Monday, January 4, 2021

But is it jurisdictional?

Originally published by David Coale.

The question in State of Texas v. Mesquite Creek Devel., Inc.. was whether the trial court erred in dismissing a condemnation case based on the state’s failure to timely disclose an appraisal. The Fifth Court observed: “The supreme court utilizes four principles to determine whether the legislature clearly intended a statute to set jurisdictional requirements: “(1) the plain meaning of the statute, (2) whether the statute contains specific consequences for noncompliance, (3) the purpose of the statute, and (4) the consequences that would result from each construction.”  Applying those factors, the Court found that this issue was not jurisdictional. No. 05-19-00028-CV (Dec. 31, 2020).

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Fourth Circuit Speaks: To Be “Qualified” Under the ADA, Disabled Employee Must Comply with Valid Safety Requirements

Originally published by Seyfarth Shaw LLP.

By John P. Phillips and Linda Schoonmaker

Seyfarth Synopsis:  Often an employer’s valid safety requirements for a position can be at odds with a disabled employee’s request for a reasonable accommodation. A recent decision from the Fourth Circuit Court of Appeals reaffirms employers’ right to require compliance with valid safety requirements. And it serves as a helpful reminder that employers should ensure that job descriptions and safety requirements are routinely audited, to ensure they are up-to-date, accurate, and enforceable.

When an employee has a disability that preludes her from performing a portion of her job duties, employers have an obligation under the Americans with Disabilities Act to engage with the employee and find a reasonable accommodation. But sometimes the employee’s disability prevents the employee from performing her job duties in a safe manner and in accordance with the company’s safety policies. The Fourth Circuit Court of Appeals recently analyzed this fact pattern, and it held that because the employee was unable to comply with the valid safety requirements of her position, she was not protected by the requirements of the ADA.

This decision is a welcome ruling for employers, and it also serves as a helpful reminder for employers to ensure that their safety requirements and essential job functions are up-to-date, accurate, and defensible.

Background

In Holmes v. General Dynamics Mission Systems, Inc., the plaintiff brought an ADA action against her former employer. The plaintiff worked as a shelter fabricator for a number of years. Throughout the entirety of her employment, the job required the use of heavy equipment and machinery. In 2003, General Dynamics began requiring shelter fabricators to wear steel-toed shoes to protect against accidents. However, the plaintiff suffered from a disability that prevented her from wearing steel-toed shoes. Accordingly, she presented a doctor’s note explaining her condition, and for a number of years General Dynamics allowed her to wear tennis shoes instead.

This changed in July 2013 when General Dynamics received a negative audit finding after an inspector observed a different employee in the production area without steel-toed shoes. In addition, another employee had been injured a few years earlier while not wearing steel-toed shoes. Accordingly, the company decided that it needed to enforce the steel-toed shoe policy, and it instructed all supervisors to do so.

This decision presented a problem for the plaintiff. She provided a doctor’s note stating that her disability prevented her from safely wearing steel-toes shoes. The company placed her a on a leave of absence while it worked to find a reasonable accommodation. General Dynamics explored different shoe options for the plaintiff (which she and her doctors rejected), re-reviewed the steel-toed shoe requirement, and looked for suitable alternative positions. When no accommodation was possible, the company terminated the plaintiff’s employment.

The plaintiff subsequently filed an ADA claim against General Dynamics. Following discovery, the district court granted summary judgment for General Dynamics and dismissed the plaintiff’s claims. The district court found that the plaintiff was not a “qualified individual” under the ADA because she could not comply with the company’s valid safety requirements.

Fourth Circuit’s Decision

On appeal, the Fourth Circuit affirmed the district court’s order. The Fourth Circuit explained that the ADA protects “qualified individuals” from discrimination on the basis of disability. Under the ADA, a qualified individual is one “who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds.”  And the Court held that the plaintiff was not a qualified individual because she was unable to comply with a valid safety requirement.

In doing so, the Fourth Circuit drew a distinction between whether the plaintiff could perform her essential job functions and whether the plaintiff could comply with a valid safety requirement. The Court recognized that in addition to essential job functions, it must also consider General Dynamic’s valid safety requirement when analyzing the plaintiff’s claims. The Court explained:

[T]he ADA simply does not mandate that a safety requirement be a part of the essential functions of a position for an employer to enforce it. Rather, as long as the requirement is valid, any employee who is categorically unable to comply—as [plaintiff] and her doctors have consistently maintained that she is—will “not be considered [a] ‘qualified’” individual for ADA purposes.

The Fourth Circuit found that there was no dispute as to the validity of the safety requirement that safety-sensitive positions wear steel-toed shoes and there was no dispute that the plaintiff could not comply with the safety requirement. Accordingly, the plaintiff was not a “qualified individual” under the ADA and was not entitled to any relief.

The Court also rejected the plaintiff’s argument that because she had performed the job for more than 10 years without wearing steel-toed shoes, she was a qualified individual under the ADA. The Court explained that just because she had performed the job without injury while not wearing steel-toed shoes did not mean that she had performed the job safely. And the Fourth Circuit rejected the argument that the plaintiff’s prior work established that an exemption from the steel-toed shoe requirement was a reasonable accommodation under the ADA. The Court explained:

Holding an exemption from an admittedly valid safety requirement represents a reasonable accommodation simply cannot be squared with an employer’s right to “require compliance” with such a requirement even when an employee cannot meet the requirement because of a disability. See EEOC Guidance at F., Example 45. If exemptions from valid safety policies were required as ADA accommodations, it is unclear under what circumstances an employer could ever enforce a valid safety policy.

Accordingly, the Fourth Circuit affirmed the grant of summary judgment in General Dynamic’s favor.

Takeaways

The Fourth Circuit’s decision is welcome news for employers, but it also illustrates the importance of ensuring that all safety policies and requirements are job-related, consistent with business necessity, and, above all, defensible. Although the validity of the steel-toed shoe requirement was not before the Fourth Circuit, in many cases the validity of a particular safety requirement will be at issue. Accordingly, it is important for employers to conduct period audits of the essential functions and safety requirements of positions, to ensure those requirements are accurate, up-to-date, and enforceable.

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Sunday, January 3, 2021

Apply now to join TOJI!

Originally published by Justine Carreon.

The Texas Opportunity & Justice Incubator is now accepting applications for its sixth cohort that will begin in spring 2021.

Applications are open through January 19. All licensed Texas attorneys or attorneys who have taken the September 2020 or October 2020 Texas bar exam can apply!

TOJI supports Texas lawyers who are building sustainable solo practices serving low- and modest-income Texans.

The program helps lawyers gain the skills and knowledge to run a business while also following a holistic philosophy that promotes health and wellness. Lawyers who join will receive 12 months of group training and personal coaching delivered virtually. Being in TOJI means being a part of a supportive, vibrant community of like-minded entrepreneurs.

Apply now.  For more information, visit the TOJI website, or follow TOJI on LinkedIn, Facebook, Twitter, and Instagram.

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Thursday, December 31, 2020

Wednesday, December 30, 2020

Judge Dismisses Latest Claims in Tiger King Case Finding First Amendment Protection

Originally published by Peggy Keene.

Court Applies Rogers Test Against Tiger King Trademark Claims

On The Tiger King saga captivated audiences that binged the documentary following Oklahoma zookeeper and social media star, Joe Exotic, as he waged his war against rival Carole Baskin and the movement against keeping big cats captive.  But even after the audience explosion has waned, third party legal wrangling involving the show and Tiger King trademark rights continue.

The Tiger King Trademark Saga

In the latest chapter of litigation involving the Tiger King drama, a judge denied claims of trademark dilution and infringement.  In July 2020, Hollywood Weekly Magazine, LLC (“HWM”) and its founder, Prather Jackson, sued Netflix and affiliates claiming various counts of intellectual property infringement for the use of the phrase “Tiger King” in the Netflix documentary about Joe Exotic and Carole Baskin.  In particular, Plaintiffs specifically argued that they coined the phrase “The Tiger King” in 2013 and the use of such phrase as well as of the HWM magazine name and copyrighted materials within the Netflix documentary caused them harm.

The Rogers Test and First Amendment Rights

In the court ruling, the judge found against Plaintiffs, dismissing the claims against Defendants.  Specifically, the court held that both parties agreed that there was extensive use of the Tiger King trademark in the “Joe Exotic Tiger King” documentary series.  The court applied the Rogers test (Rogers v. Grimaldi, 875 F.2d 994 (2d Cir. 1989)) used for determining whether an expressive work runs afoul of the Lanham Act where “the public interest in avoiding consumer confusion outweighs the public interest in free expression.”  The use of another’s trademark in an expressive work will not violate the Lanham Act unless the use “has no artistic relevance to the underlying work whatsoever, or, if it has some artistic relevance, unless it explicitly misleads consumers as to the source or content of the work.”

The court reasoned that as there has been an explosion in sales of Tiger King merchandise and other related goods and services being used in connection with the mark, the use of the phrase in the artistic works meets the threshold of minimal relevance, a prong of the Rogers test.  Basically, the use of the mark had to only have some relevance to the documentary series to satisfy the artistic relevance prong – with a relevance of merely “above zero.”

Not Misleading if Mere Use

The court also dismissed Plaintiffs’ claims of explicitly misleading/sponsorship.  Plaintiffs argued that the use of the marks in the documentary were misleading to consumers and making the public believe Plaintiffs were somehow sponsoring the documentary work. The court held that Plaintiffs were unable to show anything to demonstrate an explicit misrepresentation or misleading claim by Netflix.  As such, the court held that the statements at issue amounted to “mere use.”

Key Takeaways Regarding the Latest Tiger King IP Infringement Case

The HWM and Jackson claims against Netflix for intellectual property infringement from use of “Tiger King” and other marks and copyrights were not successful due to:

  • dismissal of trademark dilution and infringement claims;

  • application of the Rogers test; and

  • a finding the documentary use of the Tiger King mark is protected by the First Amendment.

Related Story: Even the Tiger King Has to Answer to the Law

For more information on Trademark Litigation, see our Intellectual Property Litigation Services and Industry Focused Legal Solutions pages.

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Avoiding a Will Contest

Originally published by Lesley Hempfling.

Even the most harmonious families are susceptible to arguments over the contents of the Will when a loved one dies.  While sometimes there is no way around

The post Avoiding a Will Contest appeared first on The Legacy Editor – Lesley Hempfling.

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Texas Supreme Court Deems Continuous Development Clause Ambiguous

Originally published by Charles Sartain.

Co-author Skyler Stuckey

In Endeavor Energy Resources, L.P. v. Energen Resources Corp. et al. the Supreme Court of Texas construed a continuous development clause in an oil and gas lease covering 11,300 acres in Howard County. After the primary term, lessee Endeavor could retain acreage by drilling a new well every 150 days. The clause gave Endeavor “ … the right to accumulate unused days in any 150-day term during the continuous development program in order to extend the next allowed 150-day term between the completion of one well and the driling of a subsequent well.

After the primary term, Endeavor drilled 12 wells that extended the lease. Endeavor began drilling a 13th well 320 days after completing the preceding well. In the ensuing period Energen top-leased the supposedly non-retained parcels. Litigation ensued.

The dispute focused on how to calculate the number of “unused days”. Endeavor argued that it could carry forward unused days across multiple 150-day terms.  Energen argued that unused days in any given 150-day term could be carried forward only once, to the next term.

The lower courts sided with Energen. The Supreme Court reversed, finding that both parties’ reading of the provision was reasonable, rendering it ambiguous. The parties agreed that the accumulation provision was a special limitation, and the Court analyzed it accordingly. When all means of interpreting a lease leave it equally susceptible to multiple reasonable readings, it will be resolved against the imposition of a special limitation.  Thus, the Court rendered judgment for Endeavor on title to the undrilled parcels.

Analysis by the Court

Energen argued that Endeavor was required to begin drilling within 186 days after completion of its 12th well (150 days + 36 unused days from the prior term).

Endeavor argued it had accumulated 377 days across multiple 150-day terms in which to drill its 13th well, because many earlier wells had been drilled ahead of schedule.

In discerning the meaning of the accumulation provision the Court noted several guiding principles. See the attached longer summary of the opinion for these basic rules of contract construction.

Energen’s position was that “150-day term” meant that every term (whether “extended” or not) is 150 days for purposes of calculating unused days. The lessee may not “accumulate unused days” from a term after its 150th day, nor may a lessee use “unused days” to extend anything other than a 150-day term.

The Court turned to the argument the lower courts found persuasive: the provision distinctly refers to “any … term” in the singular rather than plural with regard to the term in which days can be accumulated. This, said Energen, meant that unused days can only come from the one term immediately preceding the “next” term to be extended.  Endeavor countered that focusing on the “next” term begs the question of whether unused days carried over from one term become a substantive part of the latter term. If they do, there will always be a next term for them to carry over into.

The parties addressed the word “accumulate.” Endeavor argued that it indicated a right to stack up, gather, or compile days over multiple periods. The Court concluded that “accumulate” can also be used to describe general increases, regardless of their temporal nature, and outsized importance cannot be placed on a generally-used term.

With textual analysis producing a draw, the Court turned to the business objectives of the parties.  See, again, the attached summary for their points.  Neither side carried the day.  As an aside, the Court noted that the mere existence of model forms or templates the parties could have used should have any bearing on a contract interpretation.

Having exhausted the principles of textual construction and economic intent, the Court found both parties’ arguments to be reasonable, rendering the clause ambiguous as a matter of law.  So it’s back to the trial court for further proceedings, except for the judgment confirming Endeavor’s tite.

Advice to scriveners

The Court closed with a warning to those who draft contracts: “Because ‘[a]mbiguities [in continuous-development clauses] are frequent in concerning the times at which wells must be commenced,” “[g]reat care should be exercised in drafting to avoid question of whether the lessee has complied. Had greater care been taken in the drafting of this continuous-development clause, this litigation could have been avoided.”

Santa is gone from every place except our blog. This quaint carol is presented by our colleague, energy lawyer/musical anarchist Ethan Wood.

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