In this edition of Litigation Roundup, Texas follows up on its state court lawsuit against proxy advisory firm Institutional Shareholder Services with a lawsuit against Glass, Lewis & Co. in Collin County, and Gray Reed secures a complete defense win for a homebuilder client in a Tarrant County jury trial.
Plus, Former Texas Supreme Court Chief Justice Wallace B. Jefferson, now a partner at Alexander Dubose & Jefferson, has taken on a new title as president of the independent nonprofit American Law Institute. For the next three years he will helm the organization aimed at clarifying, modernizing and improving the law.
“At a time when the country is divided, ALI is a place where leading judges, lawyers, and scholars come together around a common mission,” Jefferson said in a statement. “We can disagree vigorously, but through intellectual debate and compromise, we produce work that is cited in courtrooms, in legislatures, in government offices and in law firms. That is a good model for how Americans can and should be talking to each other.”
The Litigation Roundup is a weekly feature highlighting the work Texas lawyers are doing inside and outside the state. Have a development we should include next week? Please let us know at tlblitigation@texaslawbook.net.
Tarrant County District Court
All Saints Episcopal Sued Over Response to Student’s Spinal Injury
Tillotson Patton and Zehl & Associates have teamed up to represent the family of an All Saints Episcopal School student who was allegedly forced to stand and walk by school administrators while suffering from three fractured vertebrae following an on-campus assault.
According to the 13-page lawsuit filed Monday, a 16-year-old student identified as F.F. was injured by three students who lured him into a hallway under the pretense of filming a video for TikTok. His classmates told him to jump at a specific time for the video, and when he did so, two of them “violently kicked his legs out from under him mid-jump, causing him to land on his thoracic spine and strike his head on the ground.”
He suffered a concussion, broken vertebrae and was temporarily paralyzed, according to the lawsuit that alleges the same students who injured F.F. had done the same thing to at least six other students on campus.
“Upon information and belief, the perpetrators stood over his body laughing, calling him a ‘loser’ and filmed him in his injured and vulnerable state for social media attention,” the lawsuit alleges.
F.F. had a “known spinal history presenting with obvious spinal injury symptoms,” but administrators chose to move him after the assault “without a neck brace or spinal board and forced him to stand and walk with three fractured vertebrae,” the lawsuit alleges.
“No one called an ambulance for more than 45 minutes following the assault,” according to the suit. “The school’s shockingly incompetent emergency response likely aggravated F.F.’s already catastrophic injuries.”
The suit brings claims for negligence, negligent supervision, gross negligence, negligent emergency response and alleges the school breached its “in loco parentis obligations.”
The student is represented by Jeff Tillotson, Mollie E. Mallory and Sara K. Babineaux of Tillotson Patton and Boston C. Mallory of Zehl & Associates.
A case number for the lawsuit wasn’t immediately available Monday.
Gray Reed Gets Defense Win for LGI Homes in Homeowners’ Suit
A group of five homeowners recently failed to convince a jury that the development and construction activities of LGI Homes caused runoff and sediment to enter their neighboring properties.
The jury returned its verdict May 12, after hearing two weeks of testimony and deliberating for about three hours. The homeowners, who lived adjacent to the Oak Ridge subdivision in Fort Worth, filed suit five years ago against LGI, alleging violations of the water code and negligence.
Working through a 46-page jury charge, the panel determined it was not the negligence of LGI that caused the damages allegedly suffered by Mike and Rhonda Canfield, Ramsey and Tara Shoufi, Mike and Dawn Dean, Lisa Anderson Scott and Mary Kelleher and Larry Langston.
The homeowners had alleged that when LGI purchased 100 acres of land for the new subdivision, it cleared hundreds of trees and moved dirt that “dramatically” altered the terrain, increased runoff during storms and rerouted the flow of stormwater and sediment “onto and through plaintiffs’ properties.”
Tarrant County District Judge J. Patrick Gallagher presided over the case.
LGI is represented by Gabe Vick, J.J. Hardig, Justin Cowan and Kendall Hudgins of Gray Reed.
“This result reflects the team’s thorough preparation, strategic advocacy and commitment to achieving successful outcomes for our clients,” Hardig said in a news release.
The homeowners are represented by Brian Heinrich, Tod Mayfield and Kristi Weaber of Mayfield Heinrich Rahlfs Weaber & Parsons.
The case number is 096-322622-21.
Collin County District Court
Texas Sues Glass Lewis a Day After ISS Suit
In a lawsuit filed Thursday, the state of Texas told a Collin County judge that proxy advisory firm Glass, Lewis & Co. has failed to respond to a civil investigative demand as required by the Texas Deceptive Trade Practices Act.
The nine-page lawsuit was filed Thursday, one day after the state filed suit against Institutional Shareholder Services in state district court in Collin County, accusing the firm of prioritizing “its own environmental, social, and governance agenda over the fiscal well-being of its clients.” Texas hired former U.S. Attorney General William Barr and his law firm to bring suit against ISS, but only lawyers from the Texas attorney general’s office appeared on pleadings in the Glass Lewis suit.
In the Glass Lewis lawsuit, Texas notes that in related litigation U.S. District Judge Alan Albright has entered a preliminary injunction barring the state from enforcing SB 2337 against Glass Lewis and ISS. Under that law, proxy advisers are required to tell clients their recommendations are “not provided solely in the financial interest of the shareholders” if they have made the recommendation “wholly or partly based on … one or more nonfinancial factors, including … an environmental, social or governance goal, factor or investment principle” or “diversity, equity or inclusion.”
Earlier this month, Texas asked Judge Albright to clarify whether the injunction impacted its ability to enforce the CID against Glass Lewis, and the court declined to clarify. Texas argued the CID had nothing to do with enforcement of SB 2337 and instead was “an independent investigation for potential violations of the DTPA,” according to court documents.
“The Western District’s language makes clear that OAG is not barred from enforcing its
investigative authority under section 17.61 of the DTPA in the enforcement of its CID,” Texas told the court in the new lawsuit.
Texas is asking the court to order Glass Lewis to comply with the CID, which seeks nine categories of information, to include:
- A list of all institutional investors in Texas who were provided voting advisories by Glass Lewis;
- A list of all institutional investors seeking to redomesticate in Texas who were provided voting advisories;
- Copies of all advisories sent to institutional investors regarding any proposals to redomesticate;
- Copies of any recommendations or advisories sent to institutional investors regarding MercadoLibre’s proposal to redomesticate in Texas;
- Copies of disclaimers or explanations issued about “ESG-oriented decisions”;
- Copies of disclaimers or explanations issued about “potential conflicts of interest”;
- Information regarding the customization of “robovoting” for investors;
- Information that would show how “robovoting” is facilitated; and
- A copy of any documents and information Glass Lewis gave to attorneys general in Florida and Missouri in response to CIDs.
Texas is represented by Scott Froman of the Texas attorney general’s office.
In the federal litigation, Glass Lewis is represented by Bryce L. Callahan, Grant Martinez, Jared LeBrun and Lily Hann of Yetter Coleman.
The case number is 471-03524-2026.
Texas Sues Discord Over Alleged DTPA Violations
Texas has accused online communication platform Discord Inc. of repeatedly violating the Texas Deceptive Trade Practices Act by building and maintaining “one of the internet’s most efficient hunting grounds for manipulation, grooming, and predatory behavior towards children.”
Discord has been warned about the alleged dangers posed by its platform by the U.S. Senate, the Federal Trade Commission and state attorneys general, the lawsuit alleges, but it has “refused to change.”
In particular, the lawsuit alleges Discord’s combination of anonymous users, real-time voice and video, private group channels, direct messaging and a community invitation system make it a “uniquely efficient environment for bad actors.” In a press release issued Friday announcing the lawsuit, Texas tied Discord’s “design choices” to the sexual assault of a 13-year-old Texas girl at the hands of a “predator who groomed her on Discord over several years,” the suicide of a 13-year-old boy, and a 15-year-old boy who committed suicide after allegedly being coerced into producing explicit material.
Through the lawsuit, Texas is seeking to force Discord to make maximum protection the default safety setting for new accounts, implement age verification and pay back revenue derived from its allegedly unlawful conduct.
“Discord has allowed and invited all kinds of nihilistic violence and evil,” Attorney General Ken Paxton said in a news release. “We live in a time where the dangers children face online have never been greater, and every parent in Texas deserves to know their child is protected.”
Texas is represented by Jonathan Stone, Jerry Bergman, John C. Hernandez and Hina Halepota of the Texas attorney general’s office.
A case number and counsel information for Discord were not immediately available Tuesday.
Maricopa County District Court
Gibson Dunn Gets $12M Attorney Fee Award
A team of Gibson, Dunn & Crutcher lawyers who secured a $296 million jury verdict in Arizona in October on behalf of a real estate company client have been awarded $12 million in attorney fees for their work.
On May 12 Superior Court Judge Adele G. Ponce in Maricopa County issued an order awarding the fees and about $20,000 in costs to the team that represented Gray Services and Gray Development Group. After 12 days of trial, a jury determined Florida-based ZOM Holding violated the terms of a May 2019 deal under which the parties were to work together to develop specific projects.
After ZOM terminated the contract and began development on the properties through one of its affiliates, Gray Services brought claims for breach of contract and breach of the duty of good faith and fair dealing, alleging that ZOM could not circumvent its interests.
At trial, ZOM argued the contract Gray Services and Gray Development alleged it breached had been superseded by a different contract. After deliberating for five hours, the jury returned a $296,448,624 verdict, granting the full amount of damages Gray Services sought.
The day before issuing the fee order, Judge Ponce denied ZOM’s motion to overturn the verdict.
The Gray parties were represented by Collin Cox, Sydney Scott, Ben Betner, Bryston Gallegos, Johanna Smith, Kylie Calabrese and Jaime Barrios of Gibson, Dunn & Crutcher.
ZOM Holding is represented by Christopher Callahan of Fennemore Craig.
The case number is CV2022-010650.
Eastern District of Texas
Marshall Jury Says Tesla Battery Provider Owes $3.2M
A jury in Marshall determined Friday that a group of defendants that make battery copper foil for Tesla infringed five patents belonging to SK Nexilis Co. and owe about $3.28 million in damages.
The jury also determined the infringement by Solus Advanced Materials, Volta Energy Solutions and several Volta affiliates was willful. SK filed suit in November 2023, noting that Solus had contracted with Tesla to provide “70 percent of its demand for next-generation battery production in Texas,” and requested damages for actual loss and unjust enrichment.
The jury trial began May 18 and lasted five days. The jury returned its verdict around 3:15 p.m. Friday.
U.S. District Judge Rodney Gilstrap presided over the case.
SK is represented by James Pack, David Elihu, John Yin, David Nelson, Brianne Straka, Harrison Rose, Sean Pak, Kevin Jang and Richard W. Erwine of Quinn Emanuel Urquhart & Sullivan and Deron R. Dacus of The Dacus Law Firm.
The defendants are represented by Daniel Tishman, Michael McKeon, Lauren Degnan, Ralph Phillips, Bryan Cannon, Chet Campbell and Meghana Thadani of Fish & Richardson and Melissa Smith and Andrew “Tom” Gorham of Gillam & Smith.
The case number is 2:23-cv-00539.
U.S. Bankruptcy Court, Southern District of Texas
Haynes Boone Advises Lycra, Reduces Debt by $1.2B
Earlier this month U.S. Bankruptcy Judge Christopher Lopez confirmed The Lycra Company’s Chapter 11 plan, which will reduce the company’s debt by about $1.2 billion.
The global manufacturer of spandex and specialty fibers filed for Chapter 11 bankruptcy March 17, telling the court it had between $100 million and $500 million in assets and between $100 million and $500 million in liabilities. Haynes Boone, which was cocounsel for Lycra alongside Linklaters, said in a news release the company’s consensual Chapter 11 plan “received overwhelming creditor approval.”
Lycra is represented by Arsalan Muhammad, Charles A. Beckham Jr., Kenric Kattner, Kourtney Lyda, David Staab, Imaan Patel, Lauren Sisson, Adam Schmit and Tiffany Cooke of Haynes Boone.
“This restructuring didn’t just stabilize The Lycra Company — it reset the business for a stronger future and positioned it to stretch confidently into its next chapter,” Muhammad said in a news release. “Backed by broad stakeholder support, the company moved through Chapter 11 quickly, protected day-to-day operations and emerged with a healthier balance sheet and greater financial flexibility.”
The case number is 26-90399.
U.S. Court of Appeals for the Fifth Circuit
Win Upheld for McKinney Woman Whose Home Was Destroyed by SWAT Unit
On Friday a three-judge panel unanimously affirmed a trial court’s decision to enter final judgment awarding about $60,000 in damages to a woman whose home was destroyed during a police raid after an armed fugitive held a 15-year-old girl hostage inside.
Vicki Baker’s case had been before the Fifth Circuit before, and the court wiped out the award, holding Baker wasn’t entitled to any compensation under the Fifth Amendment’s takings clause because it was “objectively necessary” for police to damage or destroy her home in order to prevent “imminent harm.”
In February 2024, the Fifth Circuit denied Baker’s rehearing request. Baker then filed a petition for writ of certiorari with the U.S. Supreme Court, which declined to hear the case in November 2024.
Back in Judge Mazzant’s court, Baker filed a motion for “reelection of remedy,” asking the court to allow her to recover her damages under the Texas Constitution’s takings clause, which provides broader protections than its federal analogue.
The court rejected arguments from McKinney that because the Fifth Circuit wiped out the federal claims Baker’s state law claims also died.
“The Court will not punish Baker for making the wrong choice,” Chief Judge Mazzant wrote in his June decision. “She prevailed on her Texas Takings claim. She should be allowed to recover on it.”
The Fifth Circuit affirmed that ruling Friday in a nine-page opinion.
“Indeed, while our court reasoned in Baker I that the necessity exception to the federal Takings Clause precluded Baker’s recovery on her federal claim, it expressly declined to reach, and gave no reason to question, her Texas takings claim,” the court held.
Judges Catharina Haynes, Stephen A. Higginson and James C. Ho sat on the panel.
Baker is represented by Suranjan Sen, William Aronin, Robert McNamara and Jeffrey Redfern of Institute for Justice.
McKinney is represented by Edwin Voss Jr. of Brown & Hofmeister.
The case number is 25-40396.
Craving more Texas Lawbook litigation coverage? Don’t worry, we’ve got you covered. Take a look at these stories you may have missed in the past few days.
The Texas Supreme Court on Friday issued a 5-4 opinion clarifying what amount of bond must be posted in cases with multiple judgment debtors who want to appeal a judgment. The justices narrowly determined that Texas Civil Practice and Remedies Code Section 52.006(b)(2), which applies a $25 million cap on bonds posted to appeal, applies per judgment debtor.
Dallas County Court at Law Judge D’Metria Benson said the mandatory mask mandate that she ordered for all participants in her courtroom is necessary to protect a personal health condition that makes her “highly susceptible to infection.” But the lawyer who originally made the allegations said he has recently witnessed Judge Benson at campaign fundraisers and events where neither the judge nor anyone was wearing a mask.
One of the largest bitcoin ATM operators filed Monday for Chapter 11 bankruptcy in the Southern District of Texas, but company executives say they plan to use the bankruptcy process for “an orderly wind-down of operations and a sale of the company’s assets” because the company’s “current business model is unsustainable.” Vinson & Elkins is leading the bankruptcy for Bitcoin Depot.
Blank Rome announced last week that veteran bankruptcy attorney Buffey Klein is joining their Dallas office. Klein leaves Husch Blackwell after 23 years, the last three as the firm’s Dallas managing partner.
Round Two of a fight between the state of Texas and proxy advisory firm Institutional Shareholder Services is now underway before Round One has ended, after a new lawsuit was filed by the state in Collin County last week. Texas hired former U.S. Attorney General William Barr and his law firm to pursue the claims.
A trucking company was hit with a $49 million jury verdict in West Texas last week. The unanimous jury verdict was returned after three days of trial just before 8 p.m. Wednesday. Steffan Robert Mick, a 29-year-old married father of two, was killed in January 2025 when an OPG Logistics 18-wheeler turned in front of him on a farm-to-market road near Midland.
In the latest edition of Asked & Answered, King & Spalding partner Bruce Hurley reflected on his career and recently being named trial lawyer of the year by the Texas chapter of the American Board of Trial Advocates. Hearing the stories from family who were trial lawyers pushed him toward becoming a trial lawyer himself.
U.S. District Judge Rodney Gilstrap has determined Collision Communications, a patent holder that secured a $445.5 million infringement verdict against Samsung Electronics last year, failed to show it was also entitled to a permanent injunction to prohibit ongoing infringement. The parties argued the issue before Judge Gilstrap May 11 during a roughly two-hour hearing.
Tom Melsheimer and lawyers for Texas Instruments, Intel and two other tech companies told U.S. District Judge Sidney Fitzwater Tuesday that he should dismiss a potential precedent-setting case in which five Ukrainians injured or killed in Russian missile and drone attacks have sued for allegedly providing the microchips that guide the Russian weapons. Melsheimer told the judge that the plaintiffs’ lawsuits are fatally flawed because they fail to directly link the technology companies’ products to horrific attacks on Ukrainians, fail to show misconduct by the chip makers and failed to have filed their lawsuits in a timely manner.
Lawyers from Dallas-based Simon Greenstone Panatier recently secured a $10.2 million jury verdict for a mesothelioma client in Minneapolis. Daniel Heyer and his wife, Nicole Heyer, filed suit against several companies that manufacture talc products in 2025, alleging it was through his use of various cosmetic products that Daniel was exposed to asbestos and contracted the fatal cancer.