The Texas Court of Appeals recently held that shareholders exercising their appraisal rights under Section 10.354(a) of the Texas Business Organizations Code are not entitled to a jury trial, because appraisal is specially created and controlled by statute. Pursuant to section 10.361(e) of the Code, the court determines which owners have perfected their appraisal rights and appoints an appraiser to determine the fair value of their ownership interest. If an objection to the report filed by the appraiser is raised, the court then must hold a hearing to determine the fair value under section 10.363(b). In Kruse v. Henderson Texas Bancshares, Inc., 2019 WL 4125966 (Tex. App. Aug. 30, 2019), the Court of Appeals reasoned that the term “hearing” suggests that the legislature intended to designate the court as the fact finder. We have previously posted about Texas appraisal rights here.

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