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BJVSD Bird Family Partnership L.P. v. Star Electricity, L.L.C. D/B/A Startex Power

Citations: 413 S.W.3d 780; 2013 WL 4080723; 2013 Tex. App. LEXIS 10088Docket: 01-11-00470-CV

Court: Court of Appeals of Texas; August 13, 2013; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case before the Texas Court of Appeals involves BJVSD Bird Family Partnership, L.P. (Appellant) and Star Electricity, L.L.C. d/b/a StarTex Power (Appellee). BJVSD appealed post-judgment decisions related to the severance of Triton 88 from a breach of contract case and the modification of a receiver's appointment. Triton 88 and Triton 2000 were initially sued by StarTex, resulting in a judgment of over $300,000. Following bankruptcy filings by both Triton entities, BJVSD sought to intervene, claiming a lack of notice and to protect its interests. However, StarTex contested BJVSD's standing to appeal, arguing it was neither a party to the judgment nor the orders. The court agreed, determining BJVSD lacked standing under the virtual representation doctrine as it was not bound by the judgment and had no sufficient identity of interest with the judgment debtors. BJVSD's post-judgment intervention was also deemed untimely. The court emphasized that as a limited partner and LLC member, BJVSD was not liable for the entities' debts under Texas law. Consequently, the appeal was dismissed for lack of jurisdiction due to BJVSD's inability to challenge the orders affecting Triton 88 and Triton 2000 directly.

Legal Issues Addressed

Corporate Injury and Shareholder Rights

Application: The court found that BJVSD, as a limited partner, could not personally recover for injuries done to the partnership, aligning with case law that corporate injuries are vested in the corporation, not its shareholders.

Reasoning: Relevant case law confirms that a limited partner lacks standing to sue for partnership injuries and that corporate injuries are vested in the corporation, not its shareholders.

Limited Partner and LLC Member Liability

Application: Under Texas law, BJVSD, as a limited partner and LLC member, was not liable for the debts of Triton 88 and Triton 2000 and thus not bound by the judgment against these entities.

Reasoning: BJVSD is not bound by the judgment against Triton 88 and Triton 2000 due to its status as a limited partner and member of limited liability companies (LLCs).

Post-Judgment Intervention

Application: BJVSD's attempt at post-judgment intervention was deemed improper as it did not argue this issue on appeal, resulting in a waiver of the claim.

Reasoning: StarTex further claimed BJVSD's post-judgment intervention attempt was improper, but BJVSD did not argue this on appeal, leading to a waiver of that claim.

Standing to Appeal

Application: The court concluded that BJVSD lacked standing to appeal as it was neither a party to the underlying judgment nor the subsequent orders, nor was it bound by these judgments as a limited partner.

Reasoning: StarTex contested BJVSD's standing to appeal, asserting that BJVSD was neither a party to the underlying judgment nor the subsequent orders, thus lacking the ability to challenge them.

Virtual Representation Doctrine

Application: BJVSD argued for standing under the virtual representation doctrine, but the court found that it did not meet the criteria since it was not bound by the judgment and had no sufficient identity of interest with the named parties.

Reasoning: BJVSD countered that it had standing under the virtual representation doctrine, which allows entities not named as parties to appeal if they are bound by the judgment and have a sufficient identity of interest with a named party.