Opinion

R. Scott Brown v. Allen D. Keel

Court
Texas Court of Appeals, 1st District (Houston)
Filed
Mar 8, 2012
Status
Published
Cited by
0 cases

The opinion

Opinion issued March 8, 2012

In The

Court of

Appeals

For The

First District

of Texas

————————————

NO. 01-10-00936-CV

———————————

R. Scott Brown , Appellant

V.

Allan D.

Keel , Appellee

On Appeal from the 234th District Court

Harris County, Texas

Trial Court Case No. 2009-04679

Concurring

and Dissenting Memorandum Opinion

The

trial court’s grant of JNOV on the ground that there was no evidence of a partnership

was error, and I join the majority in so holding.

I dissent, however, from the majority’s conclusion

that there was not more than a scintilla of evidence to support the jury’s

verdict as to causation.

As long as a reasonable jury could

infer that Keel’s actions were a substantial factor in having brought about Brown’s

injury (the loss of the compensation package that he had negotiated), without

which Brown’s injuries would not have occurred, the trial court should not have

disregarded the jury’s finding of causation and rendered the JNOV.

Brown was

informed by the Oaktree managing

director on January 30th that he had been excluded as GulfWest’s prospective CFO. During this same conversation,

he was told of Oaktree’s interest in his enjoying

some measure of ownership participation to compensate his facilitation of

the deal, or perhaps service as a director or some other management

position at which he would receive “the compensation package that [he] had

negotiated” (for both Keel and himself).

When the same Oaktree managing

director sought Keel’s input on placing Brown with the company, Keel

began confessing his “difficulties seeing (Brown’s) role if it is not that

of CFO.” Keel also stated, “If that [CFO

position] wasn’t going to be an option, then it was going to be tough to find a

spot,” “I don’t see much room for compromise,” and, most telling: “I would

expect [a new CFO] to want a meaningful piece of the upside, which would have

to be extracted from [Brown’s] share of the management equity.” Despite Brown’s consideration for other slots

following his exclusion as prospective CFO, Skarden

Baker, Oaktree principal and lead negotiator, testified,

“Keel said: No, I don’t want him,” and thus ended Brown’s actual

participation with, and prospective benefit from, the very deal he

had discovered and negotiated.

A reasonable jury could have inferred

Keel’s actions caused Brown’s loss of the compensation package that he had

negotiated. As a death knell is composed

of more than a single peal of the bell, here, Keel’s substantial role in

Brown’s loss need not be the sole cause.

Jim

Sharp

Justice

Panel consists of Justices

Jennings, Sharp, and Brown.

Justice Sharp, concurring and

dissenting.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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