This week TCJL filed an amicus brief urging the Texas Supreme Court to grant the petition for review in Phillips v. Carlton Energy Group, LLC (No. 12-0255). This case, which arose out of an unsuccessful oil and gas investment, raises important corporate law and damages issues. In its brief, TCJL argues that the Court of Appeals erred in disregarding the law of Nevada, which states that whether the corporate veil may be pierced in order to hold shareholders liable for the corporation’s actions is a question of law to be determined by the court after the jury has found the pertinent facts.
TCJL argues further that, in addition to correcting the Court of Appeals’ error, the Supreme Court should overrule Castleberry v. Branscum, 721 S.W. 2d 270 (Tex. 1986). That decision, one of a series of SCOT opinions from the mid-1980s that helped make Texas “the courthouse for the world,” made it much easier for claimants to succeed in veil-piercing claims.
Finally, TCJL urges the Court to accept review to correct the Court of Appeals’ error in allowing speculative damages for lost market value without reasonably certain proof.