A Landmark Verdict

The Woodlands: Hopkins | Centrich Law’s statement on the anniversary of the landmark jury verdict in L&S Pro-Line, LLC v. Garrett Gagliano, Snook Holdings, LLC, Tactical Automation, Inc.¹ Hopkins | Centrich Law is a prominent Montgomery County law firm committed to protecting the rights of minority shareholders in closely held companies of all sizes across Texas .

A Landmark Verdict

Hopkins | Centrich Law managing member Kirby D. Hopkins and senior associate Alexis L. Espejel were co-counsel in L&S Pro-Line, LLC v. Garrett Gagliano, Snook Holdings, LLC, Tactical Automation, Inc., a case that resulted in likely the largest award for a business case in Montgomery County history - $32+ million for Gagliano (a soon-to-be-announced top 20 verdict in Texas in 2021).

A complex matter that began in 2018 as what appeared to be a normal business dispute widened until it spanned virtually the full breadth of business law.

Garrett Gagliano was a minority shareholder (25%) and chief financial officer /treasurer of L&S Pro-Line for the past two years when he noticed “questionable behavior” by majority owner Lee Burkett. Gagliano thought Burkett was “bribing potential customer and engaging in illegal employment practices.”

When Gagliano brought those issues, and others, to Burkett’s attention their relationship rapidly disintegrated until an August morning when Gagliano tried to enter the office and Burkett (caught on video) physically stopped him.

Gagliano left the office and never returned. Gagliano owned the property L&S was operating on and eventually told Burkett to leave. Burkett responded by suing Gagliano.

Gagliano counter- sued. His claims were a virtual textbook of corporate malfeasance: breach of fiduciary duty, breach of contract, non-payment of salary, along with elements of a shareholder derivative action.

L&S v. Gagliano was an in-depth illustration of the complexities of Texas shareholder oppression laws.

After eight days in trial, on April 20, 2021, the jury unanimously found against L&S and Burkett, and for Gagliano by awarding actual and exemplary damages for malice, gross negligence, and intentional self-enrichment by Burkett. Judge Vince Santini entered the final judgment on May 24, 2021, now on appeal.

L&S v. Gagliano is an ideal example of attorneys across Texas working as a team – delving into contract, corporate, business, employment, and shareholder derivative laws.

L&S v. Gagliano stands as a reminder to business owners that their fiduciary duties to their companies and minority shareholders are to be taken extremely seriously.

Hopkins | Centrich Law (including essential staff members Sarah Price, Shelley Barnett, Madison Hubbs, and Chrissy Dugan) was honored to have been part of the team led by Corey Wehmeyer and John Ellis (both Board Certified in Oil, Gas, and Mineral Law) of Santoyo Wehmeyer PC | Energy Attorneys out of San Antonio.