AM Wins Important Texas Supreme Court Ruling

The Texas Supreme Court recently ruled unanimously in favor of Andrews Myers client Pepper-Lawson Horizon International Group and against Texas Southern University. The Court’s opinion can be found here.

This ruling has a profound impact on all contractors doing business with the State of Texas.  Specifically, state government entities will no longer be able to unreasonably stonewall contractor claimants. The often-used defense practice of challenging the Court’s jurisdiction to stall the case has now been properly clarified and limited.  As of today,  if contractors can properly state a claim under Chapter 114 (the applicable waiver of sovereign immunity statute), then the case can proceed. Further, contractors are no longer required to disprove all of the State’s defenses in order to proceed with their case.

Pepper-Lawson Horizon International Group sued Texas Southern University in 2018, asserting that the University had breached the parties’ contract on a student housing project by failing to pay and by denying its request for equitable time extensions. The University denied the allegations, arguing that “sovereign immunity has not been waived for [the Contractor’s] claims.” It also stated that Pepper-Lawson Horizon International Group had failed to point to a specific contractual provision that it had breached and that the Prompt Pay Act does not expressly waive sovereign immunity. The trial court denied the University’s jurisdictional defenses and set the matter for trial. On appeal, however, the Court of Appeals of Texas, First District, Houston, reversed. The appeals court rendered judgment dismissing the case for lack of subject matter jurisdiction.  Andrews Myers shareholders Ben Westcott and Tim Ross appealed on behalf of longtime client Pepper-Lawson Horizon International Group, seeking review from the Texas Supreme Court, which was confirmed.

Industry support came from the Associated Builders and Contractors of Texas, Associated General Contractors – Texas Building Branch, American Subcontractors Association, and the Houston Contractors Association, who provided friend-of-the-court amicus brief support.

AM Defends TX Bus Companies against $708M NY Injunction Bid

Court Rules Against NYC Mayor’s Bid to Block Migrant Bus Arrivals from Texas

In a significant legal victory, Andrews Myers attorneys Mark Levine, Elliot Kudisch, and Garrett Gray defeated the City of New York Commissioner of Social Services request for a $708 million bond against 16 bus companies.

Justice Mary V. Rosado agreed with the Andrews Myers legal team and found the Commissioner’s request for injunctive relief, including the merits of the Commissioner’s case were “dubious at best given [a] myriad of constitutional concerns.”  “We are pleased the Court agreed with our position and recognized that the Commissioner sought to enforce an archaic and unconstitutional law that should have been eradicated decades ago when the U.S. Supreme Court ruled a near identical statute void,” said Mark J.  Levine, lead attorney on the case.

Elliot Kudisch added, “We’re proud to have stood up for these hardworking business owners. This case underscores the importance of robust legal representation for small businesses facing challenges from state or corporate behemoths with unlimited war chests.”

Douglas Stevinson, Pat Russo, and Dennis Amore of Windel Marx Lane & Mittendorf, LLP provided invaluable local counsel services for the Andrews Myers team throughout litigation.

The successful defense mounted by Andrews Myers, P.C. reaffirms the firm’s reputation as a staunch advocate for businesses of all sizes, particularly in complex litigation involving multiple states and intricate regulatory frameworks.

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