Obtained summary judgment on behalf of a client who was sued under a theory of promoter liability for entering into a business transaction before his company was formed. The other party involved in the business transaction attempted to hold my client personally liable for a promissory note because my client did not create the company named in the promissory note prior to executing the note. Generally, under Texas law, promoters can be held personally liable for executing documents if the company has not yet been formed; however, we were able to establish one of the recognized exceptions to promoter liability under Texas law. Based upon this exception, the court dismissed my client from the lawsuit.
