One area in Texas commercial litigation that continues to evolve is the cause of action for theft of trade secrets. State and federal statutes have recently been enacted making it easier for businesses to protect their trade secrets. This is becoming increasingly important in the digital age when large amounts of information including protected trade
Texas Shareholder Derivative Actions Made Easier
Just when it looked like all was lost for minority shareholders of closely held Texas corporations after the Texas Supreme Court eliminated shareholder oppression as a cause of action, along came the Court’s decision of Sneed v. Webre, 465 S.W.3d 169 (Tex. 2015). In this fascinating decision, the Court found that shareholders of TX closely
Durable Power of Attorney Creates Fiduciary Relationship
A recent court of appeals discussed the significance of the fiduciary relationship created when someone signs a power of attorney authorizing another to act as their agent. (Jordan v. Lyles, 485 S.W.3d 785 (Tex. App. – Tyler 2015)). In this case, Bud executed a durable power of attorney appointing his stepdaughter as his
Fiduciary Duties Owed by Members of Texas Limited Liability Companies
The Texas Supreme Court has made it clear in a recent opinion that majority shareholders do not owe formal fiduciary duties to minority shareholders, even in closely held corporations. Cardiac Perfusion Services, Inc. v. Hughes, 436 S.W.3d 790 (Tex. 2014). However, a recent Texas appellate court held that managing members of a limited liability
Construction Delay Damages
Owners often require general contractors they hire to perform construction services to agree to waive their rights to recover delay damages. General contractors in turn require their subcontractors to agree to the same. When a contractor’s work is significantly delayed by others, this can result in catastrophic financial losses to the contractor.
Fortunately, the Texas
Texas Corporate Fiduciary Duties Alive and Well
The last post discussed the Texas Supreme Court’s recent decision in Ritchie v. Rupe eliminating shareholder oppression as a cause of action in Texas. However, all is not lost for minority owners in small corporations or limited liability companies who are treated unfairly. In fact, the same court made it clear that board of director
Texas Supreme Court Strikes Down Shareholder Oppression Cause of Action
This past summer the Texas Supreme Court in Richie v. Rupe, 2014 Tex. LEXIS 500 (Tex. 2014), all but eliminated shareholder oppression as a cause of action available to minority shareholders in closely held corporations being treated unfairly by the majority. The Court held that there is no common law cause of action for
Texas Supreme Court to Address Shareholder Oppression
It is no secret that a majority of Texas corporations are privately held companies controlled by a small number of shareholders. The controlling shareholders in these corporations may have a duty not to oppress the economic interests of the shareholders holding a minority interest. There are currently three cases pending before the Texas Supreme Court
New Texas Trade Secrets Act
Effective September 1, 2013 the Texas Uniform Trade Secrets Act becomes law. In the past, trade secret law in Texas has been largely governed by a large and sometimes confusing body of case law. Having a statute to rely upon should make it easier for companies to enforce their rights when their trade secrets are