Opinion ID: 1788581
Heading Depth: 1
Heading Rank: 4

Heading: The Failed Buy Out

Text: McLaughlin did not learn about the P & C Agreement or its related transactions until after the fact. Nevertheless, McLaughlin continued his work with First Texas in developing the EBT business. Also, McLaughlin and First Texas immediately began negotiations for a buy out of McLaughlin's unmatured purchase option. In December 1988, McLaughlin and First Texas agreed on a $1 million price for a buy out of the purchase option. Meanwhile, the Federal Home Loan Bank Board (FHLBB) placed First Texas under a supervisory agreement, requiring federal regulator approval of its buy-out agreement with McLaughlin. Before the federal regulator approved the buy-out agreement, FHLBB placed First Texas into receivership. In May 1989, the receiver, Federal Savings & Loan Insurance Corporation (FSLIC), repudiated the McLaughlin Agreement under 12 U.S.C. § 1821(e)(1). Consequently, the entire McLaughlin Agreement, including the $1 million buy-out agreement, became void. McLaughlin did not contest the FSLIC's repudiation. However, in 1990, McLaughlin brought suit against ACS.
McLaughlin sued ACS, ACSFS, TransFirst, Deason and Kosberg, alleging tortious interference with a contract, conspiracy to tortiously interfere with a contract, breach of contract, fraud, and unjust enrichment. McLaughlin also sued for a declaratory judgment for an equitable lien, arising from the unmatured purchase option, on ACS. The trial court granted ACS's motion for summary judgment against McLaughlin's contract, fraud, unjust enrichment and declaratory judgment actions. The parties tried the tortious interference claims to a jury. The jury found that each defendant had interfered with and engaged in conspiracy to interfere with the McLaughlin Agreement. The trial court rendered judgment on the jury's verdict awarding McLaughlin $3 million in actual damages, $1.5 million in exemplary damages, and prejudgment interest of about $1.5 million. The court of appeals affirmed the trial court's judgment. [3]