Court Declines Review, Giving Complete Victory to Haynes and Boone Client ARGO Data Resource Corporation

06/27/2014


In a complete victory for Haynes and Boone client ARGO Data Resource Corporation, the Texas Supreme Court declined Friday to review the Dallas Court of Appeals decision in Shagrithaya v. ARGO and Martin, in which the Dallas court held that ARGO and its CEO Max Martin had not oppressed or caused harm to ARGO's other shareholder who held a minority position.

The case follows a decision last week by the Texas Supreme Court in Ritchie v. Rupe in which the court refused to recognize a common law cause of action for shareholder oppression in Texas and adopted stricter standards to demonstrate oppression under the Texas Business Organizations Code.

"Of course, we are very pleased with this result and for the vindication it brings for our client ARGO and its CEO Max Martin,” said Dallas Partner David Harper, ARGO’s trial counsel. “We have always maintained that they conducted themselves properly, and they had to endure a long legal process to demonstrate that. We believe today's decision confirms that they were in the right."

Fort Worth Partner Karen Precella, lead counsel on the appeal, said: "We demonstrated to the Dallas court that there was no shareholder oppression or other legal harm in this case, and we are very pleased that the Texas Supreme Court decided to leave that result in place."

ARGO’s general counsel, Brian Jobe, noted: “ARGO and Mr. Martin have consistently maintained that the facts and the law did not support the trial court’s judgment. We’re glad the Dallas Court of Appeals and the Texas Supreme Court both agreed with us.”

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