The Supreme Court of Texas has completed its first week of oral arguments of the 2024-25 term. Here is a preview of key business cases currently on the Court’s argument docket.
Business Courts
In an opinion issued before the first argument of the term, the Texas Supreme Court held in In re Dallas County that the newly created Fifteenth Court of Appeals satisfies geographic, jurisdictional and judicial appointment requirements under the Texas Constitution. Because SB 1045 confers original and exclusive jurisdiction on the Texas Supreme Court to address any constitutional challenges to the business court system, expect other challenges to come before the court during the coming term.
https://search.txcourts.gov/Case.aspx?cn=24-0426&coa=cossup
Energy
In ConocoPhillips Co. v. Hahn, the Texas Supreme Court will address the impact on a nonparticipating royalty interest of subsequent ratification and stipulation agreements. The case was argued Sept. 12.
https://search.txcourts.gov/Case.aspx?cn=23-0024&coa=cossup
Fiduciary Duties
The Texas Supreme Court currently has two cases on its docket addressing fiduciary duties.
First, in Pitts v. Rivas, the court will address whether clients’ fraud and breach of fiduciary duty claims against their accountants qualify as claims for professional negligence barred by the anti-fracturing rule and whether the accountants owed fiduciary duties to the plaintiffs. The case was argued Sept. 11.
https://search.txcourts.gov/Case.aspx?cn=23-0427&coa=cossup
Second, Bertucci v. Watkins challenges the “control test” used by some courts of appeals to impose fiduciary duties on a limited partner towards other limited partners based on the exercise of control over the affairs of the limited partnership. The case was argued on Oct. 2.
https://search.txcourts.gov/Case.aspx?cn=23-0329&coa=cossup
Insurance
Ohio Cas. Ins. Co. v. Patterson-UTI Energy, Inc. arises in the context of an insurance dispute over payment for defense costs and raises the question whether the scope of an excess policy that follows the form of the primary policy should be assessed as a question of coverage (on which the insured bears the burden) or a question of exclusion (in which coverage is initially presumed and the insurer bears the burden of establishing a coverage exception). Argument will be held Oct. 30.
https://search.txcourts.gov/Case.aspx?cn=23-0006&coa=cossup
Jurisdiction and Venue
Two cases on the argument docket raise questions of jurisdiction over foreign corporations and the proper venue for events outside of Texas.
In BRP-Rotax GmbH v. Shaik, the Texas Supreme Court will resolve whether an Austrian manufacturer of airplane engines is subject to specific jurisdiction in Texas based on sales by multiple, independent actors in the distribution chain that result in the engine being used in Texas. The case was argued on Oct. 1.
https://search.txcourts.gov/Case.aspx?cn=23-0756&coa=cossup
In re Pinnergy, Ltd. raises questions regarding whether defendants’ in-state business contacts and the availability of technology for discovery and potential trial testimony support a Harris County venue in a case arising out of a Louisiana accident involving plaintiffs residing outside Texas. Oral argument is scheduled for Oct. 30.
https://search.txcourts.gov/Case.aspx?cn=23-0777&coa=cossup
Real Property
The Texas Supreme Court will hear two cases raising real property issues.
First, in 425 Soledad, Ltd. v. CRVI Riverwalk Hosp., LLC, the court will address whether a creditor’s bona fide protections from an unrecorded easement pass to a subsequent purchaser if the property is purchased through a receivership sale rather than through foreclosure. The case will be argued Oct. 3.
https://search.txcourts.gov/Case.aspx?cn=23-0344&coa=cossup
Second, Commons of Lake Houston, Ltd. v. City of Houston asks the court to resolve whether inverse condemnation and takings claims under the Texas Constitution are subject to exceptions for valid floodplain regulations and valid exercises of the police power. Oral argument will be held Oct. 31.
https://search.txcourts.gov/Case.aspx?cn=23-0474&coa=cossup
Torts
Werner Enterprises, Inc. v. Blake is a wrongful death case raising numerous tort law issues including proximate cause, the scope of tort law duties and the application of vicarious liability theories to employers who admit responsibility for the acts of their employees. Argument is scheduled for Dec. 3.
https://search.txcourts.gov/Case.aspx?cn=23-0493&coa=cossup
Ben Mesches is a partner and leader of the appellate practice group at Haynes and Boone.
Ryan Paulsen is a counsel in Haynes and Boone’s appellate practice group.