SCOTUS Snapshot: The Fifth Circuit Is 3-7 This Term
The U.S. Supreme Court heard arguments in 10 cases during the 2023-24 term that came from the U.S. Court of Appeals for the Fifth Circuit. It reversed the Fifth Circuit seven times.
Litigation Roundup: Trafigura Pays $55M, Settles Trading Fraud Claims; New Rules at the Fifth Circuit
In this edition of Litigation Roundup, we detail two new changes in rules governing attorneys who practice before the U.S. Court of Appeals for the Fifth Circuit, a jury in Harris County issues a $17 million verdict in a seven-year-old lawsuit and Whataburger goes to court to defend its trademark.
Court Rejects Billion-Dollar Legal Challenge to PUC Rates During Winter Storm Uri
Legal efforts by some of the largest energy companies in Texas to force the Texas Public Utility Commission to reprice the record-high electricity rates it charged during Winter Storm Uri three years ago were flatly rejected Friday by a unanimous Texas Supreme Court. The state’s highest court ruled that the PUC did not exceed its legal authority in February 2021 when it ignored market competition to set electric rates at $9,000 per megawatt-hour because the Texas grid faced an emergency crisis and possible collapse “that would have plunged the state into darkness for weeks, maybe months.”
The unanimous 30-page opinion reverses the decision of the Austin court of appeals in 2023 that the PUC overstepped its legal authority by ignoring integrated market competitive procedures and instead manually set electric rates during the four days of Winter Storm Uri.
SCOTX Says No Ambiguity in Contract Underpinning UT’s $51M Royalty Dispute
Chief Justice Nathan Hecht, writing for the unanimous court, explained that when the royalty provisions are read “together, not separately” and are considered in the context of the parties’ agreement, they are not ambiguous. But the ruling that sided with the University of Texas System Board of Regents did not give the university an outright win.
Scott A. Brister to Lead New 15th Court of Appeals
Two others with intermediate appellate court experience were named to the appellate court by Gov. Abbott, who also announced appointments to the new Austin business court division. The governor still must name judges for business court divisions in Dallas, Fort Worth, Houston and San Antonio. The Texas Lawbook's Janet Elliott has the details.
Business Court Applicants Pick Favorite Judges, Disliked Decisions
Answers to the governor’s questionnaire shed some light on the judicial philosophies of some 30 who have applied for the coming business trial and appellate courts. Generally, they like conservatives like Scalia and Thomas and shun SCOTUS decisions on Obamacare and the Chevron deference.
Editor’s note: This article was written in advance of the governor’s announcements Wednesday.
SCOTUS Sides with Insurer in Asbestos-related Chapter 11 Case
On Thursday, Justice Sonya Sotomayor delivered the 8-0 opinion of the court that held Truck Insurance Exchange should have been allowed to voice its concerns about the terms of a proposed $50 million settlement of thousands of asbestos-related lawsuits because the insurer is a “party in interest” in the dispute. Gibson Dunn's Allyson Ho argued the case and spoke to The Lawbook about its implications.
Texas Supreme Court Abates Meta Lawsuit in Light of Tentative Settlement
A little more than a week before trial was slated to begin, a settlement has apparently been reached in a case where Texas alleged Meta Platforms, formerly known as Facebook, had unlawfully used the biometric data of Texans without their consent and for commercial use.
Constitutional Challenge to New Fifteenth Court of Appeals Hits SCOTX
In a petition for a writ of injunction filed with the state’s high court Wednesday afternoon, Dallas County alleges numerous ways the structure of the new court violates the state’s constitution. In June, the Legislature passed and the governor signed into law S.B. 1045, which created the Fifteenth Court of Appeals and granted it exclusive, statewide jurisdiction over certain cases involving the state or state officials. The jurisdiction of the state’s other 14 intermediate appellate courts is tethered to the district and county courts within its geographic region, which Dallas County argues is constitutionally required.
Texas Supreme Court Reverses $12M Verdict Due to Racially Biased Closing Argument
The Texas Supreme Court reversed a $12 million jury verdict on Friday because the plaintiffs’ lawyer during closing arguments injected the idea of racial and gender bias as a possible reason that the defendants wanted reduced amounts awarded to the plaintiffs, one of whom is an African American woman. The justices said the plaintiffs’ lawyer injected “inflammatory argument that was uninvited and unprovoked” in his final comments to the jury that essentially accused opposing counsel of race and gender discrimination when no evidence of either existed in the trial record.