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DFW RIMS External Affairs Committee | November Update
Tracking Policy, Courts & Advocacy Shaping the Risk Landscape

The External Affairs Committee continues to track legislative discussions in the run-up to the 90th legislative session. As more information is received, we will continue to report to members on any new headlines. Here is a recap of what is going on in the political environment down in Austin.

🏛️ Texas Legislative & Regulatory Updates

In Texans for Legal Reform’s (TLR) recent newsletter they highlight that affordability is a top concern of voters going to the polls to select a voice that will focus on kitchen table politics, the real issues that are leading to inflationary costs that erode funds for individuals and families across the state. Legal abuse is a hidden cause attached to affordability that many overlook, however elections are a big first step to changing the tide of legal abuse. The Texas Department of Insurance recently conducted their Speak Up, Texas! campaign to get a pulse on what issues policyholders across the state were concerned about and what changes they wanted to see moving forward to directly address affordability. 

The responses focused on Homeowners and Auto coverage with a majority of responses focused on affordability and rate increases. The voice of Texans shows affordability is a major concern and legal abuse plays a key role in protecting citizens from rate increases pushed down by insurance carriers due to social inflation. The upcoming election results will provide a clearer picture in how affordability will be addressed in the 90th legislative session with tort reform being a key area of discussion for legislatures. We will continue to monitor any updates on tort reform momentum after the elections have concluded. 

⚖️ Texas Appellate & Judicial Developments

The Texas Supreme Court stayed quiet in October with decisions impacting our members however we are able to report out on a few cases that are of interest to our risk management community.

📜 Reaffirmation of the Economic Loss Rule

In Asset Risk Management LLC v. Comal Energy Services LP, a Texas Court of Appeals reversed a $9.3 million jury verdict by reaffirming the strict boundaries of the state’s Economic Loss Rule. The court held that plaintiffs cannot repackage pure contractual performance disputes into tort claims such as negligent misrepresentation to pursue expanded consequential damages or circumvent agreed-upon remedies. For corporate risk managers, this decision underscores the strength of negotiated contract terms under Texas law. Standardized contract frameworks, limitation-of-liability caps, and clear sole-remedy provisions will continue to be enforced strictly, protecting commercial entities from extraneous tort exposure when contractual performance falls short.

🏢⚖️ Strict Causation Standards in the Texas Business Court

The newly operational Texas Business Court issued a key ruling in Southwest Airlines Pilots Ass’n v. The Boeing Co., dismissing large consequential damage claims including lost earnings, lost dues, and accrued legal fees for failing to meet Texas’s rigorous proximate cause standards during the pleading stage. While direct damage claims survived, the court’s early dismissal of speculative consequential losses demonstrates the specialized venue’s willingness to enforce high causation thresholds prior to costly discovery. Risk managers facing complex commercial litigation or tortious interference claims can draw confidence from this precedent, leveraging early pleading challenges to dismantle inflated damages theories before entering full-scale litigation.

 Critical Infrastructure & State Grid Restrictions (LSIPA Enforcement)

Addressing the state’s regulatory control over critical infrastructure, the U.S. Court of Appeals for the Fifth Circuit affirmed Texas's authority under the Lone Star Infrastructure Protection Act (LSIPA) in Renewable Energy Developer v. ERCOT Counsel. The federal appellate court held that Texas state law validly blocks electric grid interconnection access to business entities owned or controlled by designated foreign nations, rejecting assertions that federal oversight preempts state security restrictions. For risk managers overseeing energy generation, real estate development, or data center expansion across ERCOT’s footprint, this ruling elevates supply-chain and ultimate-beneficial-ownership due diligence to a paramount compliance requirement prior to submitting interconnection requests.

🏗️ Construction Defect & Commercial Delay Precedents

The Texas Business Court further established its jurisdiction over complex build environments through back-to-back rulings rendered by Judge Barnard and Judge Sharp in late October 2026. Addressing partial summary judgments in multi-party construction defect suits and commercial delay disputes, the court demonstrated how efficiently high-value development conflicts will be navigated within the specialized state court system. As commercial project disputes meet the statutory amount-in-controversy thresholds, risk managers reviewing Master Services Agreements (MSAs), subcontractor default coverage, or Owner-Controlled Insurance Programs (OCIPs) should evaluate venue selection clauses to ensure intentional alignment between traditional local district courts and the Texas Business Court.

💰⚠️ Nuclear Verdicts

ated contract terms under Texas law. Standardized contract frameworks, limitation-of-liability caps, and clear sole-remedy provisions will continue to be enforced strictly, protecting commercial entities from extraneous tort exposure when contractual performance falls short.

💻⚡ Data Center Developments

ated contract terms under Texas law. Standardized contract frameworks, limitation-of-liability caps, and clear sole-remedy provisions will continue to be enforced strictly, protecting commercial entities from extraneous tort exposure when contractual performance falls short.

💥 Nuclear Verdicts - Texas

We continue to see a lull in large jury awards this Fall however there is one case we reported on in a recent edition with an update that provides a clear example of how risk managers must remain diligent in how transportation-related risks are identified and mitigated.

On October 16, 2026, a Dallas County, Texas judge affirmed a massive $604 million jury verdict in Lipe, et al. v. Lupus Superior, LLC, and C.H. Robinson Company, Inc. —now exceeding $700 million with pre-judgment interest—against freight broker C.H. Robinson following a fatal 2021 truck crash caused by a driver hired by Lupus Superior, the co-defendant. The decision underscores a growing effort by Plaintiff’s counsel to find that federal safety ratings alone, even when the carrier has the best possible rating, should not shield freight brokers from direct

The External Affairs Committee will continue monitoring legislative activity, key judicial opinions, and regulatory developments affecting commercial risk profiles across Texas. As strategies for the upcoming legislative session take shape, we remain dedicated to keeping DFW RIMS members informed and equipped to navigate evolving market conditions. Please feel free to reach out with any questions or topics you would like highlighted in future editions. 

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Interested in getting involved?

The External Affairs Committee welcomes insurance professionals and attorneys who want to stay engaged in legislative, regulatory, and legal developments impacting the industry. Join us as we continue to monitor key issues and help shape meaningful dialogue across Texas.

Cory Mangum  
DFW RIMS External Affairs Committee Chair
[email protected]