The week-long trial in the Boerne courthouse presented a dispute by a limited partner, Lori Hagee, who brought fiduciary duty claims against the limited partnership, the general partner, and Scott Felder, who was also a limited partner and the sole director of the GP. PHMY’s Kevin Young represented the limited partnership and the general partner. The focus of the suit was whether the general partner breached duties to the limited partnership or its limited partners by selling partnership property in order to satisfy the partnership’s debt obligations.
After four days of testimony, the jury agreed that Scott Felder, as the sole director managing the GP, complied with all fiduciary duties owed to Hagee when he sold the partnership property at market value in order to pay partnership debts. In fact, the jury found Hagee’s Serengeti Resort liable for trespassing on the partnership’s property and awarded trespass damages and attorneys fees to PHMY’s client. The jury denied Hagee any and all of the millions of dollars in property, fee forfeiture, punitive damages, and attorneys fees that she sought against PHMY’s client.