The Texas Lawbook

Free Speech, Due Process and Trial by Jury

Appellate

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.

Texas Supreme Court Answers Certified Questions in a Way that Package Liquor Stores Worry May Open Floodgates to Big Retailers

The court answered certified questions from the Fifth Circuit asking it to interpret state liquor laws banning public corporations from owning package-store permits in Texas. But, in doing so, justices determine an exempt corporation, exempted by a grandfather clause that allows a public corporation to own liquor stores, should not forfeit its exemption by selling interests to ease debt in a Chapter 11 reorganization.

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