Opinion ID: 6691
Heading Depth: 3
Heading Rank: 2

Heading: Indemnification of Ortiz's Officers

Text: 23 Ortiz's other alleged injury is similarly speculative and remote. Ortiz claims injury as a consequence of the court's rankings because the company's federal tax debt was not reduced by the amount in the Fund, given the court's assignment of the lowest priority to the IRS. Ortiz does not dispute the existence or amount of its debt to the IRS. Rather, Ortiz merely complains that, should the IRS ever look past the company to its officers for satisfaction of this tax debt, then these officers will be liable for a larger amount; and, as Ortiz posits that Texas law requires it to indemnify its officers under such circumstances, the company will ultimately have to pay more in indemnification. 24 First, Ortiz misstates Texas law: Corporations are not required to indemnify officers from such liability--they are merely permitted to do so. 23 As Ortiz has not alleged that it took the steps necessary to indemnify its officers, the record is devoid of facts showing that the company would be legally responsible to indemnify its officers for any ultimate liability they incur for the corporation's tax debts. 24 25 Second, as with its allegations of liability in bankruptcy, even if we assume arguendo that Ortiz would owe indemnity to its officers, its argument is completely speculative. Ortiz presents no evidence that the IRS has looked, anticipates looking, or even could look to the corporation's officers to satisfy Ortiz's tax debt. 25 In short, Ortiz has failed utterly to demonstrate that any action by the IRS against company officers is a real or immediate likelihood or how such an action would adversely affect the company in the least. Finally, we must note that Ortiz's concern regarding indemnification rings hollow when even this remote possibility of indemnification could not arise unless the company should fail to pay its own tax debt in the first place. 26 III