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Mark Davis v. Highland Coryell Ranch, LLC
578 S.W.3d 242
Tex. App.
2019
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Background

  • Mark Davis was an original member of Highland Coryell Ranch, LLC who relinquished his membership interest in 2005 and later requested company business records developed while he was a member.
  • Highland produced some records but refused others; Davis sued to inspect the remaining records under the Texas Business Organizations Code.
  • On initial appeal the court remanded because the summary-judgment record lacked Highland’s governing documents; on remand Highland attached those documents and moved for summary judgment again, which the trial court granted.
  • Central statutory provisions: definitions of “member” (§ 1.002(53)(A)) and inspection rights (§§ 101.502, 3.153) in the Texas Business Organizations Code; inspection requires a written request and a "proper purpose."
  • Highland argued a former member has no right to inspect records; Davis argued the statutory definition of “member” (which includes one who "has been admitted as a member") permits former members to inspect for a proper purpose.
  • The Court of Appeals reversed the trial court, holding that the statutory text allows former members to access records for a proper purpose and that Highland had not established entitlement to summary judgment on the limited ground it urged.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the doctrine of law of the case prevented reconsideration of issues previously decided on an incomplete record Davis: prior appellate language meant he was entitled as a matter of law to access records Highland: prior opinion should control and preclude relitigation Court: law of the case did not apply because facts/issues now differ and prior decision could be corrected if wrong; discretion permits reconsideration
Whether a former member may inspect LLC business records under the statute Davis: “has been admitted as a member” includes former members, so ex-members can inspect for a proper purpose Highland: phrase requires continuing membership; former members have no statutory inspection right Court: statute’s phrasing is unambiguous; “has been admitted as a member” includes persons admitted in the past (former members); former members may seek records for a proper purpose, so summary judgment was improper

Key Cases Cited

  • In re Office of the Attorney General, 422 S.W.3d 623 (Tex. 2013) (statutory text controls and courts must give meaning to each word)
  • Briscoe v. Goodmark Corp., 102 S.W.3d 714 (Tex. 2003) (law-of-the-case doctrine is discretionary and may be forgone when earlier decision is clearly wrong)
  • State Farm Lloyds v. Page, 315 S.W.3d 525 (Tex. 2010) (summary judgment cannot be affirmed on a ground not presented to the trial court)
Read the full case

Case Details

Case Name: Mark Davis v. Highland Coryell Ranch, LLC
Court Name: Court of Appeals of Texas
Date Published: Jun 18, 2019
Citation: 578 S.W.3d 242
Docket Number: 07-18-00185-CV
Court Abbreviation: Tex. App.