2008 St. James Capital Partners, L.P., et al. v. St. James Capital Corp., et al
In the 129th Judicial District Court of Harris County, Texas, Judge Grant Dorfman presiding. Dobrowski LLP successfully defended Charles Underbrink, the principal of the founding general partners of two investment fund limited partnerships. The successor general partner of one of the funds and some of the limited partner investors brought direct and derivative claims against Underbrink and the general partners alleging breach of fiduciary duties, fraud and Texas Securities Act violations related to thirteen separate transactions. The plaintiffs sought $47 million in actual damages, another $12 million in disgorgement, and $60 million in punitive damages. After an 8-week trial, the jury rejected each of the plaintiffs’ claims against the defendants. Instead, the jury found that Underbrink and the general partners fully complied with their fiduciary duties and that each of the thirteen challenged transactions was entirely fair to the limited partners. On Underbrink’s counterclaims, the court ruled as a matter of law during trial that the successor general partner plaintiff had breached the partnership agreement by withholding almost $5 million in distributions from Underbrink and his affiliates. Co-defense counsel: Gibbs & Bruns – Jean Frizzell, Jeff Kubin, Matt Cooper and Jenny Greer.