In this edition of P.S., our thoughts remain with the victims and survivors of the Hill Country floods. It’s clear that the legal community feels the same — attorneys across the region are stepping up with meaningful efforts to help. We highlight some of those initiatives here. You’ll also find news about a new group of advisory board members for Texas Christian University’s AddRan College of Liberal Arts, which now includes a handful of lawyers. Plus, Haynes Boone attorneys team up with Communities in Schools of Central Texas to inspire the next generation of legal professionals.
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Minority Owner of Cicis Pizza Secures $46M Verdict
After a week of testimony and nearly five hours for jury deliberations, one cousin walked away a winner Wednesday night. The cousins fought over the management fee, distributions and whether they were meeting the requirements of their jobs. The jury returned a $46 million verdict, but the defense will argue Gala has to pick which $23 million claim to recover damages on.
In Landmark Decision, SCOTX Holds that Produced Water Belongs to the Mineral Estate Lessee
The decision provides clarity for upstream and midstream entities, landowners and environmental tech startups grappling with the emerging value of what was once considered merely a wasteful byproduct — produced water — but now, through technological advances in recycling and mineral extraction, has the potential to become a new source of significant revenue.
ACC San Antonio Ethics Award Winner Vincent R. Johnson Reflects on Legal Reform from Watergate to Today
Vincent R. Johnson was an aspiring lawyer when the Watergate scandal was unfolding. Disciplinary proceedings were brought against more than 20 lawyers for misconduct including obstruction of justice and violation of campaign laws, and “it was embarrassing to be a lawyer at that point in time,” Johnson said. But there was no doubt in Johnson’s mind that he wanted to be an attorney. As the ethics professor retires from St. Mary’s University School of Law this year, the Association of Corporate Counsel San Antonio chapter has honored him with its prestigious Lee Cusenbary Ethical Life and Leadership Award. Pictured: Johnson with Lauren Valkenaar at the St. Mary’s Alumni Luncheon in June.
U.S. Trustee Opposes Jackson Walker’s Jury Demand in Bankruptcy Fee Case
The U.S. Trustee’s Office has told Chief U.S. District Judge Alia Moses that Jackson Walker “has no substantive right to a jury trial” in the case where it is trying to claw back millions in fees awarded to the law firm in 33 cases where former bankruptcy judge David Jones served as a mediator or judge.
‘The Right Side of History’ — Texas Law Students Call on Firms to Defend Rule of Law
In response to President Donald Trump’s executive order targeting Susman Godfrey, 57 Texas law students signed a student-led amicus brief supporting the firm and warning of the order’s chilling effect on the legal profession. The Texas Lawbook reached out to the 57 — seven agreed to be interviewed. The students, including organizer Brennan Caruthers, say the amicus brief and their actions were born from a growing frustration among students who felt the legal profession had been largely silent in the face of mounting political pressure.
Texas Charts New Path on AI With Landmark Regulation
Texas has become the second state, after Colorado, to enact omnibus legislation regulating artificial intelligence systems. The Texas Responsible Artificial Intelligence Governance Act establishes a new regulatory framework that applies to developers and deployers of AI systems conducting business in Texas or producing AI products or services used by Texas residents. The passage of the Texas law is noteworthy given that in recent months, Gov. Gavin Newsom of California and Gov. Glenn Youngkin of Virginia each vetoed their respective state’s omnibus AI laws. It remains to be seen whether other states follow Texas’ and Colorado’s lead, or if they avoid omnibus AI laws and focus instead on regulating specific activities, such as the use of deepfakes.
Parties Rest in Emotional Weeklong Cicis Trial
Jury trial in the $10 million dispute between cousins who bought Cicis Pizza’s debt during the COVID-19 global pandemic continues with testimony from one of the cousins and a valuation expert. The plaintiff’s counsel rested its case Monday afternoon, and the defense rested its case Tuesday afternoon.
Mediation Fails in Jackson Walker, U.S. Trustee Bankruptcy Fee Dispute
The multimillion-dollar dispute between Jackson Walker and the U.S. Trustee over legal fees paid to the law firm involved in the Houston bankruptcy court romance scandal looks like it is heading to trial. Lawyers for Jackson Walker informed federal court officials Tuesday that efforts to resolve the litigation through mediation had failed.
LifeScan Hires Milbank, Porter Hedges to Lead Bankruptcy
A Pennsylvania-based glucose and diabetes monitoring device manufacturer listing liabilities of $1.7 billion filed for Chapter 11 bankruptcy protection Tuesday in the Southern District of Texas.