Court Opinion

ID: 4072335
Source: CourtListenerOpinion
Date Created: 2016-09-30 02:49:17.199096+00
Date Added: 2024-06-11T14:32:24.023049
License: Public Domain

ACCEPTED
                                                                                        13-15-00452-CV
                                                                        THIRTEENTH COURT OF APPEALS
                                                                               CORPUS CHRISTI, TEXAS
                                                                                  12/10/2015 2:49:53 PM
                                                                                       Dorian E. Ramirez
                                                                                                  CLERK

                               NO. 13-15-00452-CV

                  IN THE THIRTEENTH COURT OF APPEALS FILED IN
                                              13th COURT OF APPEALS
                    CORPUS CHRISTI—EDINBURG, TEXAS
                                           CORPUS  CHRISTI/EDINBURG, TEXAS
                                                       12/10/2015 2:49:53 PM
                                                         DORIAN E. RAMIREZ
                                 SANDEEP PATEL,                 Clerk
                                                   Appellant,
                                        v.

     HARBOR HOSPICE OF BEAUMONT, L.P., HARBOR HOSPICE MANAGER, L.L.C.,
               QAMAR ARFEEN, AND ARFEEN PROPERTIES, L.P.,
                                              Appellees.

                  ON APPEAL FROM THE 172nd DISTRICT COURT,
                   JEFFERSON COUNTY, TEXAS, NO. E-192,576

                              APPELLEES’ BRIEF

      Glen W. Morgan                 David Gaultney             Brandy Wingate Voss
  State Bar No. 14438900         State Bar No. 07765300        State Bar No. 24037046
gmorgan@rmqlawfirm.com      davidgaultney@mehaffyweber.com    brandy@appealsplus.com
        John Werner                   Elana Einhorn           Smith Law Group LLLP
  State Bar No. 00789720         State Bar No. 06502455        820 E. Hackberry Ave.
 jwerner@rmqlawfirm.com     elanaeinhorn@mehaffyweber.com      McAllen, Texas 78503
  Reaud, Morgan & Quinn            MehaffyWeber, P.C.              (956) 683-6330
       801 Laurel St.        823 Congress Avenue, Suite 200      (956) 225-0406 Fax
   Post Office Box 26005           Austin, Texas 78701
  Beaumont, Texas 77720              (512) 394-3840
      (409) 838-1000.              (512) 394-3860 Fax
    (409) 833-8236 Fax

                           ATTORNEYS FOR APPELLEES

                      ORAL ARGUMENT REQUESTED
                  IDENTITY OF PARTIES AND COUNSEL
Appellant: Sandeep Patel

Represented by:

Chris Portner
State Bar No. 24007858
cportner@portnerbond.com
J. Trenton Bond
State Bar No. 00785707
tbond@portnerbond.com
Portner Bond, PLLC
1905 Calder Avenue
Beaumont, Texas 77701
Phone: (409) 838-4444
Fax: (409) 554-0240

Anthony Malley, III
State Bar No. 24041382
tony@mallaw.com
Malley Law Firm, PLLC
905 Orleans, Suite 110
Beaumont, Texas 77701
Phone: (409) 212-8888
Fax: (409) 212-8002

Jamie D. Matuska
State BarNo. 24051062
jamie@matuskalaw.com
Matuska Law Firm
2809 Highway 69 North
Nederland, Texas 77627
Phone: (409) 722-5600
Fax: (409) 727-1290

                                 ii
Appellees: Harbor Hospice of Beaumont, L.P., Harbor Hospice Manager, L.L.C.,
Qamar Arfeen, and Arfeen Properties, L.P.

Represented by:

David Gaultney                             David E. Bernsen
State Bar No. 07765300                     State Bar No. 02217500
davidgaultney@mehaffyweber.com             dbernsen@bernsenlaw.com
Elana Einhorn                              Christine L. Stetson
State Bar No. 06502455                     State Bar No. 00785047
elanaeinhorn@mehaffyweber.com              cstetson@bernsenlaw.com
MehaffyWeber, P.C.                         420 North MLK, Jr. Pkwy
823 Congress Avenue, Suite 200             Beaumont, Texas 77701
Austin, Texas 78701                        Phone: (409) 212-9994
Phone: (512) 394-3840                      Fax: (409)212-9411
Fax: (512) 394-3860
                                           Brandy Wingate Voss
Jeremy Stone                               State Bar No. 24037046
State Bar No. 24013577                     brandy@appealsplus.com
jeremystone@mehaffyweber.com               Smith Law Group LLLP
MehaffyWeber, P.C.                         820 E. Hackberry Ave.
500 Dallas, Suite 1200                     McAllen, Texas 78503
Houston, Texas 77002                       Phone: (956) 683-6330
Phone: (713) 655-1200                      Fax: (956) 225-0406
Fax: (713) 655-0222

Glen W. Morgan
State Bar No. 14438900
gmorgan@rmqlawfirm.com
John Werner
State Bar No. 00789720
jwerner@rmqlawfirm.com
Reaud, Morgan & Quinn
801 Laurel St.
Post Office Box 26005
Beaumont, Texas 77720-6005
Phone: (409) 838-1000
Fax: (409)833-8236

                                     iii
                                          TABLE OF CONTENTS

Identity of Parties and Counsel ................................................................................. ii 

Table of Contents ..................................................................................................... iv 

Index of Authorities ................................................................................................. vi 

Statement of the Case.................................................................................................x 

Request for Oral Argument ...................................................................................... xi 

Issues Presented ...................................................................................................... xii 

Statement of Facts ......................................................................................................1 

Summary of the Argument.........................................................................................5 

Argument....................................................................................................................6 

         I.        All of Patel’s claims are barred by limitations. ..................................... 6 

                   A.       Patel’s claims accrued by March 10, 2008. ................................6 

                   B.       Neither the discovery rule nor fraudulent
                            concealment delays accrual or tolls
                            limitations here. ...........................................................................9 

                            1.        The discovery rule does not apply
                                      because the alleged injury was not of
                                      the limited type that is inherently
                                      undiscoverable. .................................................................9 

                            2.        The fraudulent concealment doctrine
                                      does not apply because the
                                      Partnership did not try to conceal
                                      termination of Patel’s interests and
                                      Patel had notice of facts giving rise to
                                      his claims by March 2008...............................................13 

                            3.        The presence of fiduciary duties does
                                      not relieve Patel of his own obligation
                                      of diligent inquiry. ..........................................................14 

                                                             iv
                             4.        The same statute of limitations applies
                                       to Patel’s declaratory-judgment claim
                                       as to his substantive claims. ............................................15 

         II.       Defendants conclusively negated at least one element of
                   each of Patel’s claims. ......................................................................... 17 

                   A.        Patel has no breach-of-fiduciary-duty claim.............................17 

                   B.        There is no genuine issue of material fact as
                             to breach of contract..................................................................21 

                   C.        There is no genuine issue of material fact as
                             to conversion and theft. .............................................................23 

         III.      There is no fact question as to damages. ............................................. 24 

         IV.       The summary judgment evidence was properly
                   considered by the trial court. ............................................................... 26 

Prayer .......................................................................................................................28 

Certificate of Compliance ........................................................................................30 

Certificate of Service ...............................................................................................31 

Index to Appendix ....................................................................................................32 

                                                               v
                                      INDEX OF AUTHORITIES

Cases 

Alan Reuber Chevrolet, Inc. v. Grady Chevrolet, Ltd.,
      287 S.W.3d 877 (Tex. App.—Dallas 2009, no pet.) .....................................23

B&W Supply, Inc. v. Beckman,
    305 S.W.3d 10 (Tex. App.—Houston [1st Dist.] 2008, pet.
    denied) ...........................................................................................................21

Bandy v. First State Bank,
     835 S.W.2d 609 (Tex. 1992) .........................................................................24

Bohatch v. Butler & Binion,
     977 S.W.2d 543 (Tex. 1996) ................................................ 14, 17, 18, 19, 20

Bokor v. State,
      114 S.W.3d 558 (Tex. App.—Fort Worth 2002, no pet.) .............................24

Brosseau v. Ranzau,
      81 S.W.3d 384 (Tex. App.—Beaumont 2002, pet. denied) ..........................19

City of Houston v. Clear Creek Basin Auth.,
       589 S.W.2d 671 (Tex. 1979) .........................................................................28

Computer Assocs. Int’l., Inc., v. Altai, Inc.,
    918 S.W.2d 453 (Tex. 1994) ...........................................................................9

Cosgrove v. Cade,
     468 S.W.3d 32 (Tex. 2015) ...........................................................................14

Cotton v Cotton,
      169 S.W.3d 824 (Tex. App.—Dallas 2005, pet. denied) ..............................27

Douglas v. Aztec Petroleum Corp.,
     695 S.W.2d 312 (Tex. App.—Tyler 1985, no writ) ......................................17

Exxon Corp. v. Emerald Oil & Gas Co. L.C.,
     348 S.W.3d 194 (Tex. 2011) ...........................................................................7

Graham Mortg. Corp. v. Hall,
     307 S.W.3d 472 (Tex. App.—Dallas 2010, no pet.) .....................................17

                                                           vi
Green Int’l v. Solis,
     951 S.W.2d 384 (Tex. 1997) .........................................................................23

Guidry v. Wells, No.
     09-05-00182-CV, 2006 WL 246493 (Tex. App.—Beaumont
     2006, no pet.) (mem. op.) ..............................................................................27

Hooks v. Samson Lone Star, Ltd. P’Ship,
     457 S.W.3d 52 (Tex. 2015) .................................................................... 13, 14

In re Estate of Denman,
       362 S.W.3d 134 (Tex. App.—San Antonio 2011, pet. denied) ....................16

J.M. Davidson, Inc. v. Webster,
      128 S.W.3d 223 (Tex. 2003) .........................................................................12

LG Ins. Mgmt. Servs., LP v. Leick,
      378 S.W.3d 632 (Tex. App.—Dallas 2012, pet. denied) ..............................18

Luna v. Runyon,
      No. 03-06-00615-CV, 2008 WL 2609171 (Tex. App.—Austin
      2008, pet. denied) (mem. op.) ..........................................................................9

McConathy v. McConathy,
    869 S.W.2d 341 (Tex. 1994) .........................................................................26

Merriman v. XTO Energy, Inc.,
     407 S.W.3d 244 (Tex. 2013) ...........................................................................6

Mowbray v. Avery,
    76 S.W.3d 663 (Tex. App.—Corpus Christi 2002, pet. denied) ..................27

Nalle Plastics Family L.P. v. Porter, Rogers, Dahlman & Gordon,
      P.C.,
      406 S.W.3d 186 (Tex. App.—Corpus Christi 2013, pet. denied) ...................6

Neely v. Comm’n for Lawyer Discipline,
      302 S.W.3d 331 (Tex. App.—Houston [14th Dist.] 2009, pet.
      denied) .................................................................................................... 26, 28

Pink v. Goodyear Tire & Rubber Co.,
      324 S.W.3d 290 (Tex. App.—Beaumont 2010, writ dism’d) .......................28

                                                          vii
Provident Life & Accident Ins. Co. v. Knott,
      128 S.W.3d 211 (Tex. 2003) ...........................................................................7

Royston, Rayzor, Vickery & Williams, LLP v. Lopez,
      467 S.W.3d 494 (Tex. 2015) .........................................................................12

S.V. v. R.V.,
       933 S.W.2d 1 (Tex. 1996) ...................................................................... 14, 15

Schneider Nat’l Carriers, Inc. v. Bates,
      147 S.W.3d 264 (Tex. 2004) ...........................................................................7

Schrock v. City of Baytown,
      No. 01-13-00618, 2015 WL 1882190 (Tex. App.—Houston [1st
      Dist.] April 23, 2015, no pet.) (mem. op.) .....................................................15

Sci. Spectrum, Inc. v. Martinez,
       941 S.W.2d 910 (Tex. 1997) .................................................................... 6, 17

Shell Oil Co. v. Ross,
      356 S.W.3d 924 (Tex. 2011) .................................................................. 10, 12

Strebel v. Wimberly,
      371 S.W.3d 267 (Tex. App.—Houston [1st Dist.] 2012, pet.
      denied) ...........................................................................................................18

Thomas v. Ray,
     889 S.W.2d 237 (Tex. 1994) .......................................................................8, 9

Valdez v. Hollenbeck,
      465 S.W.3d 217 (Tex. 2015) ............................................................ 6, 7, 9, 13

Via Net v. TIG Ins. Co.,
      211 S.W.3d 310 (Tex. 2006) (per curiam) ....................................................10

Wagner & Brown, Ltd.,
     58 S.W.3d 732 (Tex. 2001) ...........................................................................10

Weaver v. Witt,
     561 S.W.2d 792 (Tex. 1977) .........................................................................13

                                                           viii
Statutes 
TEX. BUS. ORG. CODE ANN. § 152.002........................................................ 18, 21, 22

TEX. BUS. ORG. CODE ANN. § 152.206 ....................................................................20

TEX. BUS. ORG. CODE ANN. § 153.003 ....................................................................22

TEX. BUS. ORG. CODE ANN. § 153.105 ....................................................................21

TEX. CIV. PRAC. & REM. CODE ANN. § 16.003 ........................................................16

TEX. CIV. PRAC. & REM. CODE ANN. § 16.004 ........................................................16

TEX. CIV. PRAC. & REM. CODE ANN. § 134.002 ......................................................24

TEX. CIV. PRAC. & REM. CODE ANN. § 134.003 ......................................................24

Rules 
TEX. R. APP. P. 33.1..................................................................................................28

TEX. R. CIV. P. 166a ................................................................................ 6, 26, 27, 28

                                                          ix
                       STATEMENT OF THE CASE

Nature of the Case:   Claims for breach of contract, breach of fiduciary duty,
                      conversion, theft, and fraud arising out of partnership
                      dispute.

Trial Court:          The Honorable Donald J. Floyd, 172nd District Court,
                      Jefferson County.

Trial Court’s         Summary judgment granted in favor of Defendants on all
Disposition:          claims. CR255.

                                      x
                   REQUEST FOR ORAL ARGUMENT
      Appellees respectfully request the opportunity to present oral argument.

Appellees believe oral argument will assist the Court in resolving the issues

presented.

                                      xi
                           ISSUES PRESENTED

The trial court properly granted summary judgment because:

I.     All of Patel’s claims are barred by a statute of limitations.

II.    Defendants negated at least one element of each of Patel’s claims.

III.   Patel did not sustain any damages.

IV.    The summary judgment evidence was properly before the court.

                                           xii
                               STATEMENT OF FACTS

       Defendant Harbor Hospice of Beaumont, L.P. (the “Partnership”) is a

limited partnership formed in 2005 to build and operate a hospice in Beaumont,

Texas. CR42-43. Defendant Harbor Hospice Managers, L.L.C., was the general

partner. CR73. The limited partners included Defendant Arfeen Properties, L.P.

(Defendant Dr. Qamar Arfeen was its general partner), and Plaintiff Sandeep Patel.

CR74,79.

       Patel, an engineer, did not contribute any money to the Partnership; instead

he was granted a 3% ownership interest in exchange for overseeing construction of

the hospice. CR92-93,110-11.1 Midway through construction, however, Patel

demanded that his interest in the Partnership be doubled, and he threatened to walk

off the job if his demand was not met. CR 107,116. Given the circumstances, the

Partnership reluctantly agreed to his demand. Id.

       Because of faulty construction and use of subcontractors who were not

specialized in building medical facilities, the hospice did not pass state inspection.

CR 110-12,114-15. Patel then promptly disappeared. CR105-07. This forced the

Partnership to obtain substitute contractors at additional expense. CR107,118-19.

Patel never responded to the Defendants’ numerous attempts to contact him.
1
  The parties attached color-highlighted deposition testimony as exhibits to the motion for
summary judgment and response. As it appears in the clerk’s record, however, that highlighted
testimony may be difficult to read. The parties therefore provided accurate color copies of that
highlighted deposition testimony in their stipulation filed with this Court on November 24, 2015.
CR105,107. Dr. Arfeen testified that “before the facility was finished or could pass

the Life Safety Code, he would not answer my calls.” CR105. “He just totally

disappeared from the scene.” CR107.

        Patel also failed to respond to requests for updated financial information

from the bank financing the construction. Patel was a guarantor on the construction

loan for the hospice, CR101-03, and the bank requested updated financial

information as the loan approached maturity. App’x Tab A (CR121; Supp.CR102-

06).2

        Because Patel ignored the bank’s requests, on March 4, 2008, the

Partnership’s general counsel sent a letter to Patel informing him that the bank was

once again requesting updated financial information from him as the loan was

about to mature. Id. The letter, sent by certified and regular mail, stated that the

bank had tried several times to get the information from him, yet he had refused to

provide the information or return phone calls. Id. The letter further told Patel that if

he failed to provide the information to the bank by March 10, 2008, he would “be

in material breach of [his] obligations under the partnership agreement . . . .” Id.

        The letter then spelled out that the effect of this material breach would be

termination of his partnership interest:

2
  As Patel notes, the second page of the letter can be found in the supplemental clerk’s record.
Supp.CR103. Patel testified about the second page of the letter at his deposition. CR95. The text
is not in dispute. See the stipulation filed in this appeal on November 24, 2015.

                                               2
               Please allow this letter to serve as notice that unless you
               remedy this breach and provide updated financials to the
               bank on or before March 10, 2008, the general partner
               shall terminate your interest in Harbor Hospice of
               Beaumont, L.P. and expel you for your continued breach
               of this written obligation. Please further note that if the
               general partner is forced to take action pursuant to
               Section 10.2 of the partnership agreement, you will
               forfeit to the partnership the entire value of your
               partnership interest upon your termination and expulsion.

Id. Patel’s wife signed for the certified letter. CR94. The return receipt is dated

March 29, 2008. CR134. Patel did not submit the required financials, CR106, and

the Partnership was forced to refinance with another bank. CR117.

       Because Patel failed to meet his commitments to the Partnership, his

partnership interest was forfeited under section 10.2 of the Partnership Agreement.

App’x Tab C (CR62); App’x Tab A (Supp.CR103). An amendment to the

Partnership Agreement was executed to document the fact Patel was no longer a

member of the Partnership effective January 1, 2008. CR126-29.3

       Patel’s 2008 IRS schedule K-1 accordingly showed his capital account and

ownership interest as zero. App’x Tab B; CR96,141. Patel admitted that his 2008

tax return included the K-1 showing a zero equity interest in the Partnership.

CR98.
3
  The amendment incorrectly states that Patel's limited partnership interests were redeemed rather
than forfeited, but this mistake is immaterial because Patel had a negative balance in his capital
account at the end of 2007, CR130-33, and under the Partnership Agreement, any redeemed
interest would be equal to the redeemed partner’s capital account. CR57-58. In other words,
there was no value to the partnership interest in a redemption situation.

                                                3
      More than four years after the deadline set in the letter, Patel sued the

Partnership, its general partner (Harbor Hospice Manager, L.L.C.), and two of its

limited partners (Dr. Arfeen and Arfeen Properties, L.P.). His original petition,

filed June 15, 2012, claimed breach of fiduciary duty, conversion, and fraud.

CR5,7. He filed an amended petition on May 20, 2013, dropping the fraud claim

but adding a breach-of-partnership-agreement claim. CR15,16. The Defendants

moved for summary judgment on January 22, 2015. Supp.CR5. On February 26,

2015, Patel amended his petition again to reassert the fraud claim, add a claim

under the Theft Liability Act, and add a request for declaratory judgment and

specific performance. CR19,21,23.

      A little less than a month later, the Defendants filed an amended motion for

summary judgment demonstrating that: (1) statutes of limitations barred all claims;

(2) there was no genuine issue of material fact as to at least one element of each of

the substantive claims; and (3) Patel suffered no damages, a necessary element for

each of his claims. CR26. The trial court granted summary judgment on all claims.

CR255.

                                         4
                       SUMMARY OF THE ARGUMENT

      The Partnership Agreement Patel signed authorized his involuntary

termination, and allowed the general partner to reallocate his interest. Under the

terms of the Agreement, Patel ratified and confirmed the general partner’s actions.

Patel admitted when he filed his tax return for 2008 that his partnership interest

had terminated—he reported a zero ownership interest to the IRS.

      Patel was notified that his interest would be terminated if he did not provide

updated financial information to the bank by March 10, 2008. He did not do so,

and his interest was terminated and reallocated. Those actions were not a breach of

contract, fraud, breach of fiduciary duty, conversion, or theft. They were in fact

what Patel agreed could happen.

      Any claim that the contract was breached, or that the general partner should

not have terminated his interest, should have been brought within four years after

March 10, 2008—the deadline in the letter for him to avoid termination. Any claim

for conversion or theft should have been brought within two years of that date. All

of Patel’s claims are barred by limitations.   Neither   the   discovery   rule   nor

fraudulent concealment delays accrual or tolls limitations in this case.

      Furthermore, Patel suffered no damages. The Partnership Agreement

provides that a limited partner who leaves the partnership leaves with nothing more

than his capital account. The value of Patel’s capital account was never a positive

                                          5
amount while he was a partner, and so he was not entitled to any amount when he

walked away from the partnership.

      There are no genuine issues of material fact, and the Defendants were

entitled to judgment as a matter of law. The trial court’s summary judgment should

be affirmed.

                                  ARGUMENT
      Summary judgments are reviewed de novo. Merriman v. XTO Energy, Inc.,

407 S.W.3d 244, 248 (Tex. 2013); Nalle Plastics Family L.P. v. Porter, Rogers,

Dahlman & Gordon, P.C., 406 S.W.3d 186, 199 (Tex. App.—Corpus Christi 2013,

pet. denied). To be entitled to summary judgment, the movant must establish that

there is no genuine issue as to any material fact, and that the movant is entitled to

judgment as a matter of law. TEX. R. CIV. P. 166a; Nalle Plastics Family L.P., 406

S.W.3d at 199-200. A defendant can meet its summary-judgment burden by

conclusively negating at least one element of each cause of action or conclusively

establishing each element of an affirmative defense. See Sci. Spectrum, Inc. v.

Martinez, 941 S.W.2d 910, 911 (Tex. 1997). Defendants did both here.

I.    All of Patel’s claims are barred by limitations.

      A.       Patel’s claims accrued by March 10, 2008.
      Patel’s claims all arise out of the termination of his partnership interest. The

determination of when those claims accrued, and when the statute of limitations

began to run, is a question of law. See Valdez v. Hollenbeck, 465 S.W.3d 217, 229

                                          6
(Tex. 2015) (“When a cause of action accrues is typically a question of law.”);

Schneider Nat’l Carriers, Inc. v. Bates, 147 S.W.3d 264, 274-75 (Tex. 2004)

(“Accrual of limitations is a question of law for the court.”). To answer that

question, the Court must decide when facts came into existence that authorized

Patel to seek a judicial remedy. See Exxon Corp. v. Emerald Oil & Gas Co. L.C.,

348 S.W.3d 194, 202 (Tex. 2011); Provident Life & Accident Ins. Co. v. Knott, 128
S.W.3d 211, 221 (Tex. 2003). “In most cases, a cause of action accrues when a

wrongful act causes a legal injury, regardless of when the plaintiff learns of that

injury or if all resulting damages have yet to occur.” Knott, 128 S.W.3d at 221.

      Patel’s claims accrued on the March 10, 2008 deadline. In failing to supply

updated financial information by that deadline, he forfeited his partnership interest.

Patel was notified by letter of the deadline and that he would be expelled and his

interest terminated. He was notified that he would “forfeit to the partnership the

entire value of your partnership interest upon your termination and expulsion.”

App’x Tab A (Supp.CR103). On receipt of the letter, Patel was on actual notice of

facts in existence that authorized him “to seek a judicial remedy.” See Knott, 128

S.W.3d at 221.

      Patel claims the letter was only a threat, but the letter was more than that. He

received notice of the reason for the termination of his partnership interest and the

deadline for his compliance. He knew from the letter that he had only until March

                                          7
10, 2008, to act to avoid termination of his partnership interest. App’x Tab A

(Supp.CR103). The Partnership plainly informed him that if he ignored the

deadline his interest would be terminated. His interest was in fact terminated, and

the termination was made effective as of January 1, 2008. But for purpose of the

accrual of his causes of action, by March 10, 2008, facts had come into existence

that permitted him to seek a judicial remedy.

      The March 4, 2008 notice was mailed by regular mail and certified mail.

CR121. When notice is sent to a proper address by regular mail there is a

presumption of receipt that may only be overcome by sworn proof of non-receipt.

See Thomas v. Ray, 889 S.W.2d 237, 238-39 (Tex. 1994). In Thomas, the Court

explained:

             When a letter, properly addressed and postage prepaid, is
             mailed, there exists a presumption that the notice was
             duly received by the addressee. This presumption may be
             rebutted by an offer of proof of nonreceipt. In the
             absence of any proof to the contrary, the presumption has
             the force of a rule of law.

Id. at 238. (internal citations omitted). Moreover, section 13.2 of the Partnership

Agreement provides that notice shall be deemed completed two days after it is

deposited in the United States mail, first class, postage prepaid. CR67.

      Patel testified that the letter was properly addressed to his residence and he

confirmed his wife’s signature on the certified letter. CR94. The fact that Patel did

not personally sign the green card does not rebut the presumption or constitute

                                          8
evidence of non-receipt. See Luna v. Runyon, No. 03-06-00615-CV, 2008 WL
2609171, at * 2 (Tex. App.—Austin 2008, pet. denied) (mem. op.). Patel neither

denied receipt of the copy sent by regular mail nor offered proof of non-receipt.

CR95-96. When he was asked if his wife brought the certified letter to his

attention, he simply stated, “[s]he may have. I just don’t recall." CR95. And he

testified, “Well, I’m not telling you I didn’t read it. I just don’t recall.” Id. Under

the circumstances, the presumption that he received the notice “has the force of a

rule of law.” See Thomas, 889 S.W.2d at 238. His claims accrued and the statute of

limitations began to run when he learned of facts giving rise to his right to seek a

judicial remedy—by March 10, 2008.

      B.     Neither the discovery rule nor fraudulent concealment delays
             accrual or tolls limitations here.
      The Texas Supreme Court has recognized two limited doctrines that in

appropriate circumstances may delay accrual or toll limitations: (1) the discovery

rule, and (2) fraudulent concealment. See Valdez v. Hollenbeck, 465 S.W.3d 217,

229 (Tex. 2015). Contrary to Patel’s argument, neither doctrine applies here.

             1.     The discovery rule does not apply because the alleged injury
                    was not of the limited type that is inherently
                    undiscoverable.
      The discovery rule is a “very limited exception” to statutes of limitations

that applies “in certain limited circumstances.” Computer Assocs. Int’l., Inc., v.

Altai, Inc., 918 S.W.2d 453, 456-57 (Tex. 1994). When it applies, the doctrine

                                          9
“defers the accrual of the cause of action until the injury was or could have

reasonably been discovered.” Shell Oil Co. v. Ross, 356 S.W.3d 924, 929-30 (Tex.

2011). The Supreme Court has limited the discovery rule to “exceptional cases to

avoid defeating the purposes behind the limitations statutes.” Via Net v. TIG Ins.

Co., 211 S.W.3d 310, 313 (Tex. 2006) (per curiam).

      The discovery rule applies “only when the nature of the plaintiff’s injury is

both inherently undiscoverable and objectively verifiable.” Wagner & Brown, Ltd.,

58 S.W.3d 732, 734 (Tex. 2001). The legal question of whether an injury is

inherently undiscoverable “is decided on a categorical rather than a case-specific

basis; the focus is on whether a type of injury rather that a particular injury was

discoverable.” Via Net, 211 S.W.3d at 314. A type of injury is inherently

undiscoverable only if it is by its nature unlikely to be discovered within the statute

of limitations despite due diligence. Id. at 313.

      The loss of an interest in a partnership is not the type or category of injury

that can be described as inherently undiscoverable. The Texas Supreme Court has

explained that breach-of-contract cases to which the discovery rule would apply

“should be rare, as diligent contracting parties should generally discover any

breach during the relatively long four-year limitations period provided for such

claims.” Id. at 315. The exercise of due diligence in this case in responding to the

letter would have provided Patel any information he did not already know. The

                                          10
loss of a partnership interest is not the type or category of injury that is unlikely to

be discovered despite due diligence. Indeed, Patel’s 2008 IRS schedule K-1 and his

non-receipt of K-1 schedules in the subsequent years made the injury not merely

discoverable, but obvious.

       Patel cites section 13.4 of the Partnership Agreement as requiring his

signature on the termination to make it effective. App’x Tab C (CR68).4 And he

cites section 3.4 to the same effect. Id. (CR45).5 But his termination was

involuntary, not voluntary. Section 13.4 begins with the words “Except as

otherwise expressly provided in this Agreement.…” Id. (CR68). Section 10.2

expressly provides for the expulsion of a limited partner and the involuntary

termination of his interest by the general partner. Id. (CR62). And Section 3.4

applies only to “agreed” changes, not involuntary termination. Id. (CR45).

       Section 12.1 expressly provides that each limited partner “authorizes” and

“ratifies and confirms” the actions of the general partner in, among other things,

executing “[a]ll instruments and documents necessary to effectuate or act upon any

reallocation of a defaulting partner’s partnership interest.” Id. (CR66). The contract

does not require Patel’s consent in writing to an involuntary termination. He knew

4
 Section 13.4 provides in part: “Except as otherwise expressly provided in this Agreement, no
modification, waiver or termination of this Agreement, or any part hereof, shall be effective
unless made in writing signed by the party or parties sought to be bound thereby….”
5
  Section 3.4 provides that “Any changes, additions or deletions to the list of GPs or LPs or their
partnership interests made and agreed upon hereafter from that listed on Exhibit ‘A’ shall be
recorded on Exhibit ‘C’ and initialed by all GPs and any LPs whose PI has so changed.”

                                                11
that when he signed the Partnership Agreement. Royston, Rayzor, Vickery &

Williams, LLP v. Lopez, 467 S.W.3d 494, 500 (Tex. 2015) (“[A]bsent fraud,

misrepresentation, or deceit, one who signs a contract is deemed to know and

understand its contents and is bound by its terms.”). He also knew that when he

received the termination letter. Requiring a partner’s consent in writing for an

involuntary termination to be effective would render the section authorizing

involuntary termination meaningless. In construing a written contract, a court

“must examine and consider the entire writing in an effort to harmonize and give

effect to all the provisions of the contract so that none will be rendered

meaningless.” J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 229 (Tex. 2003).

      Furthermore, even when applicable, the discovery rule only tolls accrual

“until the injury was or could have reasonably been discovered.” Shell Oil Co., 356

S.W.3d at 929-30. The “injury was or could have reasonably been discovered” by

the March 10, 2008 deadline. Patel discovered or could have reasonably discovered

then that he failed to meet the deadline, and knew or could have reasonably

discovered the forfeiture of his partnership interest.

      Patel also claims that somehow his interest may not yet have been

terminated. This argument ignores not only the terms of the Agreement but his

own 2008 tax return showing he no longer owned an interest in the Partnership.

App’x Tab B (CR141). The contract authorized the general partner to reallocate his

                                          12
interest, and the Partnership Agreement was amended as permitted by the

Agreement. Nothing about this type of alleged injury brings it within the narrow

orbit of the discovery rule.

             2.     The fraudulent concealment doctrine does not apply
                    because the Partnership did not try to conceal termination
                    of Patel’s interests and Patel had notice of facts giving rise
                    to his claims by March 2008.
      The fraudulent concealment doctrine also does not apply. Fraudulent

concealment tolls limitations until fraud is discovered or should have been

discovered with reasonable diligence. Valdez, 465 S.W.3d at 229. It is an

affirmative defense to the statute of limitations under which the plaintiff has the

burden of proof. See Weaver v. Witt, 561 S.W.2d 792, 793 (Tex. 1977).

      Defendants did not try to conceal the termination of Patel’s interest in the

Partnership. To the contrary, they actually advised him of the occurrence of

forfeiture in the March 4th letter. App’x Tab A (Supp.CR102-06). Patel testified

that he had no reason to believe that the Partnership did not terminate his interest

as provided in the letter. CR96. He filed a K-1 with his tax return showing zero

interest in the Partnership for 2008, and he did not receive any additional K-1

schedules in the following years. CR96-97.

      The Texas Supreme Court has explained that, even in cases of alleged fraud,

in some circumstances a court “can determine as a matter of law that reasonable

diligence would have uncovered the wrong.” Hooks v. Samson Lone Star, Ltd.

                                        13
P’Ship, 457 S.W.3d 52, 58-59 (Tex. 2015); see also Cosgrove v. Cade, 468 S.W.3d
32, 38-39 (Tex. 2015). When there is actual or constructive notice, the accrual of a

fraud claim is not delayed. Cosgrove, 468 S.W.3d at 38-39 (citing Hooks). By

March 2008, Patel was aware that he was being expelled, yet he did not exercise

any right to judicial relief until he filed suit more than four years later on June 15,

2012.

        Nor can Patel create an issue based on the fact that Partnership Amendment

4 was executed twice. Both documents give the effective date of the termination as

January 1, 2008. CR126, CR135. And in filing his 2008 tax return, he reported a

zero interest in the Partnership for 2008. App’x Tab B (CR141).

              3.    The presence of fiduciary duties does not relieve Patel of his
                    own obligation of diligent inquiry.
        Patel is not entitled to special consideration due to any fiduciary duty owed

to him as a limited partner. First, the Texas Supreme Court has explained that

“partners have no obligation to remain partners.” Bohatch v. Butler & Binion, 977
S.W.2d 543, 545 (Tex. 1996). “The fiduciary duty that partners owe one another

does not encompass a duty to remain partners or else answer in tort damages.” Id.

at 546. And second, a fiduciary’s misconduct is only inherently undiscoverable in

situations when the person to whom a fiduciary duty is owed is either unable to

inquire into the fiduciary’s actions or unaware of the need to do so. See S.V. v.

R.V., 933 S.W.2d 1, 8 (Tex. 1996). As the Supreme Court has explained,

                                          14
            [w]hile a person to whom a fiduciary duty is owed is
            relieved of the responsibility of diligent inquiry into the
            fiduciary’s conduct, so long as that relationship exists,
            when the fact of misconduct becomes apparent it can no
            longer be ignored, regardless of the nature of the
            relationship.

Id. Defendants took affirmative steps to put Patel on notice of the impending

expulsion from the Partnership. App’x Tab A (CR121;Supp.CR102-06). Patel

simply chose to ignore his obligations. CR97. Patel was neither unable to inquire

nor unaware of the need to do so. Neither the discovery rule nor the doctrine of

fraudulent concealment applies.

            4.     The same statute of limitations applies to Patel’s
                   declaratory-judgment claim as to his substantive claims.
      Finally, Patel argues that the trial court improperly disposed of his

declaratory-judgment claim. But Defendants moved for summary judgment on all

of his substantive claims, and it was properly granted on all of them. As the First

Court of Appeals has stated, “because claims for declaratory relief necessarily

derive from claims for substantive relief, the statute of limitations for the

underlying action at law is applied to an accompanying action for declaratory

relief.” Schrock v. City of Baytown, No. 01-13-00618, 2015 WL 1882190, at *7

(Tex. App.—Houston [1st Dist.] April 23, 2015, no pet.) (mem. op.). Because all

of Patel’s underlying substantive claims were barred by limitations, the procedural

device and remedy of a declaratory judgment was also properly dismissed. See id.;

                                        15
In re Estate of Denman, 362 S.W.3d 134, 144 (Tex. App.—San Antonio 2011, pet.

denied) (“Because a declaratory judgment action is a procedural device used to

determine substantive rights, to determine the applicable limitations period, we

must look to the legal remedy underlying the cause of action.”).

      Any alleged misconduct was not inherently undiscoverable. Patel was

required to act. Since the termination occurred more than four years before he filed

his original petition, Patel’s claims for breach of partnership agreement, breach of

fiduciary duty, and fraud are barred. See TEX. CIV. PRAC. & REM. CODE ANN. §

16.004(a)(5).

      Patel had two years from accrual to file his claims for conversion and

violation of the Texas Theft Liability Act. See TEX. CIV. PRAC. & REM. CODE ANN.

§ 16.003. He was on notice in March 2008 of his expulsion from the Partnership,

and admits that he received, sometime in 2009, the 2008 K-1 showing a zero

interest in the partnership. CR96. He also admits that he included this K-1 in his

2008 tax return. CR96. Having waited to file suit until June 15, 2012, Patel’s

claims are time-barred, as any claim for an alleged conversion or theft accrued

before June 15, 2010.

      The trial court properly granted summary judgment on all claims based on

the statute of limitations. The judgment should be affirmed.

                                         16
II.     Defendants conclusively negated at least one element of each of Patel’s
        claims.

      A defendant can meet its summary-judgment burden by conclusively negating

at least one element of each of a plaintiff’s claims. See Sci. Spectrum, 941 S.W.2d

at 911. Defendants did that here with respect to each of Patel’s claims, as to

damages on the fraud claim and as to both damages and another element on all

other claims.

        A.    Patel has no breach-of-fiduciary-duty claim.
        Breach of fiduciary duty is a tort. Douglas v. Aztec Petroleum Corp., 695
S.W.2d 312, 318 (Tex. App.—Tyler 1985, no writ). The elements for a breach-of-

fiduciary-duty claim are: (1) plaintiff and defendant had a fiduciary relationship;

(2) defendant breached this duty; (3) this breach resulted in harm to plaintiff or

benefit to defendant. See Graham Mortg. Corp. v. Hall, 307 S.W.3d 472, 479 (Tex.

App.—Dallas 2010, no pet.).

        Harbor Hospice Managers, L.L.C., the general partner of Harbor Hospice of

Beaumont, L.P., terminated Patel’s limited partnership interest in the Partnership.

Patel alleges this termination of his partnership interest was a breach of fiduciary

duty. But the Supreme Court has already determined that, as a matter of law,

“partners have no obligation to remain partners.” Bohatch, 977 S.W.2d at 545. The

fiduciary duty that partners owe each other “does not encompass a duty to remain

                                        17
partners or else answer in tort damages.” Id. at 546.6 Defendants had no fiduciary

duty to remain partners with Patel. See LG Ins. Mgmt. Servs., LP v. Leick, 378
S.W.3d 632, 643 (Tex. App.—Dallas 2012, pet. denied). As a matter of law, Patel

has no breach-of-fiduciary-duty claim based on the termination of his partnership

interest.

       Furthermore, any action taken after termination of Patel’s partnership

interest, for example in transferring his former interest, cannot be a breach of

fiduciary duty either. No fiduciary duty is owed to a former partner after the

partnership interest is terminated. See id.

       Even if a duty were owed, Defendants’ actions were proper as a matter of

law. Defendants’ actions complied with the Partnership Agreement and the statutes

governing partnership fiduciary obligations. See TEX. BUS. ORG. CODE ANN. §

152.002(a) (partnership statutes govern to the extent a partnership agreement does

not otherwise provide).

       A partner’s fiduciary duty includes: (1) duty of loyalty to the joint concern;

(2) duty of good faith, fairness, and honesty in dealings with each other on matters

pertaining to the partnership; (3) duty of full disclosure of all matters; (4)

accounting for partnership profits and property; and (5) refraining from competing
6
  Moreover, there is no claim that the limited partners terminated Patel’s interest; limited partners
generally do not owe any fiduciary duty to each other in this context. See Strebel v. Wimberly,
371 S.W.3d 267, 281 (Tex. App.—Houston [1st Dist.] 2012, pet. denied). But see LG Ins. Mgmt.
Servs., LP v. Leick, 378 S.W.3d 632, 643 n.8 (Tex. App.—Dallas 2012, pet. denied) (“Texas law
is not clear whether limited partners owe each other fiduciary duties.”).

                                                 18
or dealing with the partnership in a manner adverse to the partnership. See

Bohatch, 977 S.W.2d at 545; Brosseau v. Ranzau, 81 S.W.3d 384, 394-95 (Tex.

App.—Beaumont 2002, pet. denied). The claimed actions of Defendants in

terminating Patel’s interest do not constitute a breach of any of these duties.

      Patel cites various provisions of the Agreement that he claims required his

consent to the termination and reallocation of his interest. But his termination was

involuntary. Section 10.2 expressly provides for the expulsion of a limited partner

and the involuntary termination of his interest by the general partner. App’x Tab C

(CR62). Section 12.1 expressly provides that Patel “authorizes” and “ratifies and

confirms” the actions of the general partner in, among other things, executing “[a]ll

instruments and documents necessary to effectuate or act upon any reallocation of

a defaulting partner’s partnership interest.” Id. (CR66). The Agreement does not

require Patel’s consent to an involuntary termination or to the reallocation of his

interest as a defaulting partner. Id. (CR62,66). The Agreement he signed

authorized his involuntary termination and in that Agreement he ratified and

confirmed the reallocation of his interest. Id. (CR62,66). He knew that when he

signed the Agreement and when he received the March 4th letter from the

Partnership. App’x Tab B (CR121;Supp.CR102-06). He acknowledged that when

he filed his tax return showing a zero partnership interest. CR96; App’x Tab B

(CR141).

                                          19
      As the Supreme Court stated in Bohatch, partners may choose with whom

they associate. See Bohatch, 977 S.W.2d at 545. Patel can point to no requirement

in the Agreement or the law that barred Defendants from rejecting him as their

partner. Once the decision was made to reject him, he was notified, and under the

terms of the Agreement, he was not owed any money. Regardless of the language

used in the resolution terminating his interest, the termination was not a breach of

fiduciary duty. See id. at 546.

      A partner is presumed to satisfy the duty of care if the partner acts on an

informed basis and in good faith with a reasonable belief that it is acting in the

partnership’s interest. TEX. BUS. ORG. CODE ANN. § 152.206. Removing Patel from

the Partnership was objectively in the best interest of the Partnership. Patel had

shown himself to be unreliable by not finishing the construction properly and by

failing to pay subcontractors on-time, if at all. CR105,110-11. He held the half-

completed major construction project hostage for an increase in ownership.

CR107,116. He proved to be detrimental to the Partnership yet again when he

failed to respond to the bank’s request for financial information. This forced the

Partnership to have to refinance the loan with another bank. CR117. Considering

that Patel put up no money for his interest, but was supposed to successfully

complete the construction project (CR92-93,110), his failure to act and his cavalier

                                        20
attitude towards his partnership commitments and responsibilities were not in the

best interest of the Partnership.

      A partnership has the right to rid itself of partners who do not live up to their

obligations. To exercise that right cannot be a violation of a fiduciary duty. The

trial court properly granted summary judgment on the fiduciary-duty claim.

      B.     There is no genuine issue of material fact as to breach of contract.
      To prevail on a breach-of-contract claim, a plaintiff must prove: (1) there is

a valid, enforceable contract; (2) the plaintiff is a proper party to sue for breach of

contract; (3) the plaintiff performed, tendered performance of, or was excused from

performing its contractual obligations; (4) the defendant breached the contract; and

(5) defendant’s breach caused plaintiff injury. See B&W Supply, Inc. v. Beckman,

305 S.W.3d 10, 16 (Tex. App.—Houston [1st Dist.] 2008, pet. denied). The trial

court properly granted summary judgment on Patel’s breach-of-contract claim

because there is no question of fact with respect to any breach.

      Under Texas Business Organizations Code section 153.105, rights of limited

partners may only be created by: (1) the certificate of formation; (2) the partnership

agreement; (3) other sections of that chapter; or (4) other limited partnership

provisions. TEX. BUS. ORG. CODE ANN. § 153.105. Section 152.002(a) of the Code

provides:

             Except as provided by Subsection (b)[not relevant here],
             a partnership agreement governs the relations of the

                                          21
            partners and between the partners and the partnership. To
            the extent that the partnership agreement does not
            otherwise provide, this chapter and the other partnership
            provisions govern the relationship of the partners and
            between the partners and the partnership.

Id. § 152.002(a); see also id. § 153.003. Therefore, unless the Partnership

Agreement conflicts with a non-waivable provision of the law, the Agreement

governs the permissible actions by members of the Partnership with relation to it

and one another.

      Section 10.2 of the Partnership Agreement allowed the general partner to

terminate Patel’s partnership interest and expel him from the Partnership:

            Expulsion. All of the general partners may unanimously
            terminate the interest of a limited partner and expel
            him… (c) for failing to meet any commitment to the
            partnership or manager in accordance with any written
            undertaking signed by such limited partner… [T]he
            expulsion and termination may, in the sole discretion of
            the general partners in order to compensate for any
            damages caused to the partnership, result in a forfeiture
            to the partnership of all or a portion of the value of the
            partnership interest of the expelled partner at the time of
            such expulsion or termination.

App’x Tab C (CR62).

      No provision of the Texas Business Organizations Code prohibits partners

from agreeing to expulsion provisions in a partnership agreement. Because Patel

failed to meet his commitments to the Partnership, his interest was terminated and

his partnership interest was forfeited under section 10.2 of the Partnership

                                         22
Agreement. App’x Tab C (CR62); App’x Tab A (Supp.CR102-06). An amendment

to the Partnership Agreement was executed to document the fact Patel was no

longer a member of the Partnership effective January 1, 2008. CR126-29. Patel’s

2008 K-1, which he admitted filing with the IRS, accordingly showed his capital

account and ownership interest as zero. CR96,98, App’x Tab B (CR141).

      The forfeiture of the value of Patel’s partnership interest was “in the sole

discretion” of the general partner. App’x Tab A (CR62). The Partnership had the

right to expel him under section 10.2, and Patel cannot identify any provision of

the Agreement that was breached. There is no genuine issue of material fact

regarding Patel’s claim of breach of the Partnership Agreement. The trial court

properly granted summary judgment on the breach of contract claim.

      C.    There is no genuine issue of material fact as to conversion and
            theft.
      The trial court also properly granted a summary judgment on Patel’s

conversion and theft liability claims. The elements of conversion are: (1) the

plaintiff owned, possessed, or had the right to immediate possession of property;

(2) the property was personal property; (3) the defendant wrongfully exercised

dominion or control over the property; and (4) the plaintiff suffered injury. See

Green Int’l v. Solis, 951 S.W.2d 384, 391 (Tex. 1997); Alan Reuber Chevrolet, Inc.

v. Grady Chevrolet, Ltd., 287 S.W.3d 877, 888-89 (Tex. App.—Dallas 2009, no

pet.). The elements are similar under the Theft Liability Act. TEX. CIV. PRAC. &

                                       23
REM. CODE ANN. §§ 134.002(2) (“‘Theft’ means unlawfully appropriating property

or unlawfully obtaining services….”), 134.003.

       Patel violated the Partnership Agreement and triggered the expulsion clause.

Defendants had the right to take control of his partnership interest under section

10.2 of the Agreement. App’x Tab C (CR62). Furthermore, when ownership of

property is subject to a legitimate claim under a contract, there is no theft. See

Bokor v. State, 114 S.W.3d 558, 560 (Tex. App.—Fort Worth 2002, no pet.).

Patel’s expulsion and the reallocation of his partnership interest were authorized by

the contract. See, e.g., Bandy v. First State Bank, 835 S.W.2d 609, 622 (Tex. 1992)

(no conversion when bank had right to offset deposits against customer’s debts).

There is no genuine issue of material fact as to whether expulsion was justified or

authorized by the contract; therefore the termination of Patel’s interest cannot

constitute conversion or theft. The trial court properly granted summary judgment

on these claims.

III.   There is no fact question as to damages.
       Furthermore, there is no fact question as to whether Patel suffered any injury

from any of Defendants’ alleged actions. The Partnership Agreement governs the

relationship of the parties. Once Patel signed the Agreement, he agreed to each of

the following provisions:

                                         24
   Section 4.2 Return of Capital.

    Except as otherwise expressly provided for elsewhere herein, no
    partners shall be entitled to a refund or return of any capital
    contributions nor to withdraw any part of his capital account nor to
    receive any distributions of any kind, including of profits, from the
    partnership, except upon termination of the partnership which shall
    mean a complete winding up of the partnership and following the
    filing of a certificate of cancellation. App’x Tab C (CR45-46).

   Section 8.1 General Limitations.

    No limited partner may sell, pledge, transfer, exchange, hypothecate,
    encumber, give, devise, assign or otherwise dispose of or allow to be
    attached (“transfer” or “assign”) any portion of his partnership interest
    nor may he withdraw from the partnership without the prior written
    consent of all of the general partners, which decision shall be made at
    their sole discretion. Id. (CR53).

   Section 8.5 Redemption of Partnership Interest

    a.    The partnership interest of all limited partners are subject to
          redemption by the partnership at the election of the general
          partners. In the event the general partners make such an
          election, the general partners shall provide the limited partner
          whose partnership interest is to be redeemed (the “Redeemed
          Partner”) with at least sixty (60) days’ prior written notice of
          the redemption.

    b.    The purchase price of the Redeemed Partner’s LPI shall equal
          the balance of the Redeemed Partner’s capital account
          established under Section 5.1 hereof, determined as of the end
          of the calendar month immediately preceding the month in
          which the closing of the redemption transaction takes place. Id.
          (CR57-58).

   Section 10.2 Expulsion

    All of the general partners may unanimously terminate the interest of
    a limited partner and expel him (a) for interfering in the management
    of the partnership affairs or otherwise engaging in conduct which

                                25
             could result in the partnership losing its tax status as a partnership, (b)
             if the conduct of a limited partner brings the partnership into
             disrepute, or (c) for failing to meet any commitment to the partnership
             or manger in accordance with any written undertaking signed by such
             limited partner, but the general partners shall be not be required to so
             terminate. In each of the foregoing events, the expulsion and
             termination may, in the sole discretion of the general partners in order
             to compensate for any damages caused to the partnership, result in a
             forfeiture to the partnership of all of a portion of the value of the
             partnership interest of the expelled partner at the time of such
             expulsion or termination. Id. (CR62).

      Under these provisions, any partner who leaves the partnership, either

voluntarily or through expulsion, leaves with nothing more than his capital

account. Patel had a negative balance in his capital account. CR130-33. The value

of Patel’s capital account was never a positive amount during any time in which he

was a partner. As a matter of law he suffered no injury.

IV.   The summary judgment evidence was properly considered by the trial
      court.
      Patel claims for the first time on appeal that the summary judgment proof

was not properly authenticated. The objection has no merit. See TEX. R. CIV. P.

166a(d). The summary judgment evidence in this case consists exclusively of

deposition testimony and deposition exhibits. It was not necessary to authenticate

them. McConathy v. McConathy, 869 S.W.2d 341, 341 (Tex. 1994); Neely v.

Comm’n for Lawyer Discipline, 302 S.W.3d 331, 344 n.14 (Tex. App.—Houston

[14th Dist.] 2009, pet. denied) (“Deposition transcripts and the exhibits discussed

                                          26
in the deposition need no authentication and constitute proper summary judgment

evidence.”).

      This Court and the Ninth Court of Appeals have applied Rule 166a(d) to

discovery documents and concluded authentication was unnecessary. The Ninth

Court ruled “[a]uthentication of discovery documents is unnecessary if the

proponent complies with Rule 166a(d).” Guidry v. Wells, No. 09-05-00182-CV,

2006 WL 246493, at *1 (Tex. App.—Beaumont 2006, no pet.) (mem. op.) (holding

that referring to requests for admission and attaching an unauthenticated copy

satisfied Rule 166a(d)). Likewise, in Mowbray v. Avery, this Court explained that

two exhibits “were discovery documents in the same case and so do not need to be

authenticated to serve as summary judgment proof.” 76 S.W.3d 663, 689 n.44

(Tex. App.—Corpus Christi 2002, pet. denied).

      Patel did not object in the trial court and does not argue in this Court that

any of the summary judgment evidence is not subject to Rule 166a(d). See Cotton v

Cotton, 169 S.W.3d 824, 829 (Tex. App.—Dallas 2005, pet. denied) (“To the

extent the ‘exhibits’ are discovery products, Neel’s argument is not well taken, and

Neel makes no argument that the exhibits are not subject to rule 166a(d).”). He

does not point to any one exhibit as objectionable; he globally objects to them all

without mentioning Rule 166a(d). Yet he did not object to the summary judgment

evidence in the trial court. He did not ask the trial court for a ruling on any

                                        27
objection to the evidence. He has waived the objection. See TEX. R. APP. P. 33.1;

City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 677 (Tex. 1979);

Pink v. Goodyear Tire & Rubber Co., 324 S.W.3d 290, 301 (Tex. App.—

Beaumont 2010, writ dism’d) (“Generally a party is required to obtain an express

ruling on its objection to summary judgment evidence.”); Neely, 302 S.W.3d at

344-45.

      Patel’s objection has no basis. The deposition excerpts and exhibits were

properly considered by the trial court under Rule 166a(d), and any objection cannot

be made for the first time on appeal.

                                        PRAYER

      Appellees respectfully request that the summary judgment be affirmed.

                                         Respectfully submitted,

                                         MEHAFFYWEBER, P.C.

                                         By: /s/ David Gaultney
                                         David Gaultney
                                         State Bar No. 07765300
                                         davidgaultney@mehaffyweber.com
                                         Elana Einhorn
                                         State Bar No. 06502455
                                         elanaeinhorn@mehaffyweber.com
                                         MehaffyWeber, P.C.
                                         823 Congress Avenue, Suite 200
                                         Austin, Texas 78701
                                         Phone: (512) 394-3840
                                         Fax: (512) 394-3860

                                           28
Jeremy Stone
State Bar No. 24013577
jeremystone@mehaffyweber.com
MehaffyWeber, P.C.
500 Dallas, Suite 1200
Houston, Texas 77002
Phone: (713) 655-1200
Fax: (713) 655-0222

David E. Bernsen
State Bar No. 02217500
dbernsen@bernsenlaw.com
Christine L. Stetson
State Bar No. 00785047
cstetson@bernsenlaw.com
420 North MLK, Jr. Pkwy
Beaumont, Texas 77701
Phone: (409) 212-9994
Fax: (409) 212-9411

Glen W. Morgan
State Bar No. 14438900
gmorgan@rmqlawfirm.com
John Werner
State Bar No. 00789720
jwerner@rmqlawfirm.com
Reaud, Morgan & Quinn
801 Laurel St.
Post Office Box 26005
Beaumont, Texas 77720-6005
Phone: (409) 838-1000
Fax: (409) 833-8236

Brandy Wingate Voss
State Bar No. 24037046
brandy@appealsplus.com
Smith Law Group L.L.L.P.
820 E. Hackberry Ave.
McAllen, Texas 78503
Phone: (956) 683-6330

 29
                                       Fax: (956) 225-0406

                                       Attorneys for Harbor Hospice of Beaumont,
                                       LP, Harbor Hospice Manager, L.L.C, Qamar
                                       Arfeen, and Arfeen Properties, L.P.

                      CERTIFICATE OF COMPLIANCE

      I certify that this Appellees’ Brief complies with the length limits of Tex. R.
App. P. 9.4(i). The Brief contains 6,837 words, not counting the contents excluded
by Rule 9.4(i)(1).

                                       /s/ David Gaultney

                                         30
                         CERTIFICATE OF SERVICE

      I certify that a true and correct copy of this document has been forwarded to
the following counsel of record via electronic filing manager and e-mail on
December 10, 2015.

Chris Portner                             Jamie D. Matuska
cportner@portnerbond.com                  jamie@matuskalaw.com
J. Trenton Bond                           Matuska Law Firm
tbond@portnerbond.com                     2809 Highway 69 North
Portner Bond, P.L.L.C.                    Nederland, Texas 77627
1905 Calder A venue                       (409) 722-5600 Telephone
Beaumont, Texas 77701                     (409) 727-1290 Facsimile
(409) 838-4444 Telephone
(409) 554-0240 Facsimile

Anthony Malley, III
tony@mallaw.com
Malley Law Firm, P.L.L.C.
905 Orleans, Suite 110
Beaumont, Texas 77701
(409) 212-8888 Telephone                  ATTORNEYS FOR APPELLANT,
(409) 212-8002 Facsimile                  SANDEEP PATEL

                                             /s/ David Gaultney

                                        31
                           No. 13-15-00452-CV

              IN THE THIRTEENTH COURT OF APPEALS
                CORPUS CHRISTI—EDINBURG, TEXAS

                              SANDEEP PATEL,
                                                 Appellant,
                                     v.

 HARBOR HOSPICE OF BEAUMONT, LP, HARBOR HOSPICE MANAGER, LLC, QAMAR
                  ARFEEN, AND ARFEEN PROPERTIES, L.P.,
                                            Appellees.

           ON APPEAL FROM THE 172nd DISTRICT COURT,
            JEFFERSON COUNTY, TEXAS, NO. E-192,576

                         INDEX TO APPENDIX

Tab:          Description:

A.             Letter from the Partnership to Patel
B.             Patel’s 2008 IRS Schedule K-1
C.             Partnership Agreement

                                     32
             Tab A
(Letter from the Partnership to Patel)
                                                                                                          FILED
                                                                                                          DISTRICT CLERK OF
                                                                                                          JEFFERSON CO TEXAS
                                                                                                          1/22/2015 5:19:08 PM
              1
                                                                                                          JAMIE SMITH
                                                                                                          DISTRICT CLERK
                                                                                                          E-192576

                                                                                                                Maggie Parker

                                                                                                          GeMral Cot,lllsel and
                                                                                                 Director of Risk Management

                                                                                                Harbor Healt.hcara System, LP

                                                                                                        8515 Fannin, Suite lG7

                                                                                                          Beaumont, TX 7770i

                                                                                                            409.813.2332. office

                                                                                                              409.838.7598 fu

                                                                                                       mparkru:@harborhcs.com

                  March 4, 2008

                  VIA CERTIFIED 1.\'IAIL, RETUR.t~ RECEIPT REQUESTED AND REGULAR U.S. MAIL
                  Sandeep Patel
                  12802 Aspen Terrace
                  Cypress~ TX 7743j

     ()           Re:     Harbor Hospice of Beaumont, L.P.;
                          Loan fl330001985366 with Capital One1 N.A.

                  Dear Mr. Patel,

                  I am writing as General Counsel for Hat:bor Healthcare System~ L.P. and the Harbor Hospice
                  affiliates, including but not limited to Harbot· Hospice of Beaumont, L.P. As you know, the above
                  referenced loan on which you are a Guarantor matures March 12~ 2008. A copy of a letter from
                  Capital One dated February 25, 2008 was received this morning and is enclosed for your review. A
                  copy of the Cotntl:tercial Guaranty signed by you on th!s loan is also enclosed for your reference, as
l'
l
                  well as the Notice of Final Agreement.
I
i
I                 The bank has attempted on several occasions to obtain updated financials from you and yQu have
                  refused to provide same. Further, you have failed to return several phone messages regarding this
                  matter. If you do not provide updated financials to 1he bank on or before March 10, 2008, you will
                  be in material breach of your obligations .under the partnership agreement and the enclosed loah
                  documents.

                  Pursuant to Section 10.2 of the Agreement of Limited Partnership for Harbor Hospice of Beaumont,
                  .L.P~, '.'[~]~ <;>f .th~ g~~r~ p~~~r~ m~y .u~~O.l;l~ly terminat~. the inte!est of a !~t~d partnex:_ and
                  expel him .•. for failing to meet any commitment to the partnership or manager in accordance with
                  any written undertaking signed by such limited partner .... fTJhe expulsion and 1ermina~ion may,
                  in the sole discretion of the general partners in order to compensate for any damages caused to the
          )       partnership~ result in a forfeiture to the partnership of all or a portion of the· value of th.e partnership
                  interest of the expelled partner at the time of such expulsion or termination.,

                                                                                EXHIBIT     NO.~                  EXHIBIT "F":
                                                                                                                     102
                                                                                S. B~;·w!   4/l /J 4                 DEF000578
    ,..-\
    \   j

            Please allow this letter to serve as notice that unless you remedy this breach and provide updated
            financials to the bank on or before March 10, 2008, the general partner shall terminate your interest
            in Harbor Hospice of Beaumont~ L.P. and expel you for your continued breach of this written
            obligation. Please further note that if the general partner is forced to take action pursuant to Section
            10.2 of the partnership agreement, you will forfeit to the partnership the entire value of your
            partnershipinterest upon your term:ination and expulsion.

            Please give this matter your immediate attention. It is our hope that you will honor· your obligations
            and resolve this situation accordingly. Please give me a call to discuss your intentions on or before
            the March 10, 200& deadline.

            ve.ry nuty y~u:1}     .
            L-1!1;/!fp.e IM!h.
            ~~f:}Parker
            MMP/nunp
            Enc.

    ()

i
I
I
.
!

                                                                                                                 103
                                                                                                           DEF000579
    ~·            h

                      -CapitalOne®                                                                                                               I
("'\                                               <:ap.ual one, N.A.
\. J                                               F. 0. Box3597
                                                   Bato.n Rouge, 1A 70821
                                                   (225) 381·2000
                                                                                                                Roc:c:o v. Kuhn
                                                                                                                VIce President

                       February     25 1    2008

                      Harbor Hospice of Beaumont, L.P.
                      ATTN: Sandeep Patel 1 Member
                      2450 N. Major Drive
                      Beaumont/ TX. 77713

                       RE:    Loan i3300019S5366
                      Dear Mr. Patel:
                         ,.
                      The above referenced loan with Capital One, N.A. (~c.o.N.A.")
                      matures March 12" :woe and will become due and payable in full,
                      Due to this loan"s pending maturity, CONA hereby makes formal
(_)                   demand for the outstanding debt as follows:
                              Principal                                                     $493,708.32
                              Interest {through March 12, 2008)                               $3,373,67
                              Total Amount Due                                              $4971081.99
                      Formal qemand is hereby made for $497,081.99 to be paid on or
                      before March 12, 2008. Should you fail to comply with CONA's
                      formal demand for $.497, 081.99, it is CONA' s intention to proceed
                      with any legal action necessary to collect all sums due under
                      your Promissory Note, including all alla"lflable attorney's fees and
                      court costs which CONA incurs in collecting the amounts owed
                      under the said Note. Your remi.ttance must be paid by cashier's
                      check and mailed to the undersigned.
                       Should any payments less than the total outstanding balance plus all accrued
                       ;interest and :.fees be received £_rom you, C!ONA will apply those payments t:o
                       reduce your debt. However,. CON.A does not waive any or i.t::s rights and
                      _spea.iri.cally reserves its rights to enforC$ the terms of yo~r loan documents
                       even 1.£ those payment~ are reoe.:Lved and applied to your debt.

~
"'~      ,.
              )

                              CAPI~AL   ONB, N.A, • P. 0. BOX 3697_ • BATON   ~QUGE,   LA   108~1   • PttONBt     (225)   381-~214

                                                                                                                                         104
                                                                                                                                     DEF000580
.. ...   •,
              .
 ,.. \
\ l
                  February 25, 2008
                  Harbor Hospice of Beaumont, L.P.
                  ATTN: Sandeep Patel, Member
                  Page: 2

                  Should you have any questions concerning this matter, l can be
                  reached at (225) 381-2214.

                  1;Z.~
                  Rocco v. Kuhn
                  Vice !?resident
                  rvk/kwb.

                  cc:   File

()

                                                                                   105
                                                                               DEF000581
                                                                                                                                                                                      "

        -----~-----·-------

               C;JJpit~IOnee                                                                  ·'-":
                                                                                                                                                                             ~-¢;~ :~J                    -- ·~ ,._
                       .       ,            ,

                                                     Capital One, N.A.
                                                     P.o. Box 3597
                                                                                                                                                                       •
                                                                                                                                                                           f {l~~·-'1"'· .... ···~~---------~               •••••"""--···     ........!,r,.~~
         Tab B
(Patel’s 2008 IRS Schedule K)
                         7

                                                                                                                                                                      651108
  Selledule K·1
  (Fmm 1065)                               ForcalMdoryoor 2003, or !lo>:
                                                                                2008
  Oa11artment of til& Troasury              yoor beglcmll!ll - - - - - - - - - - - !----...Al~lli!:ili!lru!:...Q!~:ru!Ll!lrul2!!!1§!!:J!!i!.IDL~
  lntemal R~Mmoo.SefllklD                          endll!ll - - - - - - - - - - - -
  Partner's Share of Income, ue.~:~uc..:aon:s,
  Credits, etc.

                                                                                                                  m;t rental income (loss)

                                                                                                                                                            min tax (AMT) Items

      D   D        Chook If tills Is a !}UbUc.'y lraded partnership {PTP)                                       sllort·lerm capitaroatn (toss)

                                                                                                                long·tarm capl!al gain (loss}
                          Information About the Partner
   E Partn&r'llldDntlf)llng number

                                                                           limttEtd partner or other lLC
                   rnember·mana\}or                                        member
   H      00 Dornesllc partner                                    D        Fnralgn partner
   I What type of entity Is this palinar? --=-I..;;;.N.;..;;D_I.;;;..V"'-'-'I"'-D~U..:c-AL-=-------         1----------+--1---------l
  J f>ltrtners share of profit, loss, and capital:
                     -Beginning                                                Eni!lng
          Profit                 6. 6 0 3529 h.                                   0.0000000%
          ~-                     6.6035294%                                       0.0000000%
    ca · 1                       6. 603529h.                                      0.0000000%
  K Partners share of liabllilies at year end:
    Nonrecourse ................................................ $ - - - - - - - - !-2S~!!!!Qllil!!§@!~lf!!.11~!l!i!!~J!lli!l!l!!!iQ!l,__ _ _ _~
    Qualified nonrecourse tlnancl.ng ........................ $ ------~
    RecQurse ................... ;;~......... .:. ..................... $ _ _ _ _ _ ___;;,_,

  t       P~rtners capital t~coounl analysis:
          Beginning capltafaecount .............................. $ ~-----'-<-::4:-::1:-''-:6:-:6~4i2-. <»
          C~pital eont!lbutlld during toe year .~............... $                    70 r 2 3 9 • ~
          Curran! year Increase (decrease) ..................... $ -----::-::,..--::,...,.,0:':-. ~
       Withdrawals & dlstrlbuHons ...........,.................. $(                          2 8 , 5 75 ~                            EXHIBIT No.ac:L
       Eadlno caf)itala~nt .................................... $                                      0 • u.

       00 Tax basis                        0GAAP                           D     Sectlon 704(b) book
                                                                                                                                     S. Bearcl4   /r powers·.
             .                                         .
       The specific activity in which the partnership intends to
 engage upon formation is to provide inpatient hospice cart?. and
 services related or incidental thereto to individuals·in need of
 such services.                                        ·

     Notwithstandirtg any provision in this Agreement to the
contrary, if a physician owns 1 directly or indirectly, an LP or GP
interest in the partnership, there shall be·an absolute prohibition
a9ainst the referral by that physician of that physician's patients
to the partnership for the receipt of hospice services covered by
Medicare, unless the hospice services are reimbursed under· the
hospice composite rate.
      Section 1.4   Partnership Property.
     The property· owned by the partnership may be held in the name
of the partnership or in the name of any general partner.
                             AR.TICLE I I

                                 TERM
     The term of the partnership shall commence on the effective
date of this agreement and shall continue for ninety-nine (99)
years, after which date the partnership shall dissolve, unless
sooner dissolved in accordance with the Act or upon the occurrence
of any of tpe following events of dissolution:
      (a)   the voluntary bankruptcy of the partnership;
     (b)    the termination and winding up of the partnership
pursuant to other provisions contained elsewhere herein; or

       (c)  the written agreement of all partners to dissolve the
Pa:rt.nershiPi

provided, however, that the sale or other disposition of all or

                                  2

                                                            Defend(lnts p. 4   -

                                                                    DEF00031643
 substantially all of the assets of the partnership or any time
 perioq of inactivity by the partnership shall not in and of itself
 dissolve or be grounds to dissolve the partnership.

                                ARTICLE III
                INTEREST OF GENERAL AND LIMITED
      Section 3:1     General Partner(s)

        The initial General Partner (the 11 GP11) is identified and its
address is listed on Exhibit 11 A11 under the caption "General
Partner 11 • The initial General Partner and each succeeding general
partner, whether one or more, is referred to individually and
collectively as general partner, general partners 1 GP, or GPs.
Each GP 13hall have a upartnership interest" {IIPJU) (which term is
defined in the Act) and shall be allocated profits and losse~ in
the percentage set forth opposite its name under the column labeled
11
   Pl"1 .subject to it being changed over time in accordance with the
other provisions herein. The aggregate or s~m of all partnership
intere.sts of all GPs ia referred to as the 11 AGIU (aggregate general
partnership interest}. The general partnership interest of a GP ·is
referred to as IIGPI 11 •

      Section 3.2    Limited Partners.

     There shall be three (3) classes of "limited partners"
(collect:tvely ~ the "LPs 11 and each 1 an \\LP 11 ) • as fo1.1ows! Class 'A,
Class B, and Class c. The initial Class A LPs and Class S LPa are
identified on Exhibit "A" under the caption "Limited PartnerS 11 •
The Class C limited partnership inte:rests shown on Exhibit 11 1\/1 are
initially reserved for future investors and shall be issued to such
investors in the discretion of the GP_        ·                '
      Except as otherwise provided in this Agreement, each LP have a
partnership interest and shall be allocated profits and losses in
the percentage set forth opposite his, her or its respective name
under the column labeled 11 PP 1 subject to it being changed over
time in accoroance with the other.provisions herein. The aggregate
or sum of al~ partnershi.p interests of all Lf's is referred to as
the 11 111..! '1 (aggregate limited partnership interest) . ·A LP Pl is
referred to as a "LPI".

                                                                  Defendants   p.   5

                                                                         DEF000317
                                                                                        44
          Section 3.3     Voting.
       Each partner shall have , the number o-r--votes--equ.a.l---to_tbe_ _ __
 percentage of their respective Pl (partnerahip interest{e)), The
 agg:regate or sum of all AGI and ALI shall be I'API 11 (aggregate
 partnership interest) .There shall be no difference in votirig rights
 among the different classes of LP!.
          Section 3.4     Changes.
      Any changes,,aclditions or deletions to the list of GPs o:r LPs
 or their partnership interests made and agreed upon hereafter from
 that listed on Exhibit 11 A11 shall be .recorded on Exhibit ncu ·and
 initialed by all GPs and any LPs whose PI nas so changed.
                                     ARTICLE IV

                              CAPITAL CONTRIBUTIONS
    ,. , Section 4.1      Capital Contributions.
     Each partner shall make (if he has· not already made the
contribution of capital to the partnership} contributions of cash 1
services, property or obligations set forth opposite his or her
name and initials on Exhibit nJ.\. 11 or ncu (if any shall be noted on
 ucu} •

          Sectio~   4.2   Return of Capital.
       Except as otherwise expressly provided for elsewhere herein,
 no partner shall be entitled to a r~fund or return of any capital
 contributions nor to withdraw any part of his capital account nor
 to receive any distributions of any kind, including of profits 1
frQm the partnership, except upon termination of the partnership
which shall mean a complete winding up of , the partnership anC!
following· the filing of a certificate of cancellation.          Such a
termination or winding up does not include a dissolution which
involves only a change in the relationship of the partners where
the partnership continues (referred to in the Act and he~e aa a
11
   reconstitution 11 ) . Mo):"eover, except as provided to the contrary
herein or by the law, the general -partner shall not be personally
liable for the return of contributions of oi additions to the
capital of any limited partner 1 or any portion thereof, it being
expressly understood that any such return shall be made solely from
partnership assets. The GP~ shall decide for each partner whether
he may receive property or oash in exchange of all or part .of his

                                                            Defendants p. e·
                                                                               45
                                                                   DEF000318
                   partnership interest if and when auch e:x.chang_e may be permitted by
                   the other provisions herein.

                         Section 4. 3    Loans ..
---··H······-···        The ~artnership shall be authorized to loan to and borrow
                   money from any partner or oEner intlivi'dua1·-or-ent-i-ty~e~on.11 .)- •.
                   The amount of any loan made by or to a partner shall not: be
                   considered an increase or decrease in such partner 1 a capital
                   contribution or account or otherwise a contribution to the
                   partnership,nor shall the making of any such loan affect the profit
                   and loss ratios.     The general partner may, but shall not be
                   obligated toj make loans to the partnership so that the partnership
                   may pay its obligations timely.     obligations incluoe debts for
                   which the partnership has no personal liability but to which its
                   property m~y be subject.
                                                    ARTICLE V

                                 CA-PITAL ACCOUNTS; INTEREST; WITBDRAt>1AL

                        Section 5.l     Capital Accounts.

                    A capital account shall be estimated for each partner and
               shall. be maintained according to the Act and income tax accounting
               principles, including 1 for exampleJ (a) increasing or crediting a
               partner 1 s capital account _with the amount of his capital
               contribution when made {b) crediting or reducing {debiting), as the
               case may be 1 a partner 1 s ca);:dtal account \artner.
                  {d} No partner (GP or LP) may withdraw and receive the fair
            value of his partnership interests as of the date of his withdrawal
            until the earlier of (a} the date that the partnership liquidates
            and winds up its affairs pursuant to Section 8.04 of the Act or (b)
            the date agreed upon by all general partners in the partnership
            {excluding/ if applicable, the withdrawing partner)r which
            agreement is memorialized in writing, signed by all such general
            partners and made at their sole discretion.
                  (e} Except where otherwise required by applicable law, an
           assignee or attempted assignee of a partn~r shall not be entitled
           to receive distributions of the assignor or would-be assignor
           partner unless and until all general partners in the partnership
            (excluding the assignor if he were a general partner) have agreed
           to such assignment and to permit such di.stributions or withdrawals
           and evidence such agreement in writing, signed by all of them, made
           at their ~ole discretion.

                 Section 8.5     Redemption of ?artnership Interest.
                (a) The partnership interests of all limited partners are
           subject to redemption by the partnership at the election of the

                                                  16

                                                                               Defendants p. 18
                                                                                                   57
                                                                                       DEF000330
 general partne~s. In  the event the general partners make such an,
 election~ the general partners shall provide the limited partner
 whose partnership interest is to be redeemed (the '\Redeemed
 Partner"} with at least sixty {60) days' prior written notice of
 the redemption.
       tr)-The--purehase....p-~i-ce of the Redeemed Partner's LPI shall
 equal the Ralance of the Redeemed Partner1 s capi~account
 established under Section 5.l hereof, determined as of the end of
 the calendar month immediately preceding the month in which the
 closing of the redemption transaction takes place,

                              ARTlCLE IX
             DXSPOSITION OF GENERAL PARTNER'S INTEREST
      Section 9,1   Voluntary Disposition or Encumbrance; Removal,
       (a}   No general partner may assign or transfer (i.e. sellt
  transfers assign 1 exchange 1 dispose of, pledge, hypothecate,
 encumber or allow to be att.ached) all or any part of his interest
 in the partnership, or withdraw or resign as general partner, no~
 shall a new or substitute general partner be admitted to the
 partnership, without the prior written consent of all of the other
 partners (general partners and limited partners),         Providedr
 however 1 a sole remaining general partner shall have the right to
 withdraw as a general partner only i f he notifies the limited
 partners of his desire to admit a substitute general partner and
 the unanimous written consent of the limited partners to such
 admission is granted and the new general partner is admitted to the
 partnership prior to the time of the withdrawal of the prior
 general partner. AnY attempted unpermitted assignment or transfer
 of all or part of any partnership interest shall be automatically
void and ineffective, except to the extent otherwise required by
 law. Upon the granting of unanimous written consent of all of the
partners, additional or substitute general partners may be
 designated with such share of the then existing transferring
general partners' aggregate interest as the general partner(s) and
designated additional or substitute general partners may agree
upon. Without limitation to the generality of the.foregoing, any
general partner may 1 at any time without obtaining any prior
written consent 1 convert all but one percent (1%) of his general
partnership interest to a limited partnership interest.          Any
permittect assignee or transferee· of a GP pursuant to all of.the
provisions herein shall become a general partner under this
Agreement with all of the rights and subj.ect to all of the
obligations of a general partner under this Agreement.            No
substitution or change of general partners shall- eve-r cause a
termination/ liquidation or winding up of this partnership/ but
instead the partnership shall continue uninterrupted and shall be -

                                  17

                                                           Defendants p. 1g

                                                                               58
                                                                   DEF000331
                                     ....
                                 ~~--

  reconstituted pursuant to the Act.
          (b) Notwithstanding the other prov:tsJ.ons herein and without
  limiting any other rights and remedies of any of the parties hereto
  arising from any breach by a general partner of the provisions of
  thi.s Agreemen\: 1                        Lthe___ p~ovisions of Section
  9. l (a} above by the general partner {11 breaching general partner 11 · ) - ; , - - - - -
  or upon any attempted -unpermitted assignment, transfer or
 attachment of any part of a general partner partnership interest
 without the prior wr~tten consent signed by all other partners, the
 partner status and partnership interest of such breaching general
 partner or such status and interest of his assignee or creditor {if
 such assignment~ transfer or attachment is ever permitted or is not
 void) shall automatically become a limited partner and limited
 partnership interest~ ~less a vote to accomplish this is required
 by law~ in which case the percentage in inte:rest of the limited
 partners required by law ~~lect to deem such genexal partner as
 having retired and ceased to be a general partner and his
 partnership interest shall thereupon become a limited partnership
 interest and the partnership shall continue uninterrupted and shall
 be reconstituted pursuant to the Act·.
       (c)  Upon the written consent or affi:rmative vote of all
 limited partners, a general partner may be removed if, immediately
 prior to such removal{ a successor general partner is elected by
 the limited partners owning ninety percent (90%) of the (then
 outstanding) AL! and becomes a substitute general partner or more
 than fifty percent (50%) of the ALl agree that no successor general
 partner shall be elected,
        (d.) Notwithstanding the prov~slons of Section 9.1\a), then
  the existing general partners may, at any time, upon their
  unanimous written consent, appoint a new general partner from the
. ranks of the then existing limited partners, if such appointee
  shall artner. If, however, he
      gives notice of his intent to no long~r be treated as Tax Partner
      aa provided a~ove, a Tax Partner shall be designated as provided by
      Section 623l(a} {7) of the Code. The Tax Partner shall keep all
      other partners informed of all administrative and judicial
      proceedings and any other matters which may come to the attention
      of the Tax Partner in its capacity as Tax Partner and which may, in
      the sole discretion of the ~ax Parttler, affect a partner 1 s tax
      liability \'Jith respect to. partnership tax items·, by giving the
      other partners notice thereof within a reasonable time after the
     Tax Partner becomes informed of any such matter and in a reasonable
     manner consistent with the regulations promulgated under Section
      6223 (g) of the Code.        The Tax Partner may take any action
     contemplated by Sections 6224 through 6232 of the Code if it has
     fi~st giyen the other partners notice of the contemplated action
     and has not received within twenty (20) days after such notice is
     sent, notice of the disapproval of such contemplated action by
     partners owning in the aggregate at least fifty-one percent (51%)
     of the partnership aggregate interests owned by all partners. This
     provision is not intended to authori~e the Tax Partner to take any
     action which is left to the determination of an inoividual partner
     under Sections 6222 through 6232 of the Code. The general partners
     shall insure that there is always a Tax Partner who is aware that
     he has such status and the GPs may 1 if a Tax Partner resigns such
     position, by majority vote of GPX, appoint a Tax Partner
     replacement.
         section 11.5    Annual Meeting to Review Financial Statements.
        Not less than once a year 1 and as soon as possible after
   completion of the financial statements; a meeting shall be held for
   all general and limited partners to attend, The GPs shall review
   and discuss the financial statement at that meeting and report to
   the limited partners the financial condition of the partnership.
   All annual meetings shall be held at a place agreed upon by the
   general partners 1 or if not 1 then at the principal place of

                                     23

                                                            .Defendants p. 25

                                                                     DEF000337
                                                                                 64
 business of the partnership on or before the third Tuesday in April
 of each year and all partners shall receive prior notice of such
 meeting dates and places.
      Section 11,6  Interim Financial Statements.
                          ----··----···- ~-----
      On written request, any limited partner shill be ent·ttred-t-o---_____,____
 copies of any interim financial statements prepared for· the
 partnership which exiat,
                             .ARTICLE XII
                          :POWER OF ATTORNEY

      Section 12.1   Power of Attorney.
      The GPs shall from time to time elect one GP to act as
attorney-in-fact {AIF). Without limiting the generality and effect
of any other provisions herein appointing a general partner as
attorney in fact for all the limited partners under this Agreement
in connection \'lith the doing of certain acts and the filing of
certain papers 1 each limited partner hereunder hereby makes,
constitutes and appoints~ reserving full power of substitution and
revocation, the general partner \'lho is the .AIF (or if none/ the
general partner v1ith the largest partnership interest. in this
partnership or if more than one of them, the oldest), his true and
lawful attorney in fact, empowered to act alone, and in the name1
place and stead of each such limited partner, to make, execute,
sign, acknowledge and swear to all instruments and file and record
all documents requisite to carrying out the intention and purpose
of this Agreement, including but not limited to the following:
     {a) All business certificates and necessary Certificates of
Limited Partnership (if any) and amendments thereto from time to
time as required by the Act or this Agreement;
     (b)   All documents which may be required to effect the
dissolution of the partnership which is permitted herein and any
permitted cancellation of its Certificate of Limited Partnership,
as amended from time to time;
     (c} All fictitious or assumed name certificates required or
permitted to be file on behalf -of the ~artnership;
      (d) All such other instruments, documents and certificates
which may from time to time be required by the laws of the State of
Texas, the United States of America, or any other jurisdiction in
which the .partnexship shall determine to do business, or any
political subdivision or agency thereof, to effectuate, implement 1
continue and defend the valid and subsisting existence of the

                                                         Defendants p. 26
                                                                             65
                                                                 DEF000338
 Partnership as a limited partnership;
      {e) All instruments and.documents necessary to effectuate or
 act upon any reallocation of a defaulting partner 1 s partnership
 interest;
      (:f}   . 'l'o   reflect any amendments._duly made to the--Ag:reeme!'!t; an.,...d--. - - - -
      {g/   To reflect the admission to the partnership of any
 substituted partner or the withdrawal of any partner, i~ the manner
 prescribed in this         ~greement.

     All such powers of attorney shall survive the incompetency,
incapacity, bankruptcy, retirement or withdrawal of any limited
partner granting the same and the assignment by any such granting
partne~ of the whole or any part of his interest hereunder.

     Each limited partner authorizes the API to take any further
action which such AFI shall consider necessary or advisable to be
done regarding the foregoing as fully as such limited partner might
or could do if personally present and hereby ~atifies and confirms
all that such AF! shall lawfully do or cause to be done by virtue
hereof.
     Section 12.2           Amendments.
      (a} Each limited partner hereby authorizes and empowers the
general partners to amend this Agreement from time to time by
agreement of GPs owning at least ninety {90%) percent of the AGI,
provided that without the prior written consent of all of the
limited partners 1 no such amendment by the ,general partners shal~~
          {i)   enlarge the rights or reduce the obligations or
duties of the general partners;
         (ii)   affect the rights or restrictions regarding the
assignability of partnership interests;

        {iii}          modify the term of the partnership or amend this
Section 12.2;
        . (iv)  reduce the rights or interests, or ·enlarge the
obligations, of the limited partners; or
           (v) add or delete any GP unless permitted by the other
provisions herein.
     (b)   The general partner shall promptly notify the limited
partners of any such amendments.

                                          25

                                                                      Defendants p. 27

                                                                              DEF000339
                                                                                          66
              (c)Except where specifically provided elsewhere herein or by
                 applicable law and except with respect to vested rights
                 of the partners, this Partnership Agreement may be
                 amended at any time by a vote of partners owning more
                 than fifty percent (50%} of each of the ~GI and ALI. A
-------------------+~~ny_a~dment s~gped by all partners voting in
                 favor of such amendment shall be prompt.:Ly·- mailed or--~---·­
               . delivered to each partner at his or her last known
                 address.
                                     ARTICLE XIII
                                  GENERAL PROVISIONS
             Section 13.1    Recipient of Distributions and Payments,
             All distributions and payments of cash or property to be made
        pursuant to the provisions of this Agreement shall be made directly
        to the part;ies l'lho are entitled hereto at their respective
        addresses indicated on Exhibits uAn and ncu or at such other
        address as $hall have been set forth in a notice sent·pursuanc to
        the provisions of Section 13,2.
            Section 13 • 2   Communicat-ions and Notice.

            E~cept as otherwise expressly provided in this Agreement/ any
       offer,    acceptance,   election,  approval,   consent,      objection,
       certification, reguest, waiver, notice or other document required
       or permitted to be made or given pursuant to any provisions of this
       Agreement, shall be deemed duly made or given 1 as the case may be,
       if in writing 1 signed by or one behalf of the person making or
       giving . the same 1 and shall be deemed completed when eithe;c
       personally delivered (with receipt acknowledged by the recipient)
       or two {2) days after deposited in the United States mail, first
       class, postage prepaid/ addressed to .the person or persons to whom
       such offer, acceptance 1 election, approval, consent, certification,
       required, waiver or notice is to be made or given at their
       respective addreg:ses as indicated on Exhibit 11 .A 11 and, in the case
       of the Partnership, at the office of the partnership specified in
       Exhibit 11 Bu of this Agreement, or 1 in any case 1 at such other
       address as shall have been set forth in a notice sent pursuant to
       the provisions of this Section 13.2.
            Section 13.3     Entil:e Agreement; Applicable Law; Effect.
            This document contains the entire agreement by and among the
       parties and supereedes any prior understandings and agreements
       among them respecting the matters provided for herein.        This
       agreement shall be construed, enforced. and governed in conformity
       with the la~tlS of the State of Texas 1 without giving effect to

                                                                   Defendants p. 28
                                                                                      67
                                                                           DEF00034Q
{
     principles of conflicts of 1aw 1 and shall be binding upon the
     parties hereto/ their sucoessors 1 heirs, devisees~ permitted
     assigns, legal representatives, executors and administrators but
     shall not be deemed for the benefit of creditoxs or any other
     person.

          Section 13 .. 4 Modificationi v7aiver or Termination.
         Except as otherwise expressly provided in this Agreement, no
    modification, waiver or tet'mination of thia·Agr~ement, or any P?rt
    hereof, shall be effective unless made in writing signed by l:he
    party or parties sought to be bound thereby, and no failure to
    pursue or elect any remedy shall constitute a waiver of any default
    under or breach of any provision of this Agreement 1 nor shall any
    waiver of any default under or breach of any provision of this
    Agreement b.e deemed to be a waiver of any other s·ubsequent similar
    or different default under or breach of such or any other provision
    of or any election or remedies available in connection therewith,
    Receipt by any party of any money or other consideration due under
    this Agreement 1 with or without knowledge of any breach or default,
    shall not constitute a waiver of such breach or default or of any
    provision of this Agreement.
          Section 13,5 Counterparts.
         This Agreement may he executed in one or more counterparts
    and, notwithstanding that all of the parties did not execute the
    same counterpart, each of the counterparts shall, for all purposes,
    be deemed to be an origina·l so long as they all sign at lea.st. one
    copy or a signature page, and all of such counterparts shall
    constitute one and the same instrument binding on all of the
    parties het'eto,     Limited· partners may become parties to this
    Agreement by executing and delivering to the general partner a
    uaignature page 11 hereto in form approved and signed by the general
    partner.
         Section 13.6    Separability.
          Each provision of this Agreement shall be considered separable
    and (a) if for any reason any provision (clause·, 'lrlord 1 sentence or
    portion of a sentence) or provisions herein are determined to be
    invalid and contra:ty to any existing or future 1aw 1 such inval;i..dity
    shall not impair the operation of or affect those portion of this
    Agreement which are valid, and (b) if for any reason any provision
    or pxovisions of this Agreement would subject the limited partners
    to any personal liability for the obligations of the partnership
    under the laws of the State of Texas or any other 1aws 1 as the same
    may no'll or hereafter exist 1 such provision or provisions shall be
    deemed void and of no effect.

                                       27

                                                                Defendants p .. 29

                                                                         DEF000341
                                                                                     68
                       Section 13.7       Article and Section Headings.

                        Article and section titles or capt;.ions contained in this
                 Agreement are inserted only as a matter of convenienc·e and for
------~r~e~f;_,;e;_:r;,.e~nci;r;·-'--and~shal-1--not-be- . .constxp.li:lHTED PAR.TNER EXECUTION PAGE

NAME OF LIMITED PARTNER: Aman Jafar

Aman Jafar

Signature of Spouse {if applicable):

Date of Execution: __~/~1_-~0~?_~~~-----

                                  35

                                                       Defendants p. 37

                                                               DEF000349
                                                                          76
                     LIMITED PARTNER EXECUTION PAGE

NAME OF LIMITED   P~TNER:    Janet Montagne
          of Limited Partner:

Janet

Signature of Spouse {if applicable} :

Date of Execution:    /(:?Jc; ·--'1)5

                                    36

                                                      , Defendants p. 38

                                                                DEF000350
                                                                           77
                     LIMITEP       PJ4~TNER    EXECUTION PAGE

 NAME OF LIMITED PARTNER: Joe Royall Chapman
 Signature of Limited Partner:

    ~&<---"~~
Joe ~all    Chapman'-.::

. Signature of Spouse (if applicable}:

    ~c~                                          =

Date of Execution: __      ~1~~~--~-r~;j-~-~------

                                          37

                                                                Defendants p. 39

                                                                        DEF000351
                                                                                   78
                     LIMITED PARTNER .EXECUTION PAGE

NAME OF LIMITED PARTNER: Sandeep Patel

Signature of Spouse (if applicable}:

Date of Execution:

                                  38

                                                       Defendants p. 40

                                                               DEFOOQ352
                                                                          79
                     LIM!TEO PARTNER EXECUTION PAGE

NAME OF LIMITED PARTNER: Allen David Ayres

Signature o.f· Spouse (if applicable) :

Date of Execution!      ll- c:l( • D\
                     ---=------------

                                 39

                                                      Defendants p. 41

                                                               DEF000353
                                                                         80
                  LlMlTED PARTNER EXECUTION PAGE

NAME OF LIMITED PARTNER: Triptesh Chaudhury
Signature of Limited   Partner~

.Tripg~
Signature of Spouse (if applicable)    ~

                                  40

                                                   Defendants p. 42

                                                                      81
                                                           DEF000354
                      LIMITED PARTNER EXECUTION PAGE

NAME OF L!MlTED PARTNER: Anwar Family Partners, Ltd.

                                  General Partner

Signature   o~   Spouse (if applicable}:
Not applicable.

Date of   Execution:~_/l+~~~+r~-6~--~----

                                   41

                                                       Defendants p. 43

                                                                          82
                                                               DEF000355
                         BXHIBIT "A.11 CONTINtrED
INITIALS LIMITED PARTNERS
         Name                            Contribution

                                                        to total PI
         Class A Limited Partners {cont 1 d}:

         sandeep Patel
         12802 Aspen Terrace
         Cypress 1 TX 77433                               3.0000%

         Allen David Ayre~
         2501 North Street
         Beaumont 1 TX 77702                             3.0000%

         ~nwa:rFamily Partners. Ltd.
         3850 Champions Dr.
         Beaumont/ TX 7770?       $ 7 1 832.84           7.8330%

         ~        B Limited .Partners:
         Arfeen Properties~ L.P.
         7683 Cobblestone Terrace
         ~umberton 1 TX 77657                            4.1670%

         Te~as    Realms! Ltd.
         3840 Champions Dr.
         Beaumont, TX 77107              $ 49,992,00     4.1660%

         Aman Jafar
         1323 Meadowlark Lane
         Sugarland 1 TX 7?4?8            $ 49,992.00     4.1660%

         Triptesh chaudhury
         P.O. Box 2652
         Port Arthur, TX 77643           $ 50,004.00     4.1670%

                                                              Defendants p. 44

                                                                                 83
                                                                       DEF000356
INITIALS GENERAL PARTNER
            Name                       contribution    Percentage

                                                        to total PI
            Harbor Hospice Managers 1 L.L.C.
            4010 College Street
            Suite 100
            Beaumont, Texas ?7707        $1~000.00         1.00%

INITlA~S   LIMITED PARtNERS
           Name                        Contribu'tion   Percentage
           &·Address                   pf Capital      & Interest
                                                          LPI %
                                                       to total PI
           Class A Limited Partners:
           Arfeen Properties, L.P.
 ~ 7683 Cobblestone Terrace
~          ~umberton, TX 77657                         23,5000%

           Texas Realms 1 Ltd.
           3840 Champions Dr.
           Beaumont, TX 77707          $ 7,833.43        7.8335%

           Aman Jafar
           1323 Meadowlark ~ane
           Sugar1and 1 TX 77478        $ 7,833.43       7.8335%

           Janet Montagne
           2230 Chasse Bend
           orange 1 T:X. 77632                          3,0000%

           Joe Royall Chapman
           7880 Lantana
           Beaumont, TX 77713          $ 3,000.15       3.0000%

                                                              Defendants p. 45

                                                                      DEF000357
                                                                                 84
                   LIM!TED PARTNER EXECUTlON PAG$

NAMB OF LIMITED PARTNER: Suleman Lalani
Signature of Limited Partner:

Suleman   Lalan~
Signature of SpQUSe (if applicable)                =

Pate of Execution: _   ____.['-'-lq~1+1lf-"o-'-L_.__

                                          42

                                                       Defendan~ p.   46

                                                                       85
                                                               DEFOOQ358
                       EXHIBIT "An CONTINUED
INITIALS LIMITED PARTNERS

         Class B Limited Partners (cont 1 d);

         A.n\