Last week, the Dallas Court of Appeals overturned a $98 million trial court judgment, which was based on a jury finding that BBVA USA (BBVA) had defrauded one of its commercial borrowers.[1] See BBVA, et al. v. Bagwell,
Continue Reading BBVA USA Receives Holiday Gift From Dallas Appellate Court: The Decision Includes Guidance for Private Company Owners
Under Texas law, when the owners of closely held companies have co-investors, they need to exercise care in managing their business. This need for caution is due in large part to a Texas statute that makes it easier for minority
Continue Reading Navigating Safe Harbors: Review of the Protections Provided to Governing Persons by the Texas Interested Party Statute and the Business Judgment Rule
Small, private companies are often viewed as a key to the growth of the GDP in the U.S. Even small companies quickly realize, however, that they are competing for business not just in their own neighborhood, but as part of
Continue Reading Under Texas Law, You Can Have Your Cake, But Not Always Eat it Too: Choice of Forum Clauses Are Enforceable, Choice of Venue Has Limits
As we have noted in previous posts, it can become critical for the majority owner of a private company to remove a business partner who holds a minority ownership stake in the business and who is causing major dysfunction in
Continue Reading Don’t Wait to Jump Off the Bandwagon: Cutting Ties With a Bad Business Partner (Part 2)
Experience teaches us that all relationships have ups and downs, including those existing between business partners. When the relationship becomes strained between partners in a private company, however, the majority owner of the business must decide whether these problems are
Continue Reading When to Pull The Plug: Is It Time to Say Goodbye to Your Business Partner? (Part 1)
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It is common for private company co-owners to have disagreements while they operate their business, but they typically work through these disputes themselves. In those rare instances where conflicts
Continue Reading Feuding Business Partners in Private Companies: Considering Arbitration to Resolve Partnership Disputes
The legal front remains forbidding for private company minority investors who seek to secure a buyout of their ownership stake based on claims for oppression against the company’s majority owners. It has been six years since the Texas Supreme Court
Continue Reading The Plight of Oppressed Private Company Minority Investors: No Legal Escape Available Without a Buy-Sell Agreement in Place
In February 2009, Pittsburgh Steelers wide receiver Santonio Holmes made a toe tapping catch in the back corner of the end zone[1] to secure a thrilling, come-from-behind win and crush the hearts of Arizona Cardinals fans in Super Bowl
Continue Reading Keeping Things Inbounds: Private Company Owners Need to Abide by Clear Fiduciary Duties in Managing Their Companies
According to the financial press, private equity investors are holding huge sums waiting for the right private company in which to invest. In late March, CNBC reported that private equity firms have a staggering $1.5 trillion in cash on hand
Continue Reading Looking Past the Face of the Shiny Penny: Check the Fine Print of All Private Company Investments
There are many reasons for business owners to consider adding new partners, including to secure additional capital, to add needed expertise to help grow the company, to bring family members or close friends to join in building the business and
Continue Reading Keeping Eyes Wide Open When New Members Join the Pack: A Cautious Approach to the Addition of New Business Partners
