The McTexLaw Email Alert for May, 2004

In this issue, we have some truth that is far and away stranger than any fiction I could imagine, along with two critical Texas Supreme Court cases that help clarify two areas of the law. Did you just read “Texas Supreme Court” and “help” in the same sentence? Yep, so you know this issue is special.

New on The McTexLaw Business Owner’s Resource Center:

What Does “Interference with Prospective Contractual or Business Relations” Mean?

Turns out, Texas has never had a really good definition of what “bad acts” are considered tortious interference with prospective contractual or business relations. But now we do, and from the Texas Supremes, no less. Leaving something undefined is better for the plaintiffs; it’s easier to get the case to a jury and then just leave it up to them, serving up the case with as much emotional umph as possible. But no more. Now, a business seeking to prove wrongful interference must prove that the alleged improper conduct was “independently tortious or unlawful.” Click the headline to read how the Texas Supremes got there, and what in the world “independently tortious and unlawful” means. Wal-Mart Stores, Inc., v. Sturges, 52 S.W.3d 711 (Tex. 2001).

New on The McTexLaw Commercial Real Estate Resource Center:

Texas Recognizes “Pass-Through Claims”

In the construction industry, you have Owners, General Contractors, and Subcontractors. The big contract is between the Owner and the GC, with separate contracts between the GC and the Subs. The question is, when can a Sub and an Owner go at each other for breach of contract? Typically, the answer is “they can’t” because there is no contract directly between the two of them. But the law has now changed. Substantially. Formally. The Texas Supremes have decided that Texas law recognizes “pass-through claims.” Click the headline to read about how Texas law defines them, and what they mean to your business. Interstate Contracting Corp. v. City of Dallas, Texas, Case No. 03-0152, Texas Supreme Court, decided April 16, 2004.

WOMEN’S LIB GONE VERY, VERY WRONG

From our “truth is stranger than fiction” files comes the story of Caryn Schenewerk. Who is that, you may ask? Turns out she’s running for President–of the U. S. Yep, trying to knock off George W. She’s named her political action committee “Running in Heels” and is selling panties to raise money. Yes, you read it right the first time. Her website is www.womenagainstbush.com and contributors at the $25 level get a pair of panties with a logo and this phrase: “Kiss Bush Goodbye”. I’m sure there’s a crude joke here about location, location, location, but we would never stoop to that level. And depending on your personal history, the fact that Schenewerk is a Longhorn (yes, she’s a University of Texas grad) either explains this whole situation, or makes it that much more bewildering.

SUCCESS REDEFINED: THE TRCC

As you may remember, last session the Texas Legislature created a new bureaucracy to deal with all the Texas residential construction gripes. Beginning January 1 of this year, residential construction companies could register with the Texas Residential Construction Commission. They were required to be registered no later than March 1, but the deadline was extended to March 31.

The TRCC was expecting about 3,750 registrations. Turns out more they have received more than 11,500 builder registrations to date, and those builders have registered more than 24,000 homes. How’s that for success? Could there be a reason for this extraordinary progress? Oh yes. This new law will most likely benefit the builders at the homeowners’ expense, at least in the short term But look for owners and their crafty lawyers to find loopholes from time to time. If you haven’t registered with the TRCC, or have any questions about this new law, please do not hesitate to contact us.

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