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830 S.W.2d 706

Gannon v. Baker

Texas Court of Appeals, 1st District (Houston) · decided 1992-04-30

Good law ✅— No negative treatment on recordhow we know

Decided 1992-04-30

How this case has been cited

Cited by 20 later decisions — most recently August 2018

17 state decisions

100199220002010decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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O’CONNOR, Justice,

¶1dissenting.

¶2I dissent. The majority holds that the leveling agreement is not sufficiently definite to be enforceable.

¶3Both parties agree that they had an oral leveling agreement. At his deposition, Baker acknowledged that they agreed to level the stock once his personal credit was no longer necessary for the financial well-being of the corporation.

¶4The majority finds the agreement was not definite because at the time they made the leveling agreement there were three parties — Gannon, Baker, and Nail — and at the time of the suit there were two — Gan-non and Baker. Thus, the majority holds, because the agreement did not specify how the stock would be equalized if one of the three sold his interest, the entire agreement was unenforceable.

¶5I would hold that the agreement to level was a certain and definite agreement. Under the agreement, Gannon could expect to get as much as one-half of the stock to as little as one-third of the stock. I would reverse and remand the issue of Gannon’s percent of stock ownership to the jury. The majority hold he gets nothing because they did not plan for Nail selling his interest to Baker.

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