Law Commons^™

If You Don't Care, Who Will?, Chad J. Pomeroy

Faculty Articles

As a property law professor, I have lately found myself thinking a lot about privacy rights. Initially, the two topics (property and privacy) perhaps do not seem closely related, but I think they are—or, at least, I think the tie between the two is becoming much more pronounced and important, as modern life becomes ever more techno-centric. specifically, I think that privacy rights are, at this point, essentially an outgrowth of property rights. That is, one's right to privacy is dependent on what we traditionally view as one's property rights. At least, I think this is the current state of …

Enhancing Cybersecurity In The Private Sector By Means Of Civil Liability Lawsuits - The Connie Francis Effect, Jeffrey F. Addicott

Faculty Articles

The purpose of this article is to explore the threats posed by cybersecurity breaches, outline the steps taken by the government to address those threats in the private sector economy, and call attention to the ultimate solution, which will most certainly spur private businesses to create a more secure cyber environment for the American people-a Connie Francis-styled cyber civil action lawsuit.

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

The Fifth Circuit’s determination of a passive investor’s equity interest in a limited liability company as “securities” brings this class of investors under the protection of the Texas Securities Act (“TSA”). The TSA recognizes vicarious liability theories of aiding and abetting liability and control person liability, which hold secondary parties accountable for their actions. During the Survey period, several cases found secondary parties with positions of control or who met the elements of common law fraud culpable. In Fernea v. Merrill Lynch Pierce Fenner & Smith, Inc., the court found that a business could be liable for an employee’s actions …

Restitution In Texas: Civil Liability For Unjust Enrichment, David A. Dittfurth

Faculty Articles

The Texas Supreme Court must clarify the law of restitution. The law of restitution regulates a major area of litigation in Texas and suffers from a significant degree of confusion. The Texas Supreme Court has adopted the modern view of restitution, but its rulings lack the detailed guidance needed by lower courts. The Texas Supreme Court should establish an independent and generally applicable cause of action for unjust enrichment, describe clearly the elements of that cause of action, and lend its authority to the modern terms that describe the law of restitution.

The Texas Supreme Court’s rulings on restitution describe …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

Securities law opinions during this period fall into two categories. The first deals with incompetent lawyers. In Miller, a state court reinstated a cease and desist order against an issuer whose lawyer failed to object to a witness's testimony when a co-defendant's counsel did. In In re Next Financial Group, the Texas Supreme Court granted mandamus and ordered arbitration for the termination of a broker when the arbitration agreement permitted only an exception for statutory discrimination, not a common law exception to the employment-at-will doctrine.

The second group of cases involve Fifth Circuit opinions discussing securities fraud actions under the …

The Court Of Appeals For The Fifth Circuit: A Review Of 2007-2008 Insurance Decisions, Willy E. Rice

Faculty Articles

The Fifth Circuit Court of Appeals decided a considerable number of insurance-related controversies between June 2007 and May 2008. Arguably, the most important, comprehensive decisions are discussed-nineteen insurance cases that originate in just five federal district courts. Generally, the Fifth Circuit decided familiar questions of law and fact. More specifically, the following types of procedural and substantive conflicts appear in the nineteen insurance decisions: (1) one case involving the constitutionality of a Texas insurance statute; (2) two federal preemption and removal controversies involving the Employee Retirement Income Security Act (“ERISA”); (3) two disagreements requiring the court of appeals to make …

The Court Of Appeals For The Fifth Circuit: A Legal Analysis And Statistical Review Of 2005-2006 Insurance Decisions, Willy E. Rice

Faculty Articles

he Fifth Circuit Court of Appeals decided and published twenty-four insurance-related appeals between June 2005 and May 2006 from cases originating in seven federal district courts. Like petitioners in prior years, the overwhelming majority of the 2005-2006 appellants petitioned the court of appeals to reverse or vacate district courts' adverse summary judgments as well as the lower courts' allegedly questionable interpretations of various insurance contracts. Most of the controversies involved familiar procedural and substantive questions of law, but the Fifth Circuit also decided many questions of fact. Furthermore, several preemption questions and disputes over subject matter jurisdiction appeared among the …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

With respect to easing registration requirements, the State Securities Board (“Board”) had the opportunity to lead both state and federal securities regulatory bodies through rule changes for finders--those who assist issuers in finding purchasers. The Board also issued no-action letters for nonregistration of securities issued in connection with various reorganizations involving a Massachusetts business trust, a demutualization of an insurance company, and an exchange of private shares for public American Depository Receipts.

Other than considering the availability of the in pari delicto defense for litigation-funding agreements, the courts generally avoided the interesting issues. Such issues include whether a seller’s fraud …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

The definitions, especially those relating to the issues of what constitutes a security, who may recover, and the territorial reach, determine the scope of the securities acts. The Fifth Circuit issued one decision concerning standing to sue under section 11 of the Securities Act of 1933.

The State Securities Board amended its form for public information charges and billing detail to reflect current fees for public information established by the Texas Building and Procedures Commission. The Board adopted new rules reorganizing the exemption for sales to financial institutions and certain institutional investors under the Texas Securities Act (“TSA”) and reconsidered …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

The definition of securities is constantly evolving, and court cases help define this concept. Other cases help illuminate standing to sue. Two courts considered the application of the Texas Securities Acts in multi-state situations.

The State Securities Board amended its hearings rules to give the Director of Inspections and Compliance Division authorization to sign a notice of hearing in administrative cases. The Board initiated numerous enforcement actions against issuers who did not register their securities. It also issued a number of no-action letters dealing with issuers. In addition, the Board amended its rules for registration of dealers several times during …

Insurance Decisions - A Survey And Empirical Analysis, Willy E. Rice

Faculty Articles

During the period from June 2002 to July 2003, the Court of Appeals for the Fifth Circuit decided twenty-two appeals originating in eight federal district courts. Certainly, the greater majority of the insurance appeals involved recurring substantive and procedural conflicts. Major disagreements about the interpretation and enforcement of insurance contracts were before the court. Also, federal preemption questions and conflicts over subject-matter jurisdiction appeared in several cases. Furthermore, the Fifth Circuit addressed one case of first impression, and on remand from the Supreme Court, the appellate court modified and reinstated portions of a vacated opinion. For the most part, the …

Texas Annual Survey: Securities Regulation, George Lee Flint Jr

Faculty Articles

The ease of becoming judgment proof in Texas, with liberal exemptions from execution of judgment, makes secondary liability very important. Texas statutes provide for four such liability theories: aiding and abetting, control person liability, third party actual awareness liability, and third party beneficiary liability. In addition to these four liability theories, federal law adds primary liability for some secondary parties.

The 78th Texas Legislature made two changes geared toward reducing the cost to the State of Texas in operating the State Securities Board. The Board also made several rule changes to increase revenues and to make other non-substantive changes. Moreover, …

The Princess And The Pea: The Assurance Of Voluntary Compliance Between The Texas Attorney General And Aetna's Texas Hmos And Its Impact On Financial Risk Shifting By Managed Care, Brant S. Mittler, Andre Hampton

Faculty Articles

The Texas Attorney General attempts to regulate managed care organizations and their shifting of financial risk by utilizing Assurance Voluntary Compliance to make the costs associated with the provisions of health insurance more transparent. A primary technique used to shift financial risk to providers of healthcare services is through the use of downstream entities which are commonly provider-sponsored organizations. It is the relationship between the downstream entity and the individual physicians that ultimately affects patient care, the doctor-patient relationship, and the quality of care. The regulatory community throughout the United States has made the regulation of downstream entities its number …

“Absolute And Perfect Candor” To Clients, Vincent R. Johnson

Faculty Articles

The fiduciary duty owed to clients by attorneys is defined by the reasonable-care standard of negligence as opposed to the all-encompassing “absolute and perfect candor” rhetoric frequently used to describe the duty owed. Words have meanings and, though the use of “absolute and perfect candor” serves a beneficial purpose, reminding attorneys of the special duty owed to their clients, the fiduciary duty owed to clients is not so all encompassing and impractical.

Modern case law fails to establish that a broadly applicable duty of “absolute and perfect” candor applies to the attorney-client relationship, except in a limited number of situations. …

Dueling Democracies: Protecting Labor Representation Elections From Governmental Interference, John W. Teeter Jr

Faculty Articles

Public officials should be free to support or oppose unionization, but we must prevent their electioneering from undermining the industrial democracy of labor representative elections. Such elections are designed to be freely held; workers decide whether they wish to be represented by a union for purposes of collective bargaining. This choice of whether to unionize is for the workers alone without any governmental favoritism or coercion.

Government officials however have repeatedly jeopardized laboratory conditions by campaigning in labor representation elections. The Board should reassure workers of their right to cast uncoerced ballots, clarify that the political officials are not declaring …

Distinguishing The Concept Of Strict Liability For Ultra-Hazardous Activities From Strict Products Liability Under Section 402a Of The Restatement (Second) Of Torts: Two Parallel Lines Of Reasoning That Should Never Meet, Charles E. Cantú

Faculty Articles

Strict liability for ultra-hazardous activities is entirely different from strict products liability. Since strict liability has been applied to so-called dangerous or ultra-hazardous activities, the application has been limited to instances where the defendant has, for his own purpose, created an abnormal risk of harm to those surrounding him, and therefore should pay for any resulting injury. Section 520 of the Restatement (Second) of Torts explains how one weighs the risk of harm emanating from ultra-hazardous activities against the appropriateness to its surroundings. This is not, however, how one determines the applicability of strict liability in the area of defective …

Opening The Door To Business Methods: State Street Bank & Trust Co. V. Signature Financial Group, Inc. (Note), Colin P. Marks

Faculty Articles

Business method patents require further litigation to answer many lingering questions. The decision of the United States Court of Appeals for the Federal Circuit in State Street Bank & Trust Co. v. Signature Financial Group, Inc. eliminated the "business method" exception. The business method exception used a skeptical approach asking "why should a patent be granted." The skepticism inherent in this approach may explain why the doctrine was recognized for so many years.

Since the time of Hotel Security Checking Co. v. Lorraine Co., advances in the field of science and the advent of computers have forced courts to constantly …

The Recycling, Dismantling, And Destruction Of Goods As A Foreseeable Use Under Section 402a Of The Restatement (Second) Of Torts, Charles E. Cantú

Faculty Articles

The past thirty years have witnessed the significant expansion and transformation of products liability law. While much of the initial confusion regarding the application and interpretation of Section 402A of the Restatement (Second) of Torts has been settled, some problems remain.

One of these problem areas involves the allocation of liability for injuries resulting from the destruction, dismantling, and recycling of products whose useful lives have come to an end. In this situation, the law has evolved to provide a rule that imposes no liability upon the manufacturer. The courts have reasoned that individuals engaged in reclamation procedures are not …

Evidence, David A. Schlueter

Faculty Articles

From June 1987 to May 1988, the Fifth Circuit continued its reputation for careful and prudent analysis of difficult evidentiary issues.

In United States v. Torres-Flores, the court adopted a three part test for determining the admission of a mugshot photograph into evidence from the First and Second Circuits. First, the government must have a demonstrable need to introduce the photographs; second, the photographs themselves, if shown to the jury, must not imply that the defendant has a prior criminal record; and third, the manner of introduction at trial must be such that it does not draw particular attention to …

Reflections On Section 402a Of The Restatement (Second) Of Torts: A Mirror Crack’D, Charles E. Cantú

Faculty Articles

Section 402A of the Restatement (Second) of Torts forever changed the means by which an individual would be held liable for placing defective products into the stream of commerce. Strict liability, which had previously been restricted to cases involving dangerous activities and wild animals, became a new cause of action in almost all product cases. As a result, this section of the Restatement has been a catalyst to a multitude of litigation. More causes of action have been brought alleging strict liability for injuries caused by a defective product than in any other area of tort law.

Now that almost …

Charter Air Travel: Paper Airplanes In A Dogfight (Comment), Gerald S. Reamey

Faculty Articles

Air transportation has traditionally been considered the most expensive form of travel. In that price context, the charter is an anomaly. Supplemental air carriers have built multi-million dollar businesses exclusively from the charter trade, and millions of passengers have flown by charter.

An anomaly, however, is inherently suspect and becomes proportionally more suspect as it infringes upon the status quo. Resolution of questions concerning the viability of the charter concept lies in a full understanding of the different charter forms available, the possible alternatives to these forms, the advantages and disadvantages of each, and the best way to accomplish the …