The Texas Lawbook

Free Speech, Due Process and Trial by Jury

Appellate

Texas Supreme Court Told Whistleblower Act Doesn’t Apply To AG Paxton 

In a brief on the merits filed Wednesday, the Office of the Attorney General argued a whistleblower lawsuit brought against him by former high-ranking attorneys in the office should be dismissed because the Texas Whistleblower Act doesn’t apply to him. Carlos Soltero of Soltero Sapire Murrell, who represents one of the whistleblowers, told The Texas Lawbook he’s confident the Texas Supreme Court — like the Austin Court of Appeals panel and a Travis County District Court judge who have allowed the case to move forward — will find no merit in the argument.

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.

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.

Both Sides Cry Foul in a Jurisdictional Dispute Over Volkswagen’s Emissions-Cheating Scandal

After what seemed a last-minute recusal in a case with millions on the line, the Texas Supreme Court asked for the governor’s appointment of two temporary justices to break a probable stalemate in reaching a resolution in the Volkswagen emissions-cheating scandal case. Now the court must determine whether, as VW argues, the governor’s commission of special justices poses due-process violations.

Appeals Court Reverses Nail Polish Verdict

A Houston appellate court has reversed a 2019 jury verdict that awarded European cosmetics distributor Benelux Cosmetics $2.7 million against Houston-based gel nail polish manufacturer GHP Nail Systems and its parent company. The decision by the Fourteenth Court of Appeals is a win for a group lawyers at Hicks Thomas and Wright Close Barger.

‘Sanctuary Cities’ on SCOTX Schedule in Fall, but the Issue is Defamation Protection Under Texas Citizens Participation Act

Two grants, consolidated for argument, raise facts and issues that will capture headlines, but both raise questions under the citizens participation act, the pervasive interlocutory scheme intended to provide a quick dismissal ramp for claims based on free-speech issues. Both cases focus on efforts to create anti-abortion “sanctuary” cities throughout Texas. And both involve an ordinance, the first of several, declaring Waskom to be a sanctuary city. But the proponents didn’t stop there.

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