L&S Pro-Line, LLC and Lee Burkett v. Garrett Gagliano, Snook Holdings, LLC, and Tactical Automation, Inc.
This case involves a business dispute of a two-member Texas limited liability company, L&S Pro-Line (L&S). Appellants, L&S and Lee Burkett, appealed the trial court’s judgments for Appellees Garrett Gagliano, Snook Holdings, LLC, and Tactical Automation, Inc. The core issues included Burkett's attempt to purchase Gagliano's membership interest under the Company Agreement and Tactical Automation's standing as a third-party beneficiary. The Court of Appeals concluded that Burkett effectively exercised his option to buy Gagliano's interest and that Tactical Automation was not an intended third-party beneficiary. The court affirmed certain portions, reversed and rendered others (particularly concerning breach of contract and Tactical's damages), and reversed and remanded for further proceedings on issues like breach of fiduciary duty prior to the effective buyout.