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Dick’s Last Resort of W. End, Inc. v. Mkt. Ross, Ltd – Case Brief Summary (Texas)

In Dick's Last Resort of W. End, Inc. v. Mkt. Ross, Ltd., 273 S.W.3d 905, 912 (Tex. App-Dallas 2008, pet. denied), three defendants, Schiff, Dick's Texas, and Dick's Holding Company, manipulated a lease signed by defendant Dick's Last Resort and guaranteed by defendant Dick's Chicago to avoid paying plaintiff Market/Ross one percent of Dick's Last Resort's gross sales as required by a provision in the lease if the lease was assigned before the term was up. Id. at 911-12.

The court of appeals found this evidence sufficient to pierce the corporate veil and hold Schiff, Dick's Texas, and Dick's Texas Holding Company liable for using Dick's Last Resort to evade an existing contractual obligation of Dick's Last Resort and Dick's Chicago to "pay rent for the full term of the lease and to make payment under the guaranty and the 1% provision." Id. at 912.