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$3 Million Breach of Fiduciary Duty Judgment Reversed on Appeal

Brett Kutnick and Jennifer Stagen were principal members of the legal team that successfully represented Douglas Strebel in an appeal of a judgment after a jury trial awarding the plaintiff, a member of a Delaware limited liability company and a limited partner in a Texas limited partnership, nearly $3.5 million in lost distributions, attorney’s fees, and interest based on alleged breaches of fiduciary duties by Strebel.  Following oral argument, the Court of Appeals for the First District of Texas in Houston held that the parties contractually disclaimed the fiduciary duties related to profit distributions to the plaintiff.  The court thus reversed the judgment on the plaintiff’s breach of fidcuary duty claims and remanded the case to the trial court for consideration of the jury’s alternative liability and damages finding on the plaintiff’s minority oppression claim.  Strebel v. Wimberly, 371 S.W.3d 267 (Tex. App.–Houston [1st Dist.] 2012, pet. denied).