Free Speech, Due Process and Trial by Jury
In this edition of Litigation Roundup, the federal government wades into an antitrust lawsuit Texas launched against a trio of asset managers alleging coal market manipulation, and the Fifth Court of Appeals in Dallas hears oral arguments in a $19.7 million loan dispute between former partners in a real estate firm.
Justice James P. Sullivan wrote the court’s unanimous 8-0 ruling in favor of American Midstream, holding the $6.1 million win for Rainbow Energy Marketing cannot stand. Justice Sullivan explained that when a Harris County trial judge “impermissibly blue-penciled extra words” into the parties’ contract, it caused a “cascade of errors that we now correct.” Justice John P. Devine did not participate in the decision.
McDermott, a key contractor on the multibillion-dollar Freeport LNG facility, faced lawsuits seeking nearly $2 billion in damages. Freeport’s insurers sought over $1.3 billion in subrogation claims, while Freeport LNG itself alleged design defects. Both lawsuits were filed as adversary proceedings in the bankruptcy of McDermott’s joint venture partner, Zachry Construction. The cases involved complex engineering and contract issues among multiple partners. The cases involved complex engineering and contract issues among multiple partners. Ultimately, the insurers’ claims were dismissed as well as the consequential damages portion of the defect suit, though the insurers have appealed the dismissal. For navigating the complexities, McDermott's in-house legal team is one of two finalists for the 2025 Houston Corporate Counsel Award for Business Litigation of the Year. The award will be presented by the Association of Corporate Counsel’s Houston Chapter and The Texas Lawbook on Thursday at the Four Seasons in Houston.
In a seven-page concurrence, Fifth Circuit Judge James C. Ho accused the U.S. Supreme Court of affording “special treatment” to “favored litigants” in a case involving deportation under the Alien Enemies Act. And he stood up for U.S. District Judge James Wesley Hendrix, writing that he had "conducted himself in a reasonable and indeed admirable manner,” calling the U.S. Supreme Court’s criticism of his actions in the underlying case “unwarranted and unfortunate.”
Recently, trial teams from Gibbs & Bruns convinced two Harris County juries to return complete defense wins for two of its clients, one that was facing as much as $13.7 million in liability and another that was fighting claims seeking more than $20 million in damages.
In this edition of Litigation Roundup, we detail two recent Texas Supreme Court rulings defining the contours of the Texas Citizens Participation Act, the whole Fifth Circuit unites to overturn a 45-year-old binding precedent in a lawsuit between a Houston plaintiffs firm and a former associate, and in another Fifth Circuit ruling, a panel upholds a $26.5 million award for a man injured in a collision with a letter carrier, writing that it wouldn’t “manufacture inequity, uncertainty, and arbitrariness” by adopting arguments presented by the Department of Justice in that case.
Baker Hughes shifted from defendant to plaintiff in a years-long legal battle with LiquidPower Specialty Products, overcoming patent infringement claims through inter partes review while building a strong antitrust case. This strategy, spanning U.S. and Canadian courts and the Patent Office, enabled Baker Hughes to settle in December 2024 and clear the way for a new product launch. Vice President of Litigation Teresa Garcia-Reyes, who oversees about 80 attorneys, emphasized the high stakes involved. “We are an energy technology company, so we take IP cases and the effect that they have on the ability to market our products very seriously,” she said. “There was real money at stake here, and it had been going on for so long, that it was nice to drive this one to closure.” The Association of Corporate Counsel’s Houston Chapter and The Texas Lawbook congratulate Garcia-Reyes for being selected as one of two finalists for the 2025 Houston Corporate Counsel Award for Business Litigation of the Year. The awards ceremony is set for May 22 at the Four Seasons downtown.
Jurors in Harris County this week awarded the family of a man who was killed at a construction site a total of $640 million, most of which came in the form of a whopping $480 million assessment of punitive damages against Houston-based TNT Crane & Rigging. A day before the jury assessed punitive damages, counsel for TNT had asked the court in an emergency motion for a mistrial, dismissal of the punitive damages phase of trial and sanctions against plaintiffs counsel, Tony Buzbee.
In this edition of Litigation Roundup, a Dallas law firm gets another favorable verdict in a mesothelioma trial against Johnson & Johnson, a federal judge in McAllen hands out prison sentences for participants in a $110 million kickback scheme, and the Texas Supreme Court clarifies the limitations of a state law that prohibits the unlawful solicitation of legal clients.
A little more than a week after Google and Texas told the state’s supreme court they were in settlement negotiations that could end litigation in a consumer protection lawsuit, Texas on Friday afternoon announced a $1.375 billion settlement with the tech giant. Attorney General Ken Paxton issued a statement calling the settlement of the state Deceptive Trade Practices Act claims “a major win for Texans’ privacy” and said it “tells companies that they will pay for abusing our trust.”
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