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WILLIS v. DONNELLY

No. 04-0409.

199 S.W.3d 262 (2006)

Michael T. WILLIS, Francie Willis, Urban Retreat of Houston, Inc., and Willis Hite Enterprises, Inc., Petitioners, v. Dan DONNELLY, Respondent.

Supreme Court of Texas.

Decided June 2, 2006.

Rehearing Denied September 22, 2006.

Attorney(s) appearing for the Case

Marie R. Yeates, Harry M. Reasoner, Paul E. Stallings, D. Gibson Walton, Penelope E. Nicholson, Thad T. Dameris, Vinson & Elkins L.L.P., Billy Shepherd, Stephen R. Bailey, Cruse Scott Henderson & Allen, L.L.P., Amir H. Alavi, R. Glen Rigby, Pillsbury Winthrop LLP, Houston, for Petitioners.

Jeffery T. Nobles, Diane M. Guariglia, Allyson L. Mihalick, John K. Broussard Jr., Henry S. Platts, Beirne Maynard & Parsons, L.L.P., William T. Powell, Michael H. Norman, Norman & Powell, Houston, for Respondent.

Justice WILLETT delivered the opinion of the Court.

This dispute centers on whether shareholders in closely held corporations can be held liable to an individual who agreed to a contractual business arrangement with the corporations. We agree with Petitioners Michael and Francie Willis (the Willises) that they cannot be held liable to Respondent Dan Donnelly under breach of contract and breach of fiduciary duty theories. We address other issues as well.

I...

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