Texas Construction Law Updates


Court narrowly construes law limiting contract-notice requirements

Nick Brooks - Wednesday, May 31, 2017

Under the Texas Civil Practice & Remedies Code, “a contract stipulation that requires a claimant to give notice of a claim for damages as a condition precedent to the right to sue on the contract is not valid unless the stipulation is reasonable. A stipulation that requires notification within less than 90 days is void.” Tex. Civ. Prac. & Rem. Code § 16.071. In a recent case, an owner sought to enforce a provision in a constru ... read more


Contractor’s officer successfully defends against claims for misapplication of trust funds

Jason Cagle - Wednesday, May 17, 2017

The U.S. Court of Appeals for the Fifth Circuit recently analyzed a defense against a subcontractor’s claims asserted under the Texas Construction Trust Fund Act. Under the Act, contractors can be held liable as trustees for misapplication of payments received for the benefit of downstream contractors. Tex. Prop. Code § 162.031 (a). Owners, officers, and agents of contractors who have control or direction of trust funds can also be held indiv ... read more


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