Industry groups argue the burden of proof as to whether property damage is caused by a covered or uncovered cause has erroneously shifted to policyholders when it should be on the insurers. As hurricane season approaches its traditional peak in the state, the Texas Supreme Court will hear oral arguments on Sept. 21 in the dispute that could have major implications for insurance policyholders.
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Brazos Electric Bankruptcy Heads to Finish Line
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.
Cineworld Hires Kirkland, Jackson Walker, Alix Partners for Chapter 11
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.
Kirkland, VE, Akin Gump Advise on $5.2B EQT/Quantum Energy Bolt-On Deal
The deal marks yet another consolidation in the sourcing, transportation and processing of LNG, this time in the Marcellus and Utica Shales. The Lawbook has the names of the Texas lawyers involved.
Texas Capital Bank Sheds Insurance Premium Finance Unit to Truist for $3.4B
The move is part of Dallas-based Texas Capital’s strategy to re-focus its capital and expenses for the creation of a full-service financial services firm in the state. Texas Capital CLO Anna Alvarado tapped Cravath to guide it through the deal while Truist turned to lawyers at Willkie.
Former SCOTX Justice Eva Guzman Jumps to Houston Litigation Firm
Eva Guzman, who launched a failed bid to unseat Texas Attorney General Ken Paxton after resigning from the court last summer, will start at Wright Close & Barger on Sept. 12.
Fifth Circuit Judge Joins Gibson Dunn
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.
CDT Roundup: 9 Deals, 9 Firms, 62 Lawyers, $2.3B
Sure, oil and gas transactions are still a big deal in the Texas deal markets. But starting just a few years ago, other business sectors are beginning to make their presence felt in the Lone Star State. Peruse the deals in this week’s CDT Roundup and note the rising role of technology. The Lawbook’s Claire Poole has a few observations on the trend, along with the names of last week’s dealmakers.
Texas Supreme Court Accepts ERCOT’s Appeal over Immunity
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?
V&E Counsels Brigham Minerals on $4.8B Stock Merger with Sitio
The combination would create a leader in the oil and gas mineral and royalty sector. Claire Poole has the details of the deal and the names of the lawyers involved.