Missing Annual Franchise Tax Reports Can Have Big Consequences | Gray Reed
What about the alleged damages raised in the breach of contract dispute? Texas case law identifies two lines of legal reasoning in determining when a debt is “created or “incurred”. The first line of case law stands for the proposition that a debt is neither created nor incurred until it is reduced to a liquidated sum of money. In Cain v. State, 882 S.W.2d 515 (Tex. App. – Austin 1994, no writ), Lee Cain appealed a district court decision holding him personally liable for the debts of the Timber Creek Oil Company of which he was an officer and director. The Texas Railroad Commissio...
Source: jdsupra.com