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.
Texas Lawbook Hires Law360 Litigation Reporter Michelle Casady
Michelle Casady joins Natalie Posgate, who has been with The Lawbook for a decade, and former Dallas Morning News writer and editor Bruce Tomaso in covering litigation for The Lawbook.
“Michelle’s tremendous experience and knowledge in covering Texas courts will mean The Lawbook will provide our readers with more breaking news stories and more in-depth coverage of litigation trends and personalities than ever before at any news publication in Texas,” said Posgate. “Michelle is a highly respected and gifted reporter and we are greatly pleased to be working with her now as a colleague rather than against her as a competitor.”
Fifth Circuit Invites Constitutional Challenges to SEC’s ‘No Admit, No Deny’ Policy
A handful of Fifth Circuit judges seem to have it out for the U.S. Securities and Exchange Commission and “the agency’s current activism.” Two judges issued a concurring opinion that clearly invites defendants being accused of financial fraud to challenge the SEC’s use of “no admit, no deny” settlement agreements. “If you want to settle, SEC’s policy says, ‘Hold your tongue, and don’t say anything truthful – ever’ — or get bankrupted by having to continue litigating with the SEC,” Judge Edith Jones wrote. “A more effective prior restraint is hard to imagine.”
The Texas Lawbook has insight from several legal experts who say they understand Judge Jones’ concerns but say eliminating the “no admit, no deny” provisions in settlements would cause tremendous upheaval in the system and place defendants at an even bigger disadvantage in their negotiations with the federal agency.
Law Experts: Firms Need to Take TX Freedom Caucus Threats on Abortion Assistance Seriously
Corporate law firms should not ignore nor routinely dismiss threats made last week by Texas Republican legislators that they will punish law partners who fund travel for Texas employees who go to other states to have abortions. Leading academic experts who studied the Texas Freedom Caucus letter to Sidley say law firms “should treat this like any other legal challenge” and “throw all the resources and knowledge they have … to analyze any potential legal risk than a collection of legislators who don’t seem to understand what the law is or how the law works.”
Texas Law Firms Gird for Battle Against GOP Leaders’ Threats for Providing Abortion Options to Employees
A handful of conservative Republicans are threatening corporate law firms operating in Texas with criminal prosecution, civil sanctions and even disbarment if they play any role in their Texas employees going out of state to get abortions. Texas Freedom Caucus accuses the global law firm Sidley Austin of being “complicit in illegal abortions” and assert the “consequences that you and your colleagues will face for these actions.” But leaders at several law firms tell The Texas Lawbook that the threats are “extreme political debauchery and legally dubious.”
Wave of Lateral Moves Hits Texas Legal Market
Willkie Farr, Greenberg Traurig, McKool Smith, Munck Wilson, Perkins Coie, Blank Rome, Womble and Eversheds Sutherland announced new lateral partner hires this week in their Texas offices. The nine lawyers on the move came from Baker Botts, King & Spalding, Winstead, Norton Rose Fulbright, Gray Reed, Shore Chan and in-house.
Brazos Legal/Financial Advisor Fees Hit $80M
As Brazos Electric Co-op edges closer to a solution in its $1.9 billion bankruptcy case, the Waco-based power retailer is discovering the cost of getting a resolution is not cheap. The lawyers and financial advisors working on the Brazos restructuring for the past 15 months have already billed nearly $80 million for their services, according to court records. The final price tag will likely exceed $100 million, according to lawyers involved in the case. The Texas Lawbook has the details.
Brazos Electric Co-op Nears Deal in Bankruptcy
Brazos Electric Power Cooperative has reached an agreement in principle with most of its creditors that could result in the Waco-based power supplier exiting bankruptcy by fall. The agreement, which has the support of ERCOT and power generators such as Calpine, calls for Brazos to sell some assets, provides concessions from the power generators and allows Brazos to exit bankruptcy with its co-op structure. But there are still major hurdles ahead.
Alana Matthews Leaves Dallas Stars to Be Pioneering Entrepreneur
Last month, Matthews left the Dallas Stars to pursue another deeply-held passion: creating a business that focuses exclusively on custom-made luxury workwear for professional women.
Louisiana Federal Magistrate Nominated to Be First African American Woman in Fifth Circuit
President Joseph Biden has nominated U.S. Magistrate Dana Douglas of New Orleans to one of two open seats on the U.S. Court of Appeals for the Fifth Circuit. An African American jurist who practiced energy litigation, products liability and intellectual property law during her 17 years in corporate law, Judge Douglas would be the first woman of color to serve on the Fifth Circuit.