Construction Termination Dispute to Be Heard By the Texas Supreme Court

On June 11, 2021, the Texas Supreme Court granted oral argument in a construction dispute that will significantly affect the construction industry and its professionals. General contractor James Construction Group, LLC and its parent company Primoris Services Corporation, both represented by Cokinos | Young, seek enforcement of an unambiguous termination-for-default provision that requires three separate owner-provided written notices before effective termination for default. Among the issues that Cokinos | Young has asked the Texas Supreme Court to address is whether an owner must strictly comply with the agreed-upon express conditions precedent to its right to terminate its contract with the general contractor for default and recover damages from the general contractor, or whether “substantial” compliance with those conditions is sufficient. The date of oral argument has not yet been announced. The Texas Supreme Court’s decision will have long-term impacts on contracts for construction projects, so follow closely. See James Construction Group, LLC & Primoris Services Corporation v. Westlake Chemical Corporation, No. 20-0079.

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