Case Updates



Legal Update: Proposed Department of Labor Rule

By |2020-10-08T10:32:31-05:00October 8, 2020|

The Department of Labor recently issued a proposed rule to determine whether workers are considered employees or independent contractors.  If adopted, the new five-factor test will implement an updated standard by which companies must classify workers as either employees or independent contractors for the purpose of workers’ compensation and labor laws.

Legal Update: Yor-Wic Construction Co., Inc. v. Engineering Design Technologies, Inc., et al. (July 2020)

By |2020-09-23T15:47:42-05:00September 21, 2020|

The U.S. District Court for the Western District of Louisiana recently issued a ruling that clarifies the liability of a surety when a claimant gives late notice of a loss and also made clear the duty of a commercial general liability (“CGL”) carrier to indemnify its insured for an economic-loss claim. In Yor-Wic Construction Co., Inc. v. Engineering Design Technologies, Inc., No. 17-0224, 2020 WL 3964775 (July 13, 2020), Yor-Wic, a subcontractor, was denied the opportunity for a subcontract and subsequently brought a lawsuit against the surety and the general contractor.

Can Liquidated Damages Be Withheld on a Public Project? It May Depend on the Project’s Location

By |2020-07-23T11:35:17-05:00July 23, 2020|

In the 2020 Regular Session, the Louisiana Legislature attempted to resolve an apparent circuit split among the First and Fourth Circuit Courts of Appeal by codifying the requirements for a public entity to withhold liquidated damages (LDs) on public projects.  House Bill 758 was originally intended to allow LDs to be withheld on all public contracts.  However, after much debate, the bill was limited to “flood protection” and “integrated coastal protection” projects.

Legal Update: Golden Spread Electric Cooperative, Inc. v. Emerson Process Management Power & Water Solutions, Inc.

By |2020-05-26T13:03:43-05:00May 26, 2020|

In a recent U.S. Fifth Circuit case applying Texas law, the court cited the economic-loss rule to bar recovery for damage to a steam turbine generator caused by a faulty software upgrade in Golden Spread Electric Cooperative, Inc. v. Emerson Process Management Power & Water Solutions, Inc., 954 F.3d 804 (5th Cir. 2020).  Ruling on an unsettled question of law in Texas, the Fifth Circuit was required to make an “Erie guess” as to whether the Texas Supreme Court would apply the economic-loss rule to bar tort recovery for a faulty replacement part that damaged the original product.  

Legal Update: Recent Insurance Decisions

By |2020-04-28T13:38:29-05:00April 17, 2020|

In three recent insurance decisions, Louisiana courts again reminded potential claimants of important insurance principles. These decisions addressed (1) claims that may arise out of contractual and delictual (tort) duties; (2) the manifestation trigger theory to determine policy coverage; and (3) the meaning and application of an “occurrence” for CGL coverage.

Proposed Legislation Due to COVID-19

By |2020-04-28T13:39:52-05:00April 8, 2020|

The Louisiana Legislature has joined a number of other states—including New York, New Jersey, Massachusetts, and Ohio—in introducing legislation that would require business interruption insurance to retroactively cover business losses attributable to the COVID-19 pandemic. 

Case Update: Leblanc Marine, LLC v. State of Louisiana (La. Oct. 2019)

By |2019-10-31T10:26:42-05:00October 30, 2019|

The Louisiana Supreme Court recently provided clarity in a muddled area of the Public Bid Law jurisprudence, holding that public bidding requirements that are inconsistent or in conflict with the Public Bid Law are invalid.  Public entities have long advertised bidding requirements beyond the Public Bid Law requirements when they seek bids for public work projects. Since the Louisiana Supreme Court’s 2006 Hamp’s decision, it was clear public entities could not waive any advertised bidding requirement, even if considered insignificant, because the Public Bid Law expressly precludes waiving advertised bidding requirements.  Thus, a bidder who failed to comply with an advertised bidding requirement could not be awarded a contract.  

Case Update: Barbara Technologies Corp. v. State Farm Lloyds and Ortiz v. State Farm Lloyds (Tex. 2019)

By |2019-10-31T10:27:23-05:00October 7, 2019|

The Supreme Court of Texas dealt a heavy blow to insurers with two opinions that will subject insurance companies to steep damages for violating Texas’ Prompt Pay statute (TPPCA) when the insurer invokes an appraisal clause and does not pay within the 60-day window required by statute.  Additional damages including up to 18% annual interest on past-due amounts pursuant are recoverable by the insured when the insurance company pays in accordance with an appraisal but is found liable under the policy. In Barbara Technologies Corp. v. State Farm Lloyds, the Texas Supreme Court reversed several years of precedent, while Ortiz v. State Farm Lloyds illustrates how the rule is applied.

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