Pennington v. Fields, No. 05-19-00149-CV, 2020 WL 2611251 (Tex. App.—Dallas May 22, 2020, pet. denied) (mem. op.)

Pennington v. Fields, No. 05-19-00149-CV, 2020 WL 2611251 (Tex. App.—Dallas May 22, 2020, pet. denied) (mem. op.)

Successfully reversed summary judgment in majority shareholders’ favor and rendered summary judgment in favor of minority owner in a closely -held corporation, holding that Retiring Shareholder provision of Cross Purchase Agreement required remaining shareholders to purchase retiring shareholder’s shares.  In doing so, Court of Appeals rejected majority shareholders’ arguments that (1) provision created only an option, but not an obligation, to purchase retiring shareholder’s shares and (2) that minority shareholder was not a “retiring” shareholder because majority shareholders terminated his employment with the closely-held corporation and minority shareholder had taken employment elsewhere.

Tammy Holt, Of CounselThad D. Spalding, Partner