Texas Construction Law Updates

Liquidated-damage provision enforced by Houston Court of Appeals

Jason Cagle - Wednesday, April 18, 2018

The First District Court of Appeals in Houston recently enforced a liquidated-damage provision. The opinion analyzes whether the liquidated damages constituted an unenforceable “penalty” under Texas law. A liquidated-damage provision permits a party enforcing a contract to recover damages based on an amount or formula agreed upon in advance. However, the breaching party may invalidate the liquidated-damage provision if it demonstrates ... read more

Texas Supreme Court refuses to look beyond the contract language to determine a party’s obligations

Jason Cagle - Tuesday, April 03, 2018

The Texas Supreme Court recently declined to look beyond an agreement’s clear language to trigger one party’s obligations. This was despite the other party’s insistence that pre-contract negotiations proved that the obligations had to be triggered. As a result, the other party did not get the performance that it thought was included in its bargain. In URI, Inc. v. Kleberg County, the parties entered into an agreement in which URI could ... read more

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