Nick Arkells, JD, MBA

WSJ report on Q1 GDP: "The 0.3% decline in GDP fell short of the 0.4% growth that economists surveyed by The Wall Street Journal expected." Trouble looming for your firm? Not necessarily. Some firms will prosper in changing economic times. In a contracting economy we may have to make difficult budgetary decisions. Equally important to getting the numbers right is honest and transparent communication. In hard times it's important to make sure everyone knows the plan and the path forward. I recently wrote about managing through economic slowdowns in an article for the The Texas Lawbook: "At the end of each day, everyone needs to go home with awareness of their role in the firm’s success. When we ask more from them, they need to know their contributions and sacrifices will be noted and rewarded in better times." https://lnkd.in/gD9qBz85

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Friends – On behalf of Joel Swider and myself, below is our weekly hospital real estate briefing: 1. University Health (San Antonio, TX) received approval to purchase the former Christus Santa Rosa Hospital campus for $71M. The 45-acre site also includes two MOBs, a parking structure and a solar farm. The buyer plans to spend $20M to renovate the hospital.   2. CMS Administrator Dr. Oz said applications for the agency’s $50B rural hospital fund will be available in early September as part of the recently passed One Big Beautiful Bill Act legislation. The fund is intended to cover the expected shortfall created by lower Medicaid provider taxes, which states use to fund part of their Medicaid costs.   3. Children's Hospital of Philadelphia plans to convert a former movie theater in Hamilton Township, NJ, into a pediatric care facility. Similarly, Cone Health recently transformed an abandoned grocery store in Eden, NC, into a multi-service health and wellness center.   4. UW Medicine selected a design-builder to lead the $1.74B expansion of Harborview Medical Center in Seattle. The expansion will strengthen Harborview’s role as the only Level 1 trauma center serving the 5-state region of Washington, Wyoming, Alaska, Montana and Idaho.   5. As ASCs continue to expand, cardiology is now the fastest-growing specialty for such facilities, with 26 cardiology-focused ASCs being opened or announced in 2024 alone. As of early 2025, 234 Medicare-certified ASCs offered cardiovascular services.   6. Geisinger Health System recently opened a new behavioral health center in Danville, PA. The $49M center will serve patients facing behavioral health issues and increase Geisinger’s previous bed count from 46 to 96, with the capacity to expand to 120 beds.   7. Texas state officials broke ground on a $121M psychiatric facility in Lubbock, which was approved by the Texas Legislature during its last session. The new 50-bed hospital will be operated by the Texas Health and Human Services Commission and is expected to be completed in 2027.   8. Parkview Health announced plans to build a $200M hospital and medical office building in West Lafayette, IN. The project is set to include up to 40 inpatient beds, a 24/7 emergency department, outpatient services and specialty care, with an opening date in 2028.   9. HSHS St. Elizabeth's Hospital in O’Fallon, IL, launched a $50M expansion project to build a new outpatient surgical center and medical office building. The project, expected to be completed by spring 2027, includes upgrades to existing hospital infrastructure and is part of a broader effort to keep patients local.   10. Virtua Health began construction on a $500M expansion and renovation project at Virtua Our Lady of Lourdes Hospital in Camden, NJ. The project includes a nearly 200,000-sf patient care pavilion, which will add 78 private patient rooms, 10 operating rooms, 40 surgical prep and recovery rooms, four cardiac cath labs and three electrophysiology labs.

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📢 New Texas Supreme Court Opinion Clarifies “Unavoidable Accidents” and No-Evidence Summary Judgment Standards The Texas Supreme Court issued an opinion in Lozada v. Posada (No. 23-1015) — essential reading for personal injury attorneys on both sides of the docket. ✅ Key Holding: The Court held (I believe for the first time) that plaintiffs bear the burden at trial to prove that an accident was not unavoidable and that the defendant’s conduct was not excused. 🔍 Case Overview: The case arose from a collision in which the defendant’s vehicle jackknifed on the highway after a tire failure, blocking traffic. The plaintiff collided with the disabled vehicle and sustained injuries. The defendant claimed the incident was an unavoidable accident and that his conduct was excused. He filed a no-evidence motion for summary judgment, arguing there was no evidence of his negligence. The trial court agreed and granted the motion. The Court of Appeals reversed, finding that the plaintiff’s evidence — including the defendant’s speed in foggy conditions and his reaction to the tire blowout — could allow a reasonable jury to find negligence. The Texas Supreme Court reversed, holding that the plaintiff's evidence did not rise above a scintilla and was insufficient to create a fact issue on negligence. The Court concluded the evidence showed, at most, that this was simply an accident without fault. 🚩 Notably: The plaintiff argued that a no-evidence motion was improper because the burden of proof for “unavoidable accident” and excuse defenses lies with the defendant. The Court rejected this, clarifying that the plaintiff has the burden of proof at trial to show that his injuries were not a result of an “unavoidable accident” and that the defendant's conduct was “unexcused."

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Our lawyers provide an overview of the far-reaching changes adopted by the Texas Supreme Court to its procedures for granting review and discuss the likely effect of the changes on Texas business litigation.

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Governor Abbott recently signed legislation codifying the business judgment rule, strengthening Texas’ reputation as one of the nation’s most business-friendly states. Clear, consistent legal frameworks matter—especially for companies making high-stakes decisions. #Litigation #TexasBusiness #SB29 https://lnkd.in/eNauQuAG 

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Does the price of admission for institutional-grade multifamily in prime Texas suburbs come with a cap rate in the 4s? Here's another big deal that suggests that's the case. AvalonBay -- the nation's largest apartment REIT by market cap -- continues its Texas expansion with the acquisition of 2,701 units in suburban Dallas and Austin from BSR REIT. The average property age is 11 years old, and AvalonBay said the cap rate is "in the high 4% range." The transaction includes 6 suburban Dallas properties and 2 suburban Austin properties. Vintages range from 1995 to 2021, but most were built in the last decade. While Texas is still in the throes of a 40-year supply peak, those pressures should dissipate later this year and into 2026 given the plunge in starts. And while everyone talks about supply, we don't talk enough about the incredible demand tailwinds. These have long been some of the highest demand markets in the country, and not just since COVID. So assuming the economy is in decent shape, there's little to suggest that demand won't continue. What happens if demand remains strong as supply drops off? That's what AVB and other Texas buyers are banking on. It's, of course, a longer-term bet on Texas post-supply wave. And that's why as much as you may not like a cap rate in the 4s for 11-year-old apartments in higher quality suburbs, that appears to be the price of admission today. #apartments #multifamily #reits

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🚨 Texas Business Court: Expansions are Coming Both houses of the Texas legislature have passed House Bill 40, ushering in significant changes to the Texas Business Court. From lowering the monetary threshold to embracing IP and arbitration-related disputes, the bill expands the Business Court’s jurisdiction and reach in numerous ways. The Haynes Boone Texas Business Courts Task Force is closely tracking these developments and what they mean for business. Learn more about this bill from Partners Natasha Breaux and David Harper: https://lnkd.in/gHtdFnB9

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Dallas-Fort Worth is again expected to be the nation’s hottest real estate market for investment and development. D-FW led the field in a scorecard of metro areas that property executives expect to prosper in 2026. It’s the second straight year that North Texas has topped the PriceWaterhouse Coopers and the Urban Land Institute’s Emerging Trends in Real Estate report.

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A team of #FinancialServices attorneys recently advised Elk Range Royalties II LP on the upsize and #syndication of its existing credit facility with Texas Capital Bank. The upsize of the credit facility was used to finance a portion of the purchase price for the landmark #acquisition of DJ Basin. The firm's representation of Elk Range II was led by attorney Kurt Summers with assistance from Lev Prichard V, Jordan Paine and Alex Tran. Read more about the #transaction: https://bit.ly/3E4VKfC #oilandgas

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Another restrictive covenant bill from the Texas legislature: this one addressing confidentiality and non-disparagement provisions and with the potential for damages or civil penalties. 🤫 💸 If passed, HB5425 would void nondisclosure, confidentiality, or non-disparagement agreements that restrict an employee from disclosing or discussing conduct they reasonably believe violates state or federal laws related to wages, discrimination, harassment, retaliation, or sexual assault. Employers would also be prohibited from discriminating against, retaliating against, or requesting an individual to sign such restrictive agreements. Aggrieved employees could bring civil actions with potential damages of either actual damages incurred or $10,000, whichever is greater, plus reasonable attorney's fees and costs. The "reasonably believe" standard would sure make it a fun law to litigate, especially with the potential to recover attorney's fees/costs! https://lnkd.in/gMynZUSx #employmentlaw #restrictivecovenants #texas

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Money isn’t just for Biglaw. Boutique law firms continue to step up, not only matching, but in some cases surpassing the Biglaw compensation scale. One Houston litigation boutique recently boosted first-year associate pay to $235,000, with second-years also receiving a raise. But here’s what really sets boutiques apart: the experience. Associates aren’t stuck in the back making outlines they’re in the courtroom, taking depositions, and building real trial skills from the start. When you combine top-tier pay with hands-on training and the chance to develop into a true litigator early on, boutiques can offer a powerful alternative to the traditional Biglaw path.

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Attorney Michael Wynne Featured in Texas Bar Journal’s June Director Spotlight. Michael Wynne, partner at Gregor Wynne Arney in Houston and State Bar of Texas Board Member for District 4, Place 4, is featured in the June edition of the Texas Bar Journal’s Director Spotlight. This monthly feature highlights the dedicated volunteers who help shape the legal profession in Texas. In his interview, Michael shares his background, passion for white-collar criminal defense, and what he sees as the most pressing issue facing Texas attorneys today. Originally from Marcellus, New York, Michael credits his father—a French professor at Syracuse University—for inspiring his love of reading. Severe childhood asthma ruled out sports, and fainting in biology class ruled out medicine. But a mock trial program led by a Pink Floyd-loving social studies teacher opened the door to law. He’s been practicing ever since. Michael has spent his career helping individuals and families navigate the challenges of federal investigations and charges. “It is humbling, meaningful, and, thankfully, often successful,” he shares. “Counsel must shepherd the client and family through what is often the most traumatic period of their lives.” His time as a State Bar Director has deepened his appreciation for the independence of the Texas legal profession. “We owe gratitude to the past presidents, directors, and permanent staff through whose efforts we remain a self-regulating entity,” he notes. He also believes board members should serve as a resource to their local legal communities—helping colleagues navigate frustrating or confusing administrative experiences with the Bar. When asked about the biggest challenge Texas lawyers face, Michael points to the decline of mentorship and practical training. “Law firms are becoming more siloed. For better or worse, law is being transformed from a profession into a business,” he says. While the shift is likely irreversible, he encourages legal professionals to actively foster learning and mentoring opportunities for the next generation. Michael offers this advice to law students and young attorneys: Don’t try to read everything—focus on applying legal knowledge. Take practice exams seriously. Learn the terminology—even obscure concepts return later. Seek mentors and specialize early to stand out in the legal market. Build a pipeline of solid, reliable clients. After serving 12 years as an assistant U.S. attorney, Michael returned to private practice and ran for the State Bar Board to give back to the profession and his adopted home state. Read the full article here: https://lnkd.in/eEMCRZyj #TexasLawyers #TexasStateBar #LegalLeadership #AttorneySpotlight

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