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Brauss, Eric W, Christine Brauss v. Nixdorf Parties
411 S.W.3d 614
| Tex. App. | 2013
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Background

  • Case centers on Brauss-controlled real estate partnerships and a settlement distributing assets via a receiver; trial court approved a broad settlement and issued substantial damages against Brauss, Martin, TRA, and related entities.
  • Plaintiffs included eight investors asserting breach, fiduciary duty, alter ego, and veil-piercing claims; two groups (Nixdorf and Song-Winkler) intervened, with Song-Winkler later struck.
  • The trial court entered a final judgment awarding over $65 million to the plaintiffs and over $48 million to the Nixdorf appellants, appointing a receiver, and determining ownership and proceeds of Sugar Land project interests.
  • Brauss and Martin settled, then intervened to enforce the settlement; the court did not file written findings of fact and conclusions of law.
  • On appeal, only some parties challenged the judgment; the court reversed part of the judgment against Martin for the Nixdorf appellants and affirmed the rest.
  • The court ultimately rendered, and the judgment on appeal was entered August 13, 2013.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Sufficiency of evidence against Brauss and Martin for Nixdorf claims Nixdorf asserts substantial evidence of fraud and misrepresentation Brauss/Martin argue insufficiency or lack of direct dealings Evidence supports fraud/fraudulent inducement against Brauss; Martin liability lacks evidentiary support
Martin's guaranty and note maturity alteration Watercrest pled valid guaranties; Martin violated agreement Martin preserved no affirmative defense in response Affirmative defense not preserved; judgment against Martin affirmed except as to the guarded issue
Standing to challenge damages against co-defendants Nixdorf/Horseshoe claimants assert cross-claims affected by judgment Interests not injuriously affected; lack standing Nixdorf/Horseshoe have no standing to challenge other group’s damages
Intervention by Song-Winkler and mootness Intervention sought relief on promissory notes and related claims Subsequent separate judgments resolved those claims; mootness applies Moot with respect to some issues; others not moot; court upholds denial of intervention
Sugar Land distribution allocations Distributions should reflect capital contributions including non-cash credits Distribution per partnership agreement; accounting records support allocations Court’s Sugar Land distribution allocation sustained

Key Cases Cited

  • City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (legal sufficiency and evidence review standard for appellate courts)
  • Dow Chem. Co. v. Francis, 46 S.W.3d 237 (Tex. 2001) (sufficiency review; great weight standard when reviewing factual findings)
  • Haase v. Glazner, 62 S.W.3d 795 (Tex. 2001) (fraud elements in contractual context; fraudulent concealment considerations)
  • Baxter v. Palmigiano, 425 U.S. 308 (U.S. 1976) (adverse inferences from exercising Fifth Amendment in civil cases)
  • Union Carbide Corp. v. Union Carbide, 273 S.W.3d 152 (Tex. 2008) (justiciable interest and intervention framework; proper scope of appellate review)
  • Guar. Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652 (Tex. 1990) (abuse of discretion standard in ruling on intervention/joinder)
  • St. Joseph Hosp. v. Wolff, 94 S.W.3d 513 (Tex. 2002) (standard for reviewing credibility and factual findings in bench trials)
Read the full case

Case Details

Case Name: Brauss, Eric W, Christine Brauss v. Nixdorf Parties
Court Name: Court of Appeals of Texas
Date Published: Aug 13, 2013
Citation: 411 S.W.3d 614
Docket Number: 05-11-00271-CV
Court Abbreviation: Tex. App.