The Texas Court of Appeals has upheld a lower court's summary judgment in favor of Atmos Energy Corporation and MasTec North America, Inc., in a case involving property damage claims by Kamy Real Property Trust. The court's decision, issued on November 3, 2026, is significant for property owners and construction companies, as it clarifies the responsibilities of contractors and the legal standards for claims of negligence, trespass, and nuisance.

Kamy Real Property Trust, the appellant in this case, filed a lawsuit against Atmos and MasTec, alleging that construction activities near its properties in Denton County caused significant damage. The court's ruling affirms that the lower court acted correctly in granting summary judgment, which means that the case will not proceed to trial.

Background

The dispute arose from utility construction work performed by MasTec, which was contracted by Atmos Energy under a Master Services Agreement. This agreement designated MasTec as an independent contractor responsible for the construction, maintenance, and repair of natural gas facilities. Kamy claimed that from 2020 to 2023, MasTec's activities led to unauthorized industrial construction on its properties, resulting in various damages such as soil degradation and environmental hazards.

Kamy alleged that the construction activities included unauthorized storage, dumping, and land disturbance, which violated city ordinances and state regulations. In response, Atmos and MasTec filed motions for summary judgment, asserting that Kamy's claims lacked sufficient evidence. Kamy attempted to file late responses to these motions, which the trial court denied, leading to the appeal.

The Ruling

The Texas Court of Appeals ruled against Kamy Real Property Trust, affirming the trial court's decision to grant summary judgment in favor of Atmos and MasTec. The court found that Kamy did not present enough evidence to support its claims of negligence, trespass, and nuisance. The judges noted, "Kamy failed to produce evidence establishing duty, breach, causation, or damages for negligence claims. There was no evidence of intentional entry or damages for trespass claims."

Furthermore, the court addressed Kamy's arguments regarding the late filing of summary judgment responses, stating that the trial court did not abuse its discretion in denying the request. The judges emphasized that Kamy had the burden to show good cause for the late filing, which it failed to do. The court concluded that the trial court acted within its rights to deny the late responses and to grant summary judgment based on the evidence presented.

Impact

This ruling has important implications for property owners and contractors in Texas. It reinforces the legal principle that independent contractors, like MasTec, are generally not liable for the actions of their subcontractors unless there is evidence of control over the work being performed. This decision clarifies the standards for proving negligence and trespass claims, particularly in cases involving construction activities.

Moreover, the court's ruling may discourage similar lawsuits where property owners fail to provide sufficient evidence to support their claims. The decision could lead to more cautious behavior from property owners and contractors in future disputes, emphasizing the importance of thorough documentation and compliance with legal standards.

What's Next

While this ruling concludes the current appeal, Kamy Real Property Trust may consider further legal options, including a potential appeal to a higher court. However, details regarding any such plans were not available in the court filing. There may also be related cases pending that could further clarify the legal standards surrounding independent contractors and property damage claims.