It ain’t easy being a judge

Academy of Skills & Knowledge v. Charter Schools USA, Inc. (Published): Multi-faceted dispute between a charter school and a management company.  The Tyler court earns its pay by working through every one of them.  Here are the basics:

Neither side can use CSUSA’s wholly-owned subsidiary to advantage.  CSUSA created a subsidiary specifically for this school.  ASK’s contract was with the subsidiary.  ASK tries to get to CSUSA via the “single business enterprise” theory.  No dice.  Then CSUSA takes a roll — they want a judgment in their name for the management fees that, by contract, ASK owed to the subsidiary.  Snake eyes.

ASK’s failure to prove that CSUSA breached a management contract dooms any complaints ASK has about the trial court’s dismissal of categories of contract damages.

ASK’s non-contract claims are scuppered by the economic loss rule.

CSUSA’s “advances” to ASK were nothing more than loans.  Loans by a charter school management company to a school are prohibited by Tex. Educ. Code Ann. § 12.124(a) (Vernon 2006).  CSUSA got a judgment for them at the trial level.  That judgment is tossed by the Tyler court.

Neither side gets anything. 

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