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.
