In this edition of Litigation Roundup, Texas touts what could be a first-of-its-kind settlement with an artificial intelligence company accused of misleading customers about the reliability of the product, The Wall Street Journal secures a ruling upholding the strength of its subscription agreements, and the full Fifth Circuit agrees to rehear a case involving a Houston personal injury law firm and a former associate.
Judge Isgur Refers Jackson Walker for Possible Disciplinary Proceedings, Recuses in Bankruptcy Fee Case
In the two-page order, Judge Marvin Isgur also recused himself from all disputes “between the United States Trustee and Jackson Walker that relate to alleged non-disclosure issues by Jackson Walker.” The order was issued in the Chapter 11 bankruptcy case of Altera Infrastructure Project Services, in which former judge David Jones acted as a mediator and Jackson Walker represented a party.
Texas Appeals Ruling Upholding State Fair’s Gun Ban to Fifteenth COA
The Fifteenth Court of Appeals, which opened and began accepting cases Sept. 1, will be tasked with determining whether Dallas County District Judge Emily Tobolowsky got it right when she rejected Texas’ request to halt a ban on guns at the State Fair. Texas has argued it pursued litigation to protect citizens’ gun rights. The defendants argue this case is actually about property rights.
PlainsCapital Bank Wants $50M+ Lawsuit Transferred to 15th COA, Guarantors Do Not
A main point of contention in the briefing is whether the dispute centers on a bank loan — which would deprive the Fifteenth Court of Appeals of exclusive jurisdiction over the case under Texas Government Code section 25A.001(14) — or if it centers instead on a guaranty agreement. In the underlying case, parties on both sides of the dispute claim to have been the victims of a Ponzi scheme.
Challenge to 15th COA Transfer is Filed
The jurisdiction of the state’s new Fifteenth Court of Appeals has been challenged by a party in a dispute that had been on appeal before the First Court of Appeals in Houston. A total of 88 cases have been transferred to the Fifteenth Court of Appeals.
Texas Biz Courts are Open, But Filings Trickle In
In the four days since the Texas business courts opened for, well, business, only four cases have been filed. The high-dollar disputes will be adjudicated by new judges in the divisions covering Houston, Dallas and Austin. Attorneys from Bell Nunnally & Martin earned the title of first to file in the new courts.
Litigation Roundup: Shareholders Accuse American Airlines of Securities Violations
In this edition of Litigation Roundup, a poker house’s appellate gamble pays off, Texas draws suit over a three-year old anti-ESG law, and a lawsuit that was seeking more than $7 billion in damages gets booted from Texas courts.
Houston Jury Finds HCA Healthcare Owes Doctors $25.6M
The group of doctors, Fondren Orthopedic, and HCA, a Nashville for-profit operator of healthcare facilities across the country, were in a limited partnership that owns and operates Texas Orthopedic Hospital. Fondren filed suit in October 2021, accusing HCA of violating a noncompete agreement by allowing 10 competing hospitals in the Houston area to offer similar services.
Governor Appoints David Gunn to First COA
The governor on Tuesday appointed David Gunn, 63, of Beck Redden to serve as the newest justice on the First Court of Appeals in Houston. He is filling the seat vacated by April Farris, who was appointed to the Fifteenth Court of Appeals by Gov. Greg Abbott in June. Justice Gunn’s term will expire in December 2026.
Judge Schedules Deposition of Ex-Judge Jones, Sorts Out Discovery Dispute Between Jackson Walker, U.S. Trustee
During a hearing Tuesday Chief U.S. bankruptcy Judge Eduardo Rodriguez brushed aside scheduling concerns the parties raised and ordered that Albert Alonzo, who served as case manager to former Judge David Jones for more than a decade, be deposed on Sept. 18. Jones, who resigned his office after public revelations that he had a secret romantic relationship with a Jackson Walker bankruptcy partner, will be deposed in the same courtroom, under the supervision of Chief Judge Rodriguez, the following day.