Fin & Feather Club, by and Through Trustee, Kenneth Parten v. Dale Leander and Don Leander
2013 Tex. App. LEXIS 12809
Tex. App.2013Background
- Fin & Feather Club (the Club), through trustee Kenneth Parten, sued Dale and Don Leander to recover unpaid club dues, assessments, fines, and related charges tied to ownership shares in the Club.
- The case was previously tried (bench) with damages awarded to the Club; this court reversed the damages on appeal and remanded for a new trial limited to damages.
- Central factual disputes: the timing and recipients of transfers of Club shares (Dale’s transfer in 1996; Don’s ownership of two shares after 1998; later conveyances to Father and Sons Property, LLC), and whether Dale was personally liable for LLC-held shares.
- At retrial the Club called only Parten, who testified from club minutes and offered a summary of amounts allegedly owed by Don (2002–2003) and Dale (2004–2010); many underlying meeting-minute exhibits and deeds were marked but not admitted.
- Key evidentiary gaps: no competent proof identifying the principals or ownership interests of Father and Sons Property, LLC; no reliable evidence of the exact date Don delivered the deed conveying his shares (critical to fix the period of liability); no proof piercing the LLC veil or showing Dale’s personal liability for LLC debts.
- The trial court granted defendants’ motion for directed verdict for lack of probative evidence on damages and awarded costs and fees to Dale and Don; the Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Club produced any probative evidence of the amount of damages owed by Don and Dale | Club relied on Parten’s testimony and a summary compiled from club minutes that allocated dues/fines to Don and Dale and on alleged notice of transfers in 2005 | Leanders argued the Club failed to prove (1) identity/ownership of Father & Sons Property, LLC principals, (2) date of delivery of Don’s deed, and (3) any basis to hold Dale liable for LLC obligations | No — directed verdict proper: evidence insufficient to raise fact issue on damages for either defendant |
| Whether evidence established Dale as a principal of Father & Sons Property, LLC and thus personally liable | Club pointed to deposition testimony and prior partition award as indicia that Dale had an interest and was responsible | Leanders said there was no proof Dale was a principal of the LLC or that he could be held personally liable absent veil-piercing evidence | No — less than a scintilla showed Dale was a principal or personally liable; LLC protections apply absent proof of actual fraud |
| Whether the date of Don’s transfer to the LLC could be fixed for purposes of terminating his liability | Club argued notice in 2005 and the unrecorded/deferred recording meant the Club should treat 2005 as the operative date | Leanders argued the Club offered no evidence of deed delivery date; recording occurred much later (2010) and delivery controls conveyance timing | No — evidence about delivery date was too speculative; less than a scintilla established when Don’s liability ceased |
| Whether an unrecorded deed is void as to the Club under Property Code §13.001(a) making recording date controlling for creditors | Club contended the unrecorded deed was void as to it and that notice/recording issues made 2005 the effective date for creditor purposes | Leanders noted the Club had no lien or recorded interest and thus §13.001 does not apply; Club had notice in 2005 so statute would not protect subsequent purchasers without notice | Court held §13.001 inapplicable because the Club was not a creditor with a lien; recording rule did not rescue the Club’s evidentiary failures |
Key Cases Cited
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (legal‑sufficiency standard for reviewing evidence)
- Exxon Corp. v. Emerald Oil & Gas Co., 348 S.W.3d 194 (Tex. 2011) (presence of some evidence defeats directed verdict)
- Jelinek v. Casas, 328 S.W.3d 526 (Tex. 2010) (standards for a “no evidence” challenge)
- Merrell Dow Pharm. v. Havner, 953 S.W.2d 706 (Tex. 1997) (more than a scintilla defined)
- King Ranch, Inc. v. Chapman, 118 S.W.3d 742 (Tex. 2003) (less‑than‑a‑scintilla standard explained)
- Shook v. Walden, 368 S.W.3d 604 (Tex. App.—Austin 2012) (veil‑piercing standards for LLCs)
