Free Speech, Due Process and Trial by Jury
Cole, a nationally recognized expert on tax controversies and tax litigation, is expected to join K&E in October. His lateral hiring is the latest in a variety of moves by firms to beef up their energy practices. Mark Curriden has the details.
A federal jury in Austin slapped Facebook and Instagram and its parent, Meta Platforms with a $174.5 million verdict Wednesday, finding that the social media giant infringed on patented technology developed by messaging app maker Voxer. The case is a win for law firms Quinn Emanual and Mann Tindel Thompson.
Lawyers for Houston-based Apache Corp. failed to convince a federal judge to toss out a proposed securities class action claiming that company leaders misled investors about an announcement in 2016 of “transformational discovery” of a West Texas shale play called Alpine High. A magistrate in Houston has recommended that the case move forward because the plaintiffs’ complaint is sufficiently detailed and specific in its allegations that company officials knew the information they made public in 2016 was “materially false.”
A federal appeals court panel, in a 2-1 decision Friday, upheld the Texas law that prohibited large social media companies, such as Twitter, Facebook and YouTube, from deleting a user’s comments and content even if the media platforms believe the content is harmful or extreme. A three-judge panel of the Fifth Circuit ruled the 2021 law, known as HB 20, "chills no speech whatsoever. To the extent it chills anything, it chills censorship.” The dissent said the U.S. Supreme Court will have the last word.
Over the objection of a single power generator and distributor, U.S. Bankruptcy Chief Judge David Jones of Houston gave “conditional approval” of a multibillion-dollar preliminary settlement agreement – aka a “disclosure statement” – in the Brazos Electric Power Cooperative bankruptcy case. The 74-minute hearing was intense at times because of an exchange with a lawyer for South Texas Electric Coop, but Judge Jones said Brazos’ “very complicated” 172-page proposed agreement “strikes a very nice balance.”
Brazos Electric Power Cooperative is expected to file a final plan within days with a Houston judge that will map the Central Texas power supplier’s road out of bankruptcy and toward financial stability, according to lawyers involved in the litigation. The proposed plan reduces the amount that Waco-based Brazos owes ERCOT by hundreds of millions of dollars, requires Brazos to sell three of its power plants, creates a fund for low-income residents struggling with high electric bills and raises more than $1.5 billion in financing, according to court documents filed in the case.
The UK-based movie theater chain has filed for bankruptcy protection in the Southern District of Texas. The case has been assigned to Bankruptcy Judge Marvin Isgur in Houston.
Federal appellate judges almost never resign; and they never ever go back to practicing law. Gregg Costa, the Houston federal prosecutor who sent billionaire financial fraudster Allen Stanford to prison in 2012 and then was appointed to the U.S. Court of Appeals for the Fifth Circuit by President Obama, is doing both. Costa is giving up his black robe and the lifetime job security of a federal judgeship to join the Houston office of Gibson Dunn as co-lead of the firm’s global litigation and trial practice.
Costa is moving his Houston office seven blocks. His new Gibson Dunn office at is about one-tenth the size of his 3,000-square-foot suite at the federal courthouse, but he is getting a bit of a compensation boost. The Texas Lawbook talked with Costa exclusively and has the details.
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?
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
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