Highland Homes Ltd. v. State (Opinion)
Annotate this CaseTwo subcontractors employed by Petitioner, a homebuilder, asserted claims on behalf of a class of subcontractors whose pay Petitioner had docked when the subcontractors did not furnish proof of adequate general liability insurance coverage. The parties settled. Under the terms of the settlement agreement, Petitioner would issue refunds checks, sending them to existing subcontractors as it would their paychecks or by mailing checks to the last known addresses of former subcontractors. The class representatives agreed, on behalf of the settlement class members, that refund checks not negotiated within ninety days of issuance would be void and that those and other unclaimed funds would be given to The Nature Conservancy as a cy pres award. The trial court approved the settlement and rendered final judgment accordingly. The court of appeals reversed, concluding that the Texas Unclaimed Property Act prohibited the imposition of a ninety-day deadline for negotiating settlement checks and the cy pres award. The Supreme Court reversed, holding that the Act did not apply in this case and that the judgment approving the settlement agreement was binding on all settlement class members.
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