No Shield

August 25, 2024

In Feeney v. Morfin Capital Group, the Fifth Court considered whether the fiduciary-shield doctrine could protect a corporate officer from personal jurisdiction in Texas. The officer, at the time CEO of One Health Medical Systems, was alleged to have traveled to Texas to negotiate the purchase of MedOne’s assets. During these meetings, Feeney and other defendants allegedly made false representations about One Health’s financial capability to complete the transaction, inducing MedOne to enter the asset purchase agreement.

The Court found that the officer’s actions, which included making specific fraudulent statements during face-to-face meetings in Texas, were sufficient to establish personal jurisdiction. The fiduciary-shield doctrine does not apply when an officer is alleged to have personally committed a tort. No. 05-22-01375-CV, August 21, 2024 (mem. op.).