AUSTIN, Texas, Dec. 9 /PRNewswire/ -- Feazell-Tighe, LLP today announced that iValue Group, Inc. has filed a petition for review with the Texas Supreme Court seeking to reverse two recent opinions by the El Paso Court of Appeals, opinions that rewrite Texas damages law to effectively preclude any tortiously destroyed new business from recovering any damages. Under the El Paso Court of Appeals's ruling, a "new and unproven" business that has been tortiously destroyed in its infancy cannot recover forward-looking damages because "any forecast of future revenues is speculative." At the same time, however, the court of appeals also declared that the same destroyed business cannot put on legally sufficient evidence to support its backward-looking start-up costs without first showing it would have generated a nonspeculative future profit, which the business - under the court's circular logic - cannot do because the business was "new and unproven."

"Those rulings essentially declare open season on newly formed businesses in Texas," says Vic Feazell, attorney for Petitioner iValue Group, Inc. "They send the message that in Texas, newly formed businesses can be destroyed with impunity, and they will have no recourse to recover any damages if the culprit who caused their destruction did so prior to the destroyed business turning a profit. This has never been the law in Texas, and we are confident the Texas Supreme Court will review this case and reverse the El Paso court. If these opinions are left to stand, they will have far-reaching consequences for damages law in Texas, as well as shareholder rights, property rights, innovation, economic development and growth," he added.

A panel of three justices from the El Paso Court of Appeals, consisting of Justices Rivera, Chew and McClure, rendered the 2 opinions, authored by Justice Rivera, following a trial in which the jury found unanimously in favor of petitioner iValue and its 80 shareholders. The defendant, M&A Technology, Inc.(M&A), a Carrollton-based computer manufacturer and hosting services provider currently run by its founder and President, Magdy Salah Elwany, was ordered to pay iValue $3 million in actual damages and $6 million in punitive damages, as well as pre- and post-judgment interest. The jury unanimously found that:

(a) M&A had committed theft;

(b) M&A had converted iValue's property;

(c) M&A breached its agreement with iValue; and

(d) M&A acted with malice (by clear and convincing evidence.)

The jury rejected all of M&A's counter-claims, and on appeal M&A did not challenge any of the findings of tortuous conduct or malice against it. Copies of the jury verdict and judgment can be found by clicking here: http://s1008981.cp.webhostmanage.com/

"The El Paso Court of Appeals has created a terrible incentive for tortious conduct - not even contested on appeal in this case - by rewarding early strikes against potential competitors with what is essentially a form of immunity," said Julian Ross, founder of iValue. "While it is patently unjust and immoral, strictly on the law it is untenable and unworkable. Venture Capital companies pour billions of dollars into startup companies every year, and most have yet to turn a profit at the time of the VC investment. If these companies can be tortiously destroyed without recourse, these venture capital firms will take their businesses out of Texas. Moreover, the state of Texas has poured hundreds of millions of dollars into newly formed companies through initiatives such as the Emerging Technology Fund (ETF). The ETF and other similar initiatives are dedicated to developing emerging technology and innovative companies, and these newly formed companies often have long development or regulatory cycles, and do not earn profits for extended periods of time. The El Paso court's opinions place all such companies at risk. The decisions also undermine all the hard work and efforts that have been dedicated to moving Texas forward as a state that embraces economic development, technology and innovation, while at the same time protecting the rights of shareholders and property owners."

"iValue's appellate efforts are led by Gregory S. Coleman from Yetter, Warden & Coleman," announced Vic Feazell. "We are pleased that Mr. Coleman is leading this crucial effort to reverse this unprecedented and unjustified legal error. I couldn't think of a more stellar legal mind for this effort."

To view a copy of iValue's petition to the Texas Supreme Court, please click here: http://s1008981.cp.webhostmanage.com/

About Yetter, Warden & Coleman, LLP

Yetter, Warden & Coleman is a business and technology litigation firm with offices in Austin and Houston. The firm provides the highest quality legal services in the preparation, trial and appeal of complex commercial cases. The firm represents both plaintiffs and defendants in contract, business tort, IP, securities and antitrust matters. http://www.ywcllp.com

About Feazell-Tighe, LLP

Feazell-Tighe, LLP is an Austin-based trial law firm focused on Commercial and Business Disputes, Class Action Lawsuits, Sexual Harassment & Discrimination, Whistleblower & False Claims Act Lawsuits, Insurance Litigation and Personal Injury. Founded by alumni of larger firms, Feazell-Tighe, LLP offers the flexible and cooperative atmosphere of a small firm while engaging in a statewide, and in many cases nationwide, practice involving substantial and challenging legal issues more typically associated with larger firms. www.Feazell-Tighe.com

SOURCE Feazell-Tighe, LLP

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