.
Use the Forward Email link below to send this
newsletter to anyone you think might have an
interest in receiving it. If you are already overwhelmed
with e-mail and do not want to receive future issues,
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Best Regards,
Michael Curry
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Recent Opinions Contd
Arbitration. A fraudulent-inducement claim
advanced to avoid an arbitration provision in a
settlement agreement is contractually barred when
the arms length agreement between sophisticated
parties represented by counsel contained a
negotiated unambiguous waiver-of-reliance provision.
The provision conclusively negated the element of
reliance needed to support the fraudulent-inducement
claim. Forest Oil Corp. et al v.
McAllen et al, __ S.W.3rd__ (Tex. 8/29/08).
Limitations. The Court holds that fraudulent
concealment of wrongdoing will not toll the statute of
limitations when, notwithstanding such concealment,
the Plaintiff could have discovered the existence of a
claim through the exercise of reasonable diligence.
Also, although "[t]he absence from this state of a
person against whom a cause of action may be
maintained suspends the running of the applicable
statute of limitations for the period of the person's
absence" a person who is not physically present in
the state will not be considered absent when he has
sufficient contacts with the State to afford personal
jurisdiction under the longarm statute. Kerlin, et al v. Sauceda, et
al, __S.W.3rd__ (Tex. 8/29/08).
Contracts. Seller agreed to provide backup
information for construction and engineering
costs three weeks before the proposed closing date.
Seller was late in providing the information and Buyer
terminated the contract. The Court of Appeals holds
that the breach was not material notwithstanding a
boilerplate "time is of the essence" clause. The
surrounding circumstances indicate that the parties
did not intend that a failure to meet this particular
deadline would constitute a material breach justifying
termination of the contract. MHI Partnership Ltd
v. DH Real Estate Investment Company,
__S.W.3rd __ (Tex. Civ. App. -- Austin 8/20/08).
Contracts/Attorney's Fees. Attorney
engagement letter which described the work to be
performed, set forth an hourly rate for fees, and
specified a retainer amount was not ambiguous;
the client's testimony that there was an agreed cap on
fees was barred under the parole evidence rule. David J. Sacks P.C. v. Haden et
al, __S.W.3rd__(Tex. 7/11/08).
Partnership. A limited partnership was sued
and service was effected on the general partner. The
Court states that in a suit against a partner, citation
served on that partner authorizes judgment against
the partnership as well. But the Court holds that this
suit was against the partnership and service on a
partner does not authorize a a default judgment
against him when he had not been named as a
defendant. Kao Holdings, LP v. Young,
__S.W.3rd __ (Tex. 6/13/08).
Medical Malpractice. Medical malpractice
claim contending that medical errors resulted in
permanent loss of brain function. Plaintiffs timely filed
medical reports but trial court sustained Defendants'
objections thereto and granted Plaintiffs a 30 day
grace period to amend. Defendants brought this
mandamus action seeking relief from the 30 day
extension order. After 4 years on appeal, the Court
holds that mandamus should not properly issue and
the plaintiffs should be given their 30 day extension.
In Re Susan Roberts,
__S.W.3rd__(Tex. 6/6/08).
Asbestos Litigation/Retroactive Law. Court of
Appeals holds that Texas statute limiting asbestos
litigation recoveries was an unconstitutional
retroactive law as applied to the plaintiff's pending
lawsuit because it impaired the plaintiff's vested
rights without giving her an opportunity to preserve
them. Satterfield v. Crown
Cork & Seal Company, __ S.W.3rd __ (Tex App. --
Austin (8/29/08).
Employment. Fired employee brings
Whistleblower suit alleging that he was was fired in
retaliation for filing a grievance claiming age and race
discrimination. Court grants plea to the jurisdiction
holding that claim should have been brought under
the the Commission on Human Rights Act: The
CHRA provides the exclusive state statutory
remedy for public employees alleging retaliation
arising from activities protected under the Act. A
public employee pursuing a state statutory remedy for
retaliation arising from the employee's opposition to
conduct made unlawful under the Act may only
recover if he satisfies the requirements of the Act. City of Waco v. Lopez,
__S.W.3rd__ (Tex. 7/11/08).
Employment. Non-compete agreement
signed by employee after he had been employed for
some years and after he had received confidential
information and training was unsupported by
consideration and, therefore, unenforceable. Powerhouse Productions
Inc, v. Scott, __ S.W.3rd __ (Tex. App. -- Dallas
8/8/08).
Evidence. Trial court abused its discretion in
permitting fact witness to be cross-examined using
her ongoing treatment for depression and panic
attacks. Absent evidence that the illness or its
treatment affected her perception or memory of
events it was improper to admit her mental health
information for impeachment purposes. Torres v. Danny's
Service Company, __ S.W.3rd __ (Tex. App. --
Eastland 7/17/08).
Oil and Gas. Plaintiffs, the owners of mineral
interests, sued the owner/operator of adjoining tract
( who was also the operator of Plaintiff's tract)
alleging that Defendant had illegally drained gas
from Plaintiff's tract. The Court holds that while a
lessor with a reversionary interest has standing to
bring suit for a subsurface trespass, damages for
drainage by hydraulic fracturing are precluded by the
rule of capture. The Court also holds that the proper
measure of damages for an operator's breach of it's
duty to act prudently to protect against drainage is the
value of the royalty lost to the lessor because of the
lessee's failure to act as a reasonably prudent
operator. Coastal Oil and Gas Corp. v.
Garza Energy Trust, __S.W.3rd__ (Tex. 8/29/08).
Comparative Responsibility. The Court holds
that a party who seeks damages for death or
personal
injury under a UCC Article 2 breach of implied
warranty claim seeks damages in tort and is therefore
subject to the proportionate responsibility scheme in
Chapter 33 (1995) including the bar to recovery if he is
found to be more than 50% responsible.
JCW Electronics, Inc. v. Garza
et
al, __S.W.3rd__
(Tex.6/27/08).
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