Hughes v. St. David's Support Corp.

KIDD, Justice.

This appeal presents us with the question of whether a general partner owes a fiduciary duty of notice to its limited partners when it sells assets under its control. Because we conclude that such a duty exists, we will reverse the trial court’s summary judgment and remand the cause for a trial on the merits.

BACKGROUND

The St. David’s Health Care System, Inc., (the “System”) is a nonprofit corporation that operates St. David’s Medical Center in Austin, a complex that includes St. David’s Hospital. The System is the sole shareholder of appellee, St. David’s Support Corporation…