In this edition: Paxton loss in state fair case could have a ripple effect, Camp Mystic seeks to block lawsuits against owners via bankruptcy, and Mikal Watts gets into AI.

Photographer: Andrew Harrer/Bloomberg

Ken Paxton lost his latest bid to force the City of Dallas to allow firearms at the State Fair, marking another loss for the attorney general at the Fifteenth Court of Appeals, Ryan Autullo reports.

Paxton had argued that firearms must be allowed at the annual state fair, which is put on by a nonprofit, because the city owns the 277 acres where it’s held. The 15th CoA disagreed, ruling unanimously that the law allowing people to carry a handgun openly in most public places applies only to government entities — not when a private entity leases the space. That reasoning hurts Paxton’s chances in two other state court cases involving firearm bans at City of Dallas performing arts venues operated by private entities.

The statewide court rejected Paxton’s challenge to the State Fair gun ban in 2024 as well, though this time it went further by granting summary judgment to the city and fair. Paxton is expected to appeal to the Texas Supreme Court, which denied him relief in 2024.

As Ryan notes, while Paxton has brazenly criticized the court’s justices after prior losses, he may be less likely to do so now as he tries to unite Texas Republicans around his US Senate bid. (Case in point: At rallies across the state this week, he’s been joined by some House lawyers who previously voted to impeach him.)

Mass tort attorney Mikal Watts, pictured at a court hearing earlier this year

Photographer: Jay Janner/The Austin American-Statesman via Getty Images

Mass tort attorney Mikal Watts is getting into the AI development game — and aiming to work with private equity — to sell tools to personal injury firms, Emily R. Siegel reports.

Watts partnered with the technology services arm of Monks to create proprietary AI that will boost the efficiency of tariff claims, personal injury claims, and mass torts by automating steps such as analyzing documents, drafting litigation, and verifying that cases qualify for a claim — all subject to attorney review.

Watts, who has helped plaintiffs sue Johnson & Johnson over talcum powder and utilities over California wildfires, took a four-month course on AI at the University of Texas before taking on an AI partner to create the model. “There’s so many vendors that are charlatans that will sell you oceanfront property in Arizona,” he said. “You needed to understand enough about artificial intelligence to keep yourself from getting ripped off.“

The test for Watts will be to make his AI approach stand out in a crowded field. Kirkland announced in June that it’s committing $500 million to a partnership with Palantir to develop AI. Other law firms are hiring AI directors, and startup legal entities are also trying to chart a path with their use of AI.

Courtesy of K&L Gates

K&L Gates’ Kate Goodrich says one of the most rewarding parts of her job as a partner in the firm’s public policy and law practice group is working on affordable housing. That’s included work such as preserving the property tax exemption that makes affordable-housing financing deals possible.

Goodrich shared the policy trends she’s closely watching, the questions data center growth poses, and the challenges of being a lawyer in Texas.

This conversation has been edited for length and clarity.

What’s an emerging policy trend you’re watching?

The intersection of data center growth, energy demand, and water policy in Texas. As AI and cloud computing continue to accelerate demand for large-scale data infrastructure, the Legislature, state agencies, and industry stakeholders are increasingly focused on questions around grid reliability, power generation, transmission capacity, and responsible water use.

Continued growth in our state will require thoughtful policy solutions around how we plan for increased demand and ensure the state’s infrastructure can support that growth. This will be a defining issue at the Capitol in the years ahead, and success will depend on bringing together policymakers, industry, and communities around solutions that work in practice, not just on paper.

What’s most challenging about practicing law in Texas right now?

My practice sits at the intersection of law, public policy, and government relations, where clients increasingly need strategic counsel on not only what the law is today, but what it will be in the future. The greatest challenge, and opportunity, is helping clients navigate a legal and legislative landscape that is evolving as quickly as Texas itself. Today’s clients are looking for more than legal interpretation and policy advice. They want ... practical, forward-looking advice that accounts for their own strategic objectives, regulatory developments, and the realities of the policymaking process.

Where’s the best BBQ in Texas?

I’m going to say Austin, and I know that’s a bold answer in a state with a lot of great BBQ. I got married last August and Rolling Smoke catered our rehearsal dinner, so they will always get a special shoutout from my husband and me. But I also love grabbing barbecue from Stiles Switch, LeRoy and Lewis, and KG BBQ.

Know a Texas legal star we should feature? Email skamal@bloombergindustry.com.