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Kenneth L. Haedge, Dale C. Tippit, Denver Tippit, Case S. Jones and Clinton H. Shed v. Central Texas Cattlemen's Association
07-15-00368-CV
| Tex. App. | Oct 11, 2016
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Background

  • CTCA governance and membership arise from a leased cattle-grazing arrangement on Fort Hood land; CTCA membership gives the right to graze cattle and is governed by bylaws and resolutions.
  • The Army allows grazing but restricts access to certain areas, including the PD-94 and Live Fire zones, requiring Range Control permission for pens.
  • In 2014–2015, appellants built pens in restricted areas without Range Control approval, allegedly misleading Range Control and Board members.
  • CTCA’s Board later held a special meeting, cancelled appellants’ shares, and notified members of potential sanctions under bylaws Article XX–XXI.
  • Appellants sued CTCA and Board members for fraud, conversion, breach of contract, and defamation; CTCA moved for summary judgment arguing judicial non-intervention limited the court to due-process review only.
  • The trial court granted summary judgment, and after a bench trial on due process, affirmed dismissal, with appellants challenging the jury-trial right and the application of judicial non-intervention.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is the doctrine of judicial non-intervention applicable to limit review? Non-intervention should not bar factual review on due process. Non-intervention applies; internal CTCA decisions are insulated from court review. Yes, doctrine applied to limit review to due-process inquiry.
Did appellants have a right to a jury trial on due-process issues? Jury needed on key due-process factual questions. Due-process issues are questions of law on undisputed facts. No; due-process issue decided as a matter of law.
Was there minimal due process in canceling shares? Process violated notice/hearing requirements. Notice and hearing under CTCA bylaws were provided. Appellants received minimal due process; cancellation upheld.
Should claims against individual Board members have been reviewed as personal liability? Board members acted against CTCA interests for personal gain. Board actions were corporate acts; no personal liability shown. No personal liability; non-intervention applied to individual-board actions.

Key Cases Cited

  • Hatley v. Am. Quarter Horse Ass'n, 552 F.2d 646 (5th Cir. 1977) (due process required in internal association matters when essential rights exist)
  • Sweatt v. Masonic Grand Chapter of Order of Eastern Star, 329 S.W.2d 334 (Tex. Civ. App. — Fort Worth 1959) (intervention when public policy or rights at stake)
  • Price v. Dallas Cty. Med. Soc’y & State Med. Ass’n, 108 S.W.2d 241 (Tex. Civ. App. — Dallas 1937) (exception to non-intervention for due-process concerns)
  • Harden v. Colonial Country Club, 634 S.W.2d 56 (Tex. App. — Fort Worth 1982) (non-intervention doctrine recognized in Texas practice)
  • Stevens v. Anatolian Shepherd Dog Club of Am., Inc., 231 S.W.3d 71 (Tex. App. — Houston 14th Dist. 2007) (discusses standard and policy considerations in non-intervention)
  • Granek v. Tex. State Bd. of Med. Exam’rs, 172 S.W.3d 761 (Tex. App. — Austin 2005) (due-process inquiry in administrative-review context)
Read the full case

Case Details

Case Name: Kenneth L. Haedge, Dale C. Tippit, Denver Tippit, Case S. Jones and Clinton H. Shed v. Central Texas Cattlemen's Association
Court Name: Court of Appeals of Texas
Date Published: Oct 11, 2016
Docket Number: 07-15-00368-CV
Court Abbreviation: Tex. App.