Court of Appeals Upholds Finding of Shareholder Oppression and Stock Buy-Back Remedy
March 28, 2011 in Case Summaries
In a closely-watched case involving shareholder oppression, the Dallas Court of Appeals upheld a judgment in favor of Levinger PC client Ann Rupe based on the jury’s finding that she had been oppressed by the officers and directors of Rupe Investment Corporation when they refused her request to meet with potential purchasers of her stock. The appellate court also upheld the trial court’s order requiring the defendants to buy back Ms. Rupe’s stock as an equitable remedy for their misconduct. In a landmark ruling that redefined the text of shareholder oppression in Texas, the Supreme Court held that the conduct at issue did not satisfy the new definition of oppression, but remanded the case for further analysis of Ms. Rupe’s fiduciary duty claim. Ms. Rupe was represented at trial by Steve Aldous and Charla Aldous. Ritchie v. Rupe, as Trustee for the Dallas Gordon Rupe, III 1995 Family Trust, 339 S.W.3d 275 (Tex. App. — Dallas), rev’d in part, 443 S.W. 30 856 (Tex.2014).
Courts: Supreme Court of Texas, Texas Intermediate Appellate Courts
Subject Matter: Business Litigation