Free Speech, Due Process and Trial by Jury
A 2003 tort reform law limits Honda’s liability because its ceiling-mounted detachable seatbelt system met federal safety regulations. The case presented novel questions about the interplay of state law and federal regulations. The large jury verdict was considered by some lawyers to be a so-called “nuclear verdict” ripe for reversal.
The U.S. Supreme Court heard arguments in 10 cases during the 2023-24 term that came from the U.S. Court of Appeals for the Fifth Circuit. It reversed the Fifth Circuit seven times.
The U.S. Supreme Court’s decision Thursday that defendants in fraud cases have the right to a civil jury trial in cases in which the U.S. Securities and Exchange Commission seeks financial penalties appears to be broad and sweeping but may have only minimal impact on SEC enforcement actions. But legal experts say that the decision could have a significant impact on settlements with the SEC. The SEC’s case against George Jarkesy, a Texas hedge fund manager and conservative radio talk show host, dates back to 2013 when the government claims that Jarkesy defrauded investors by falsely leading them to believe that KPMG was auditing two funds he launched. The SEC brought their case in an administrative proceeding before an SEC-appointed ALJ. The SEC hit Jarkesy and a co-defendant with $300,000 in penalties and ordered Jarkesy’s fund, Patriot28, to disgorge about $685,000 in ill-gotten gains.
Also, click here to see the list of Fifth Circuit cases handled by the Supreme Court this term.
The Texas Supreme Court kept alive the lawsuit filed by Travis Central Appraisal District over a landfill’s slashed property valuation but returned the case to the district court on substantially narrowed grounds. The court sided with Texas Disposal System in removing the appraiser’s fair market value claim but will allow market value evidence to be heard. The tax dispute centers on an unusual property that also houses exotic animals and hosts private parties.
During oral arguments, much of the court’s questioning centered around whether Texas had proven scienter, or that Dr. Richard Malouf knew he was violating the statute when he submitted 1,842 claims for reimbursement, which is required for the judgment against Malouf to stand. But that was not the issue that carried the day for Malouf.
Paul, who argues that what happened to him in this case is “a stunning episode of Wild West justice,” filed his petition on June 13. The Mitte Foundation, which alleges Paul’s petition contains “many factual misstatements,” has until July 18 to file a response. The petition asks the U.S. Supreme Court to answer two questions: 1. Whether a criminal-contempt prosecution by an interested private party violates the Due Process Clause. 2. Whether sentencing a criminal defendant to jail via email, in absentia and without the opportunity to address the judge, violates the Due Process Clause or the Sixth Amendment.
In this edition of Litigation Roundup, we detail two new changes in rules governing attorneys who practice before the U.S. Court of Appeals for the Fifth Circuit, a jury in Harris County issues a $17 million verdict in a seven-year-old lawsuit and Whataburger goes to court to defend its trademark.
Rounding out appointments to the newly created business courts, Gov. Greg Abbott announced on Friday Sofia Androgué and Grant Dorfman will be the inaugural appointees to the Houston division.
© Copyright 2026 The Texas Lawbook
The content on this website is protected under federal Copyright laws. Any use without the consent of The Texas Lawbook is prohibited.