In Texas, a creditor who contracts for, charges, or receives interest in excess of the amount allowed under the usury statutes can be subject to harsh, often draconian-like, penalties. However, a recent decision by the Texas Court of Appeals in El Paso provides some relief to well- intentioned creditors who attempt to cure a prior alleged usury violation.

The Texas legislature has changed the jurisdictional limit of Justice of the Peace courts in Texas. As of September 1, 2007, the limit goes from $5,000 to $10,000. See § 27.031(a) of the Texas Government Code. With few exceptions, the total amount of a judgment that can be taken against a defendant in a Justice of the Peace court will become $10,000.

In the last newsletter we addressed several questions which affect landowners when faced with the threat of condemnation of their land. We dealt briefly with such questions as who has the power to condemn, for what purposes land may be taken, and what limitations on the power exist, including a landowner's ability (or the lack thereof) to affect the scope of a condemnation. As might be expected, many other questions, both practical and legal, are raised by the condemnation process, such as:

1. must the condemnor negotiate with the landowner to try to arrive at an agreed price?
2. does a condemnor have the right to enter private property to conduct a survey?
3. must the condemnor and landowner reveal to the other any written appraisal(s) they have of the property?
4. what happens when there is no agreement on the value of the property?

As with the previous article, this one will provide short answers to the above questions to provide some insight into the condemnation process.

Contingent payment clauses, i.e., "pay-if-paid" or "pay-when-paid" clauses have plagued the lower tiers of the construction industry for years. The Texas Legislature recently has addressed this problem by amending the Texas Business and Commerce Code by adding section 35.521, which becomes effective September 1, 2007. Importantly, these new provisions cannot be waived by contract. Please click here to finish reading the article on Hirsch & Westheimer's website.