Shareholder Oppression to the Supreme Court

The Dallas Court of Appeals’ recent series of shareholder oppression cases is making its way to the Texas Supreme Court.  Today’s list of petitions granted included Ritchie v. Rupe, in which the Dallas Court of Appeals held that held a minority shareholder who had sought to leave the company was entitled to “fair market value” for her shares, including “discounts for lack of marketability and for the [s]tock’s minority position.“  That holding was quite different than the subsequent opinion in Cardiac Perfusion Services, Inc. v. Hughes, in which the court of appeals held that the minority shareholder was entitled to a “fair value” buyout, with no discounts, because the shareholder was being forced out of the company.

You can find links to the parties’ briefs in the Ritchie case here.  Oral argument is set for February 26.  In the meantime, the motion for rehearing at the court of appeals is still pending in the Cardiac Perfusion case.