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Derivative Standing Requires Contemporaneous Membership: Business Court Dismisses Claims After Buy-Sell Enforcement
Joel Reese | Jul 28, 2026
… partner, William "Will" Northern. The derivative claims—including breach of fiduciary duty, fraud , negligent misrepresentation, breach of contract, conspiracy, and misappropriation of confidential information—were brought on behalf of three entities: Northern Crain Realty, LLC, Northern Crain Property Management, LLC, and Northern Crain, LLC (collectively, the "NC Entities"). But the case reached Division 8 with …
Business Court Retains Jurisdiction Over LLC Winding-Up Despite Parallel District Court Litigation
Joel Reese | Jul 28, 2026
… parents through a family partnership. Ezzell has acted as the LLC's sole manager , though Martens alleges Ezzell "unilaterally declared herself to be Manager (and did so without any authority)" because the LLC's regulations require a majority vote to elect a manager —impossible with a 50/50 deadlock. The dispute erupted in July 2022 when Martens …
Fiduciary Shield Doctrine Protects Out-of-State Officer from Personal Jurisdiction in Real Estate Joint Venture Dispute
Joel Reese | Jul 28, 2026
… he acted outside his corporate capacity. The ruling suggests that officers and managers of out-of-state entities may successfully invoke the fiduciary shield even in fraud cases involving Texas real property, provided the evidence shows they acted on behalf of their companies rather than in a personal capacity. For practitioners, the case underscores the …