The Supreme Court of Texas agreed late Friday to hear the two cases brought by electric power companies against the Electric Reliability Council of Texas that involved billions of dollars individually and could impact tens of billions of dollars at stake in thousands of lawsuits related to Winter Storm Uri. The two cases, which are unrelated to each other, are likely to be argued jointly because the same questions are at the heart of both matters: Is ERCOT a division of state government and is it immune from civil lawsuits?
Fifth Circuit Judge Gregg Costa’s Exit Interview: ‘A Monumental Loss’ for the Courts
As Gregg Costa neared graduation at Dartmouth College in 1994, he faced a choice: Follow his dream and go directly to law school or take a couple gap years and get a job. He chose the latter. The decision changed his life forever. Last week, Costa stepped down as a judge on the U.S. Court of Appeals for the Fifth Circuit to return to private practice, stunning nearly everyone in the legal community and left lawyers and judges asking why a 50-year-old just one step away from the U.S. Supreme Court would give up a lifetime appointment.
In an exclusive interview with The Texas Lawbook, Costa said there were a handful of reasons. At 50, he believed he needed a change. The makeup of the Fifth Circuit left the more moderate Costa in the minority on issue after issue. But Costa’s decision to leave the Fifth Circuit – like many of his biggest career choices – can be traced back to Sunflower, Mississippi, an impoverished town of 1,100 and his two years of teaching third and fourth graders.
Photo: Sharon Ferranti
Remembering Harold Kleinman, ‘A Giant of the Legal Profession’ and a Lion of the Texas Bar
Harold Kleinman, a pioneer of the modern-day corporate M&A law practice in Texas, lawyer to some of the state’s biggest businesses and a founding father of Texas Access to Justice, died Friday. He was 91.
For five decades, Kleinman was a lawyer and leader at Thompson & Knight, guiding the firm through extraordinary growth and turning it into a powerhouse in the energy sector. Bar associations, community groups, Jewish organizations and businesses honored Kleinman with award after award. In fact, the State Bar of Texas and Texas Access to Justice named its top honor for commitment to the legal profession the Harold F. Kleinman Award. “I was just a lawyer who represented clients and believed everyone deserved a fair shake under the law,” Kleinman told The Texas Lawbook in 2015. The Lawbook looks at the life and career of one of the greatest corporate lawyers in Texas history.
Porter Hedges Adds Co-Managing Partner
Rob Reedy, who has served as Porter Hedges’ managing partner for 13 years, told The Texas Lawbook that the decision is part of the firm’s leadership succession planning process.
SMU Dedman Law’s Innovative Corporate Counsel Externship Program Shines, Thanks to Loyal GC Alums
During the past decade, 700 SMU Dedman law students have done externships at 100 corporate legal departments including Microsoft, Keurig Dr Pepper, Interstate Batteries, Liberty Mutual and Vistra Corp. “The program puts students in real-life situations where they have educational opportunities unobtainable in the classroom,” SMU Dedman assistant dean Stephen Yeager, creator of the externship initiative. An extern with Keurig Dr Pepper witnessed how different flavored drinks were developed. Fluor Corporation let law students visit construction sites. Mary Kay allowed its Russian-born extern to work on a project involving Russian data privacy laws. The Texas Lawbook interviewed a half-dozen SMU alumni who did externships and are now in-house counsel.
V&E Advises HeartBrand Holdings in Bankruptcy Filing
A South Central Texas wagyu beef company filed for bankruptcy Monday in the Southern District of Texas after getting hit a year ago with a $30 million breach of contract and fraud verdict. Flatonia-based HeartBrand Holdings and its subsidiary American Akaushi Association filed for Chapter 11 citing liabilities between $10 million and $50 million and assets between $50 million and $100 million.
Only Four Texas Corporations Sign Pro-Diversity Briefs in College Admissions Case
The four companies are supporting Harvard University and the University of North Carolina, which have been sued by Students for Fair Admissions, an organization that claims that Asian Americans are being discriminated against when colleges consider race or ethnicity as a factor in admitting students.
Patent Lawyers: WDTX Waco Order Unfair, Misguided and Hypocritical
Since Judge Alan Albright took the federal bench in 2018, businesses and individuals have filed 2,622 lawsuits in Waco accusing others of patent infringement. New statistics show he handles 24 percent of patent disputes in the U.S. – more than any other judge. His cases proceed quickly from filing to finish. Empirical data shows plaintiffs and defendants each win about half of their trials. Judge Albright rules for defendants 90 percent of the time on summary judgment.
This week, the federal judiciary shut down Judge Albright’s patent docket and has started sending his patent cases to other judges. In an in-depth report, The Texas Lawbook looks at the allegations by some tech companies against Judge Albright, reveals new data about his caseload and provides feedback from 19 patent lawyers in Texas. FYI: They are pissed.
WDTX Chief Judge: “Equitably Distribute” Waco Patent Cases to All Judges
The Waco patent rocket docket days may be over. WDTX Chief Judge Orlando Garcia issued an order Monday that requires that all new patent infringement lawsuits filed in the Waco Division be immediately assigned randomly to the district’s 12 federal judges. The order seems designed to end Judge Alan Albright’s three-year run as the federal judge handling the most patent cases in the U.S. The patent litigation bar is speaking out and they are not happy about the new order. The Texas Lawbook has the details.
ERCOT & Panda Face Off Again at Texas Supreme Court
The six-year bear of a legal battle between the Electric Reliability Council of Texas and Panda Power has again reached the Texas Supreme Court. In a case being watched by scores of lawyers in the Winter Storm Uri litigation, ERCOT wants the state’s highest court to declare that it is part of the state government and thus immune from civil lawsuits. Panda claims ERCOT knowingly produced false market data in 2011 and 2012 that led it to invest $2.2 billion to build three new power plants and doesn’t deserve immunity.