Powers et al. v. Berry et al., No. 24-BC11A-0025 (11th Division, Texas Business Court)

Beck Redden served as co-counsel to Greenberg Traurig LLP in a landmark business dispute that produced the first jury verdict in the recently created Texas Business Court. Representing plaintiff Albert “Ted” Powers, the team obtained a significant win in a high-stakes ownership dispute over a proposed deepwater crude oil export terminal near Corpus Christi, Texas. After an eight-day jury trial and less than five hours of deliberations, a Harris County jury found that Mr. Powers’ co-investors breached a 2019 investment agreement granting him a 20% ownership interest and rejected counterclaims alleging fiduciary and contractual breaches by Mr. Powers.

The case arose from an ambitious plan to develop a world-class crude export terminal capable of receiving oil from the Permian Basin and Eagle Ford Shale, storing it in Aransas Pass, and loading it onto tankers at Harbor Island for shipment worldwide. To move the project forward, three brothers behind the venture retained Mr. Powers—a seasoned international investor and transactional lawyer—to help secure several hundred million dollars in financing and assist with the project’s ownership and management structure.

In 2019, the parties executed a compensation agreement under which Mr. Powers was to receive $100,000 per month plus expenses and an investment agreement providing Mr. Powers and his entity, Allied Ports LLC, a 20% ownership interest in the project once certain conditions were met. After the U.S. Army Corps of Engineers issued a critical federal permit in October 2024, disputes arose over ownership and control of Axis Midstream Holdings LLC, the entity holding the permitting rights, and over efforts Mr. Powers alleged were aimed at cutting him out of his bargained-for interest.

The case was transferred to the 11th Division of the Texas Business Court following early injunctive relief that prevented changes to management or control of the project entities before trial. Presiding Judge Sofia Adrogué oversaw what became the first jury trial in the statewide business court’s history. The litigation featured hundreds of docket entries, multiple interlocutory appeals, and extensive motion practice, precisely the type of complex, high-dollar commercial dispute the Business Court was designed to handle on an expedited basis.

After eight days of evidence and argument, the jury returned a 10–2 verdict for Mr. Powers on a detailed 20-question charge. The jury found that the defendants breached the 2019 investment agreement granting Mr. Powers a 20% ownership interest in the project and confirmed that the key signatories had authority to bind the family and project entities. The jury also rejected counterclaims that Mr. Powers had breached his fiduciary duties or failed to perform under the parties’ compensation and advisory arrangements.

This case marks a major milestone for the Texas Business Court, demonstrating that complex, multi-hundred-million-dollar disputes can be tried efficiently to a jury of citizens with diverse professional and educational backgrounds. It also sends a clear message that carefully negotiated investment and compensation agreements will be enforced according to their terms, even in long-running, technically complex infrastructure projects.

The result highlights Beck Redden’s experience in high-stakes commercial trials whether as lead counsel or in collaboration with national co-counsel and its experience in matters before the Texas Business Court. Congratulations to the trial team, including Beck Redden associate Jake McClellan, for their work on this significant case.