McGinnis Lochridge Achieves Major Victory in $5.9 Million Fiduciary Duty Case

McGinnis Lochridge's Landmark Victory in Fiduciary Duty Case

On April 11, 2025, the legal team at McGinnis Lochridge, led by attorneys Jonathan Baughman and William Grubb, achieved a significant victory in a complex fiduciary duty case, culminating in a jury verdict of $5.9 million. This ruling was handed down by a jury in Harris County, Texas, following a riveting four-day trial in the 129th District Court.

The case revolved around a disputed transfer of 45 acres of land near Seabrook, Texas. The plaintiffs, shareholders of a closely held corporation, accused corporate officers of self-dealing. The jury’s verdict included a hefty award of $5.7 million for breaches of fiduciary duty, alongside $234,000 for fraud.

Baughman, who also chairs the firm’s Oil and Gas Practice Group, remarked on the jury's engagement during the trial, stating, "The jury was focused and engaged. They saw through the complexity to deliver justice." This sentiment reflects the intricate nature of the case, which required keen legal acumen to navigate its challenges.

The successes of this case are attributed not only to the efforts of Baughman and Grubb but also to the collaborative approach within McGinnis Lochridge. Grubb emphasized the importance of teamwork, crediting their support staff for playing a critical role in the trial’s success. "Helping an individual shareholder stand up to corporate misconduct was important. Our client trusted us, and we delivered," he noted, adding that the contributions of colleagues like Michael Kabat and Nicholas Bruno were pivotal in bringing their case to fruition.

The implications of this verdict extend beyond just financial compensation. It signifies a strong stance against corporate misconduct, reinforcing the fiduciary responsibilities that officers owe to their shareholders. The ruling sends a clear message that the legal system will hold individuals accountable for unethical practices that harm the interests of shareholders.

McGinnis Lochridge has been a staple in Texas legal circles for almost a century, providing comprehensive services in areas such as business law, energy, real estate, and more. Their commitment to justice and advocacy for their clients stands at the forefront of their ethos.

The firm operates out of several locations across Texas, including Austin, Houston, Dallas, and Decatur, and boasts a legacy of excellence recognized by top legal rankings from Chambers USA and others. They pride themselves on delivering tailored legal solutions that address the unique needs of their clients across various sectors.

In conclusion, the recent $5.9 million jury verdict achieved by McGinnis Lochridge not only highlights their expertise in complex legal matters but also reinforces the importance of corporate accountability. As corporate governance continues to be a significant issue in today's business environment, this case serves as a reminder of the vital role that diligent legal representation plays in ensuring that justice is served and shareholder rights are protected.

For more information about McGinnis Lochridge and their wide-ranging legal services, please visit www.mcginnislaw.com.