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Raytheon Company v. Boccard USA Corporation
369 S.W.3d 626
Tex. App.
2012
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Background

  • Boccard sued Raytheon to hold Raytheon liable for United Engineers’ breach of contract under an alter ego theory.
  • A jury found United Engineers breached the contract and that Boccard’s alter ego claim against Raytheon was supported.
  • Raytheon argued Boccard lacked standing because the alter ego claim belonged to the bankruptcy estate.
  • Washington Group International (“Washington Group”) became debtor-in-possession after a bankruptcy filing involving United Engineers and affiliates.
  • A bankruptcy trustee/debtor-in-possession has exclusive standing to prosecute estate causes of action, including alter ego claims.
  • Court held Boccard lacked standing; vacated judgment and dismissed the case.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Standing to pursue alter ego claim Boccard contends it may pursue the alter ego claim. Raytheon argues only the bankruptcy trustee/debtor-in-possession has standing. Boccard lacked standing; the trial court lacked jurisdiction.

Key Cases Cited

  • Patterson v. Planned Parenthood, 971 S.W.2d 439 (Tex. 1998) (standing as a jurisdictional issue)
  • Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440 (Tex. 1993) (standing cannot be waived; review de novo)
  • In re Educators Group Health Trust, 25 F.3d 1281 (5th Cir. 1994) (estate causes of action belong to the estate; trustee has standing)
  • Tow v. Pagano, 312 S.W.3d 751 (Tex. App.—Houston [1st Dist.] 2009) (trustee exclusive standing to estate actions)
  • Highland Capital Mgmt., L.P. v. Ryder Scott Co., 212 S.W.3d 522 (Tex. App.—Houston [1st Dist.] 2006) (standing as to estate claims)
Read the full case

Case Details

Case Name: Raytheon Company v. Boccard USA Corporation
Court Name: Court of Appeals of Texas
Date Published: May 10, 2012
Citation: 369 S.W.3d 626
Docket Number: 01-10-00950-CV
Court Abbreviation: Tex. App.