David Fowler Johnson, in his Texas Fiduciary Litigator Blog, has made available for download his article, titled “Court Holds That Promissory Note Did Not Allow Partial Conversion To Equity,” which discusses Hotze v. In Mgmt., LLC . The abstract of the article is as follows:
In Hotze v. In Mgmt., LLC, family members sued each other over control of a family business. No. 14-18-00995-CV, 2021 Tex. App. LEXIS 5821 (Tex. App.—Houston [14th Dist.] July 22, 2021, no pet. history). Three of the brothers ended up with greatly increased control of the company after debt the company owed to a partnership formed by the three brothers was partially converted into company stock. Id. Two other brothers and other associated parties filed two lawsuits, bringing both individual and derivative claims, which were consolidated for trial. “A key issue in the case was whether the promissory note between Troika and CECO authorized a partial conversion of debt for stock.” Id. The trial court concluded that it did, and instructed the jury to that effect. The two brothers appealed.
To see the full article, click: ” Court Holds That Promissory Note Did Not Allow Partial Conversion To Equity “
Posted by Isabella King, Associate Editor, Wealth Strategies Journal.