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