BROWNING v. PROSTOK

No. 03-0784.

165 S.W.3d 336 (2005)

Peter C. BROWNING, et al., Petitioners, v. Jeff P. PROSTOK, et al., Respondents.

Supreme Court of Texas.

Decided May 27, 2005.


Attorney(s) appearing for the Case

Boe W. Martin, Dawn Ryan Budner, Sherri Turner Alexander, Rebecca Ann Hicks, Kirk Dailey Dreyer, Bell Nunnally & Martin LLP, Bruce W. Akerly, Bell, Nunnally & Martin L.L.P., Maria Katina Karos, Bell Nunnally & Martin Pllc, Samara L. Kline, Baker Botts L.L.P., Bryant C. Boren Jr., Baker & Botts L.L.P., Dallas, Joe R. Greenhill, Bob Shannon, Baker Botts LLP, Austin, for for petitioners.

Roger Townsend, Jennifer R. Tillison, Alexander Dubose Jones & Townsend, LLP, James R. Moriarty, Patrick Kevin Leyendecker, Moriarty & Leyendecker, Richard Frankel, Stephen M. Hackerman, Hackerman Frankel, Houston, J. Robert Arnett II, Sopuch, Arnett, Higgins & Gaubert, L.L.P., Patrick J. Neligan Jr., Neligan Tarpley Andrews & Foley, L.L.P., Dallas, Craig Howard Averch, White & Case LLP, Los Angeles, CA, William Powers Jr., Austin, for respondents.

Michael P. Lynn, Russell James DePalma, Lynn Tillotson & Pinker, LLP, Basheer Youssef Ghorayeb, Rodriguez Law Firm, P.C., Dallas, Susanna J. Gray, Fried Frank Harris Shriver & Jacobson, New York, NY, for TCW Asset Management Company, TCW Group Inc., TCW Special Credits, Trust Company of the West

Thomas M. Fulkerson, Clements O'Neill Pierce Wilson & Fulkerson, Houston, for NGC Asbestos Disease and Property Damage Trust.

C. Rodney Acker, Ellen Bush Sessions, Jenkens & Gilchrist, P.C., Dallas, for Donaldson, Lufkin & Jenrette Securites Corp.

Kathy D. Patrick, Andrew L. Pickens, Jeffry Joe Cotner, Jeffrey C. Kubin, Gibbs & Bruns, L.L.P., Houston, for Fidelity Management & Research Company.

William D. Sims Jr., Michael Lawrence Raiff, Vinson & Elkins, L.L.P., Dallas, for Water Street Corporation Recovery Fund I, L.P.

Marvin S. Sloman, James A. Ellis Jr., Stephen A. Goodwin, Carrington Coleman Sloman & Blumenthal, L.L.P., Dallas, Sheldon Raab, Barry Sher, John Dellaportas, Fried Frank Harris Shriver & Jacobson, New York, NY, for Houlihan Lokey Howard & Zukin Capital.


Justice WAINWRIGHT delivered the opinion of the Court.

This dispute arises out of highly contentious bankruptcy proceedings. During the bankruptcy proceedings, a committee representing bond and trade unsecured creditors vigorously disputed the valuation of the debtor as presented by the debtor's management. The committee sought to replace the debtor's management with a bankruptcy trustee, based in part on allegations of intentional undervaluation of the debtor. In...

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