RSS Rail Signal Systems Corporation and John Cummings v. Carter Stafford Arnett Hamada & Mockler, PLLC

OPINION

ANN CRAWFORD McCLURE, Chief Justice.

RSS Rail Signal Systems Corporation and John Cummings appeal from an order of the trial court approving settlement and disbursement of settlement proceeds. For the reasons that follow, we reverse and render.

FACTUAL SUMMARY

This dispute arises out of a state court suit, a federal court suit, settlement agreements entered in both cases, and the appointment of a receiver by the state court. On April 7, 2010, RSS Rail Signal Systems Corporation and John Cummings (collectively RSS) filed suit in the 193rd District Court of Dallas County against Sky King.…