Justia Commercial Law Opinion Summaries

Articles Posted in Supreme Court of Texas

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The Supreme Court accepted two questions of Texas law certified to it from the United States Court of Appeals for the Fifth Circuit concerning the damages and attorney's fees available under the Texas Sales Representative Act, chapter 54 of the Business and Commerce Code, Tex. Bus. & Com. Code 54.001-.006. The Court answered (1) the time for determining the existence and amount of "unpaid commission due" under section 54.001(1) is the time of the jury or trial court determines the liability the defendant, whether at trial or through another dispositive trial-court process such as summary judgment; and (2) a plaintiff may recover attorney's fees and costs under section 54.004(2) even if the plaintiff does not receive treble damages if the fact-finder determines that the fees and costs were reasonably incurred under the circumstances. View "JCB, Inc. v. Horsburgh & Scott Co." on Justia Law

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The Supreme Court held that Plaintiff, rather than his Bank, must suffer the financial consequences of the complete draining of Plaintiff’s bank account by an identity theft through a series of fraudulent transactions. At issue was Tex. Bus. & Com. Code 4.406(c), which limits the liability of a bank when the customer fails to comply with his or her duties to examine the statement of account and notify the bank of any unauthorized payment. Rather than monitor his account as contemplated by the statute, for more than a year Plaintiff failed to look for missing bank statements or inquire about the status of his account. The court of appeals rendered judgment for Plaintiff, holding that the Bank neither sent the statements to Plaintiff nor made them available to him, and therefore, his statutory duties to examine the statements and report unauthorized transactions never arose. The Supreme Court reversed, holding (1) the Bank made the statements “available” to Plaintiff for purposes of section 4.406; and (2) under the circumstances, section 4.406 precluded Plaintiff’s attempt to hold the Bank liable for the losses. View "Compass Bank v. Calleja-Ahedo" on Justia Law

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A trial court’s authority to distinguish between genuine and non-genuine fact issues includes the authority to apply the so-called “sham affidavit rule” when confronted with evidence that appears to be a sham designed to avoid summary judgment. Under the sham affidavit rule, if a party submits an affidavit that conflicts with the affiant’s prior sworn testimony and does not provide a sufficient explanation for the conflict, a trial court may disregard the affidavit when deciding whether the party has raised a genuine fact issue to avoid summary judgment. In this commercial dispute, the trial court struck an affidavit as a sham under the rule and granted partial summary judgment. A divided panel of the court of appeals affirmed and adopted the sham affidavit doctrine, which had not previously been explicitly recognized by the court of appeals. The Supreme Court affirmed the court of appeals’ decision as to the partial summary judgment grant, as the trial court properly concluded that the affidavit in question did not raise a genuine fact issue sufficient to survive summary judgment. The Court then remanded to the court of appeals to consider whether any claims remained unresolved. View "Lujan v. Navistar, Inc." on Justia Law

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Centerpoint Builders was hired as the general contractor to build an apartment complex. Centerpoint contracted with a subcontractor to install wooden roof trusses. Centerpoint purchased the trusses directly from Trussway, Ltd., the truss manufacturer. Merced Fernandez, an independent contractor, was rendered paraplegic when a truss broke while he was walking across it. Fernandez sued several entities, including Centerpoint and Trussway, and eventually settled. Centerpoint filed a cross-action against Trussway alleging that Trussway was required to indemnify Centerpoint for any loss arising from Fernandez’s suit. Trussway filed its own indemnity cross claim against Centerpoint. Centerpoint sought partial summary judgment, arguing that it was a seller under Tex. Civil Prac. & Rem. Code Ann. chapter 82 and was thus entitled to indemnity as a matter of law. Chapter 82 entitles the “seller” of a defective product to indemnity from the product manufacturer for certain losses. The trial court concluded that Centerpoint was a seller under chapter 82. The court of appeals reversed, concluding that Centerpoint did not fit the statutory definition of a seller and was therefore not eligible to seek indemnity. The court of appeals affirmed. The Supreme Court affirmed, holding that Centerpoint, as the general contractor, was not a “seller” entitled to seek indemnity under chapter 82. View "Centerpoint Builders GP, LLC v. Trussway, Ltd." on Justia Law