WP Liquidating, Ltd.; WPL-GP, LLC; And Robert N. Thompson v. Anthony Fenoglio
CourtTexas Court of Appeals, 11th District (Eastland)
Date FiledJuly 23, 2026
Docket11-25-00131-CV
StatusPublished
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Full Opinion
Opinion filed July 23, 2026
In The
Eleventh Court of Appeals
__________
No. 11-25-00131-CV
__________
WP LIQUIDATING, LTD.; WPL-GP, LLC; AND ROBERT N.
THOMPSON, Appellants
V.
ANTHONY FENOGLIO, Appellee
On Appeal from the 43rd District Court
Parker County, Texas
Trial Court Cause No. CV19-0938
OPINION
This case involves a limited partner’s suit to inspect the books and records
of the partnership. 1 Appellants, WP Liquidating, Ltd., (WPL); WPL-GP, LLC,
(WPL-GP); and Robert N. Thompson, appeal a summary judgment in favor of
Appellee, Anthony Fenoglio, enforcing his contractual and statutory rights as a
1
This appeal was transferred to this court from the Second Court of Appeals pursuant to a docket
equalization order issued by the Texas Supreme Court. TEX. GOV’T CODE ANN. § 73.001 (West Supp.
2025). Therefore, as the transferee court, we must decide the issues raised in this appeal in accordance with
the precedent of the Second Court of Appeals if its precedent conflicts with ours. See TEX. R. APP. P. 41.3.
limited partner to inspect WPL’s books and records. In four issues, which we
reframe in our opinion as two issues with sub-issues, Appellants argue that the trial
court erred: (1) in granting summary judgment because (a) there is a fact issue as to
whether Fenoglio had an improper purpose to inspect WPL’s records, (b) the
partnership agreement permits the general partner to condition inspection on
Fenoglio agreeing to keep the information confidential and limit use of the
information to his stated purpose, and (c) the trial court allowed Fenoglio to raise
new summary judgment grounds in a reply brief; as well as (2) in awarding Fenoglio
attorney’s fees and costs. We affirm the trial court’s judgment.
I. Factual and Procedural Background
WPL-GP entered into an agreement with its limited partners, including
Fenoglio, to create the limited partnership WPL. Thompson, WPL-GP, Fenoglio,
and other limited partners later entered into the Amended and Restated Partnership
Agreement of WPL (partnership agreement). WPL-GP, whose sole member is
Thompson, is the general partner of WPL. Fenoglio is a limited partner in WPL.
Section 7.1(a) of the partnership agreement provided:
The books and records of the Partnership shall, at the cost and expense
of the Partnership, be kept or caused to be kept at the principal place of
business of the Partnership, and shall be available for inspection by any
Partner. . . . The General Partner shall maintain the records required to
be kept pursuant to [Section] 153.551 of [the Texas Business
Organizations Code].
On December 7, 2018, Fenoglio made a written request to WPL for access to books
and records based on concerns that WPL-GP and Thompson were engaging in gross
negligence or willful misconduct in managing WPL. Fenoglio became concerned
after receiving a balance sheet that showed Thompson received distributions of
$7,029,170.83, while Fenoglio received $2,442,271.01, despite Fenoglio having
greater capital in WPL than Thompson. Fenoglio also received a shareholder
analysis that provided figures that were inconsistent with the balance sheet and that
2
failed to explain the disproportionate distributions. A few months later, a liquidity
event occurred involving the redemption of shares of stock in a corporation held by
WPL. Fenoglio later received a wire of funds from WPL, which he believed was
related to the conversion and redemption of the shares. Fenoglio claimed that he had
not received an accounting relating to these events.
Appellants responded to Fenoglio’s request to access WPL’s books and
records on January 4, 2019, by providing copies of correspondence relating to the
redemption of the shares. Fenoglio made four additional written requests to inspect
WPL’s books and records between February 27, 2019, and June 25, 2019 “for the
purpose of determining whether the assets of [WPL] have been properly managed
and whether the revenue and expenses of [WPL] have been properly accounted for
and . . . allocated.” Appellants did not grant any of these requests. Appellants
offered differing reasons for not allowing inspection: (1) asking whether Fenoglio’s
interest in WPL was transferred to his ex-wife in a divorce that was finalized in 2013;
(2) informing that the records contain proprietary and financial information
concerning other partners, necessitating that Fenoglio execute a confidentiality
agreement; and (3) suspicion that Fenoglio’s request was for the improper purpose
of using the information in litigation against WPL.
Appellants proposed a confidentiality agreement, which stated that everything
that Fenoglio requested constituted confidential information, while also requiring
that Fenoglio use the documents and records exclusively for the sole purpose of
determining whether the assets of WPL have been properly managed and whether
the revenue and expenses of WPL have been properly accounted for and allocated.
Appellants stated that WPL-GP, by way of Thompson, was acting pursuant to
Section 6.2 of the partnership agreement which stated that: “The General Partner
shall perform its duties . . . with ordinary prudence and in a manner characteristic of
a businessman in similar circumstances.” Fenoglio declined to sign the
3
confidentiality agreement and Appellants cited this refusal as an additional reason
for not allowing him access to WPL’s books and records.
Fenoglio filed suit on July 16, 2019, seeking to enforce his right to inspect
WPL’s books and records, while asserting causes of action for breach of the
partnership agreement and a violation of Section 153.522 of the Texas Business
Organizations Code. See TEX. BUS. ORGS. CODE ANN. § 153.552 (West Supp.
2025). 2 Appellants filed an answer, generally denying Fenoglio’s allegations and
specifically denying that Fenoglio was acting in good faith and had a proper purpose
for inspecting WPL’s books and records, as well as asserting his lack of good faith
and proper purpose as a defense. Appellants alleged that Fenoglio sought the books
and records for use in other litigation, to harass or harm WPL and its partners, and
in bad faith due to a “long, disagreeable relationship between the partners.”
Appellants filed a motion to transfer venue from Parker County to Denton County
on August 9, 2019. Following discovery disputes, the parties reached an agreement
in August 2020, whereby Appellants withdrew the motion to transfer venue and
Fenoglio declined to file a motion to compel discovery.
Fenoglio filed a combined traditional and no-evidence motion for summary
judgment on April 26, 2021. The motion was supported by the following evidence:
(1) Fenoglio’s affidavit; (2) the partnership agreement; (3) partnership records;
(4) Fenoglio’s divorce decree; and (5) the affidavits of David J. Goodman and
Levi M. Dillon, Fenoglio’s attorneys, with attached correspondence. Fenoglio
argued that under Section 7.1 of the partnership agreement, he had an absolute
contractual right to inspect and copy WPL’s books and records, which Appellants
continually breached by refusing Fenoglio’s request. Fenoglio also argued that,
2
Unless otherwise specified, all statutory references in this opinion are to the versions in effect
when the suit was filed in July 2019. See GOV’T § 311.022 (West 2013) (“A statute is presumed to be
prospective in its operation unless expressly made retrospective.”).
4
under Section 153.552 of Texas Business Organizations Code, he had a proper
purpose to inspect and copy WPL’s books and records, yet Appellants refused his
requests. Fenoglio claimed that he was entitled to reasonable attorney’s fees of
$120,570 and contingent appellate fees, pursuant to either Chapter 38 of the Texas
Civil Practice and Remedies Code or Section 153.5521 of the Texas Business
Organizations Code. See TEX. CIV. PRAC. & REM. CODE ANN. § 38.001–.006 (West
2015 & Supp. 2025); § BUS. ORGS. § 153.5521 (West 2020). For the no-evidence
portion of his motion, Fenoglio argued that Appellants had no evidence to support
their defense that Fenoglio’s request to inspect WPL’s books and records was denied
because it was made for an improper purpose.
Appellants filed a response to Fenoglio’s summary judgment motion,
supported by the following evidence: (1) Thompson’s declaration; (2) legal
documents from Fenoglio’s “Canadian Litigation”; (3) Fenoglio’s inspection request
dated February 27, 2019; (4) WPL’s letter requesting Fenoglio to limit disclosure
and only use the books and records for his stated purpose; and (5) the declarations
of WPL’s limited partners and accountant. Appellants argued that Fenoglio could
not prevail on his breach-of-contract claim because WPL-GP complied with its
contractual obligation under Section 6.2 of the partnership agreement to “perform
its duties . . . with ordinary prudence and in a manner characteristic of a businessman
in similar circumstances” by conditioning Fenoglio’s Section 7.1 inspection request
on his signing of a proposed confidentiality agreement. Appellants explained that
because Fenoglio could not prevail on his claim when the two provisions of the
partnership agreement were properly reconciled, there at least existed a fact issue in
this regard; and, alternatively, the two provisions showed an ambiguity in the
partnership agreement. Appellants argued that Texas appellate courts have held that
conditioning access to books and records upon an agreement that the information
will be kept confidential is reasonable. Appellants further maintained that there was
5
a fact issue as to whether Fenoglio had an improper purpose for inspecting WPL’s
books and records, citing the existence of a lawsuit by Fenoglio against Thompson.
Finally, Appellants argued that legal and factual issues precluded summary
judgment on Fenoglio’s request for attorney’s fees.
Fenoglio filed a reply to Appellants’ response and raised various objections
to Appellants’ summary-judgment evidence. Appellants filed an objection to, and
motion to strike, Fenoglio’s reply, alleging that it impermissibly raised new grounds
for summary judgment.
Following a hearing, during which the trial court stated it would not consider
any new summary judgment grounds contained in Fenoglio’s reply, it signed an
order granting Fenoglio’s traditional and no-evidence motion for summary
judgment, while leaving the attorney’s fees to be determined later. The parties filed
a joint motion for entry of final judgment “[t]o avoid the burden and expense of trial
and obtain entry of a final appealable judgment.” Pursuant to the parties’ agreement,
the trial court signed a final judgment, awarding $120,000 in attorney’s fees and
$296 in costs against WPL and WPL-GP, but not Thompson. This appeal ensued.
II. Partnership Records
In their first issue, Appellants argue that the trial court erred in granting
summary judgment on Fenoglio’s claims seeking inspection of WPL’s books and
records. Appellants argue that the trial court’s summary judgment ruling was
erroneous for three reasons: (1) there is a fact issue regarding whether Fenoglio had
an improper purpose for inspecting the books and records; (2) the partnership
agreement required the general partner to perform its duties with ordinary prudence,
which permits the general partner to condition inspection on Fenoglio agreeing to
keep the information confidential and limit use of the information to his stated
purpose; and (3) the trial court allowed Fenoglio to raise new summary judgment
grounds in a reply brief. We address each argument in turn.
6
A. Standard of Review
We review de novo the trial court’s ruling on a summary judgment motion.
Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005). A party
moving for traditional summary judgment bears the burden of proving that there is
no genuine issue of material fact and that it is entitled to judgment as a matter of law.
TEX. R. CIV. P. 166a(c). 3 A plaintiff movant must conclusively prove all essential
elements of its cause of action as a matter of law. Draughon v. Johnson, 631 S.W.3d
81, 87–88 (Tex. 2021). “Evidence is conclusive only if reasonable people could not
differ in their conclusions.” City of Keller v. Wilson, 168 S.W.3d 802, 816 (Tex.
2005). If the movant meets its burden, then the burden shifts to the non-movant to
present to the trial court any issues or evidence that would preclude summary
judgment. Duncan v. Hindy, 590 S.W.3d 713, 719 (Tex. App.—Eastland 2019, pet.
denied) (citing City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678–
79 (Tex. 1979)).
After an adequate time for discovery, a party may move for summary
judgment on the ground that there is no evidence of one or more essential elements
of a claim or defense on which an adverse party would have the burden of proof at
trial. TEX. R. CIV. P. 166a(i). We review a no-evidence motion for summary
judgment under the same legal sufficiency standard as a directed verdict.
Merriman v. XTO Energy, Inc., 407 S.W.3d 244, 248 (Tex. 2013). Under this
standard, the nonmovant has the burden to produce more than a scintilla of evidence
to support each challenged element of its claims. Id. Evidence is no more than a
3
We note that the Texas Supreme Court has recently revised Rule 166a. Although the “rewrite is
not intended to substantively change the law,” it has resulted in a renumbering of the provisions of the rule.
See Final Approval of Amendments to Rule 166a of the Texas Rules of Civil Procedure, Misc. Docket
No. 26-9012 (Tex. Feb. 27, 2026). The amendments to this rule only apply to motions for summary
judgment filed on or after March 1, 2026. Because Fenoglio’s motion for summary judgment in this case
was filed prior to that date, we refer to the rule in effect at the time the motion was filed. See id.
7
scintilla if it is “so weak as to do no more than create a mere surmise or suspicion”
of a fact. King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex. 2003) (quoting
Kindred v. Con/Chem, Inc., 650 S.W.2d 61, 63 (Tex. 1983)). Fenoglio moved for
no-evidence summary judgment on Appellants’ defense that Fenoglio had an
improper purpose for inspection, but we keep in mind that Fenoglio bore the ultimate
burden to establish a proper purpose by way of his traditional summary-judgment
motion. See Estate of Smith v. Ector Cnty. Appraisal Dist., 480 S.W.3d 796, 799
(Tex. App.—Eastland 2015, pet. denied) (explaining that only a party without the
burden of proof may move for no-evidence summary judgment).
B. Applicable Law
A partner has a statutory right to inspect the books and records of a limited
partnership. See Raider Ranch, LP v. Lugano, Ltd., 579 S.W.3d 131, 135 (Tex.
App.—Amarillo 2019, no pet.). Chapter 153 of the Texas Business Organizations
Code governs limited partnerships. BUS. ORGS. §§ 153.001–.555. Partnerships are
required to maintain certain records in their principal office. Id. § 153.551. While
Section 153.552(a) has been subject to multiple legislative iterations that do not
change the outcome of this appeal,4 as of the date of the trial court’s final judgment,
the right of a limited partner to inspect those records was as follows:
4
As noted above, all statutory references in this opinion are to the versions in effect when the suit
was filed in July 2019. GOV’T § 311.022. For reference, at the time of the requests and the filing of the
petition, effective January 1, 2006, the statute provided:
On written request stating a proper purpose, a partner or an assignee of a partnership
interest may examine and copy, in person or through a representative, records required to
be kept under Section 153.551 and other information regarding the business, affairs, and
financial condition of the limited partnership as is just and reasonable for the person to
examine and copy.
Act of May 13, 2003, 78th Leg., R.S., ch. 182, §§ 1, 17, 2003 Tex. Gen. Laws 267, 548, 597.
When the trial court entered its final judgment on March 27, 2025, the statute provided:
On written demand stating a proper purpose, a partner or an assignee of a partnership
interest in a limited partnership is entitled to examine and copy, at a reasonable time at the
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[O]n written demand stating a proper purpose, a partner or an assignee
of a partnership interest in a limited partnership is entitled to examine
and copy, at a reasonable time at the partnership’s principal office . . .
or other location approved by the partnership and the partner or
assignee, any records of the partnership, whether in written or other
tangible form, which are reasonably related to and appropriate to
examine and copy for that proper purpose.
Id. § 153.552(a), (b). Importantly, “a partnership agreement may not validly waive
or modify Section 153.551 or unreasonably restrict a partner’s right of access to
books and records under Section 153.552.” Id. § 153.004(a)(3).5 A partnership may
raise as a defense to an action to enforce the right of inspection that the limited
partner “was not acting in good faith or for a proper purpose in making the person’s
request for examination.” Id. § 153.5521(b)(2).
There is little case law interpreting a limited partner’s statutory inspection
rights, but similar provisions applying to corporations and other entities have been
examined often by Texas courts. See Gilbreath v. Horan, 682 S.W.3d 454, 477,
partnership's principal office identified under Section 153.551 or other location approved
by the partnership and the partner or assignee, any records of the partnership, whether in
written or other tangible form, which are reasonably related to and appropriate to examine
and copy for that proper purpose. Act of Apr. 28, 2023, 88th Leg., R.S., ch. 27, § 57, 2023
Tex. Gen. Laws 40, 54–55, 60 (eff. Sep. 1, 2023).
Subsequent to the trial court’s final judgment, the statute was amended again; effective May 14,
2025, and, in relevant part, currently provides:
Unless otherwise provided by the governing documents of a limited partnership, on written
demand stating a proper purpose, a partner or an assignee of a partnership interest in a
limited partnership is entitled to examine and copy, at a reasonable time at the partnership’s
principal office . . . or other location approved by the partnership and the partner or
assignee, any records of the partnership, whether in written or other tangible form, which
are reasonably related to and appropriate to examine and copy for that proper purpose.
BUS. ORGS. § 153.552.
5
This reflects the version of the statute in place at the time that Fenoglio filed his petition in the
trial court. Before the trial court signed its final judgment in the matter, the statute had been amended to
read: “a partnership agreement may not validly waive or modify Section 153.551 or unreasonably restrict
a partner’s or assignee’s rights under Section 153.552.” Neither version would have changed the result of
our opinion.
9
526–27 (Tex. App.—Houston [1st Dist.] 2023, pet. denied) (holding that there is
some evidence that a partner requested access for a proper purpose—the purpose of
conducting a forensic audit to make sure the business and finances were being
properly managed). Like a limited partner, “[a] shareholder enjoys the right to
examine and copy certain records of the corporation in which the shareholder owns
shares.” In re Elusive Holdings, Inc., 641 S.W.3d 498, 501 (Tex. App.—Austin
2021, orig. proceeding). “That right exists by statute, and at common law.” Id.
(internal citations omitted). It may be enforced by a civil suit that “is generally
regulated by the same rules of procedure as other civil actions.” Id. (quoting Uvalde
Rock Asphalt Co. v. Loughridge, 425 S.W.2d 818, 820 (Tex. 1968) (orig.
proceeding)). Similar to the law governing limited partnerships, Section 21.218(b)
conditions a shareholder’s inspection right on stating a “proper purpose” for the
request, and Section 21.222(b)(4) allows corporations to assert an improper purpose
defense. See BUS. ORGS. §§ 21.218(b), .222(b)(4). Where confidential records are
at issue, trial courts may enter protective orders limiting disclosure. See, e.g.,
Gaughan v. Nat’l Cutting Horse Ass’n, 351 S.W.3d 408, 420 (Tex. App.—Fort
Worth 2011, pet. denied); Citizens Ass’n for Sound Energy v. Boltz, 886 S.W.2d 283,
287 (Tex. App.—Amarillo 1994, writ denied); Prof’l Microfilming, Inc. v. Houston,
661 S.W.2d 767, 770 (Tex. App.—Fort Worth 1983, no writ).
Investigating suspected financial mismanagement and protecting investment
in the business by evaluating share value are proper purposes for an inspection. See,
e.g., Chavco Inv. Co., Inc. v. Pybus, 613 S.W.2d 806, 808 (Tex. App.—Houston
[14th Dist.] 1981, writ ref’d n.r.e.) (concluding that a proper purpose was present for
a shareholder wishing “to determine whether the rental on a building, the principal
asset of the corporation, was a reasonable rental or whether the rental was so
unreasonably low as to result in corporate waste”); Biolustre’ Inc. v. Hair Ventures
LLC, No. 04-10-00360-CV, 2011 WL 540574, at *3 (Tex. App.—San Antonio
10
Feb. 16, 2011, no pet.) (mem. op.) (“In view of Hair Ventures’s substantial
investment and interest in the company, obtaining information about the financial
position of the company and its proposed public offering was a proper purpose for
inspecting the records.”).
In the context of summary judgment, once a plaintiff establishes that (1) they
have a statutory right to inspection, (2) they have asserted that right, (3) the request
is for a proper purpose, and (4) the business entity denied the request, the burden
then shifts to the defendant to “allege specific facts showing [the] lack of proper
purpose[, or that it is pretext for an improper purpose,] and support those allegations
with summary judgment evidence.” Boltz, 886 S.W.2d at 289–90 (applying a similar
statute governing a member’s right to inspection of a nonprofit corporation’s
records). To show an improper purpose, the party invoking the defense must
establish by proof “a state of facts sufficient to convince the court that the
stockholder is not seeking the information which might be revealed by the desired
inspection for the protection of his interest as a stockholder, or that of the
corporation, but that he is actuated by corrupt or unlawful motives.” Moore v. Rock
Creek Oil Corp., 59 S.W.2d 815, 818 (Tex. Comm’n App. 1933); see also Third
Eye, Inc. v. UST Glob. Inc., No. 05-22-00334-CV, 2023 WL 3243482, at *3 (Tex.
App.—Dallas May 4, 2023, pet. denied) (mem. op.). Evidence showing that a
request was made to obtain an advantage in an area in which the requestor is a
business competitor and to continue a program of harassment of the business entity
is sufficient to raise a fact issue as to whether an improper purpose exists. See
Uvalde Rock, 425 S.W.2d at 819–20; see also Elusive Holdings, 641 S.W.3d at 503
(concluding that there was a fact issue regarding improper purpose where there was
evidence that the requestor had taken and refused to return corporate documents and
usurped the corporation’s business opportunities for his new business); In re Dyer
Custom Installation, Inc., 133 S.W.3d 878, 882–83 (Tex. App.—Dallas 2004, orig.
11
proceeding) (concluding that testimony that the requestor, while serving as president
of the corporation, made improper cash payments to himself and others, failed to
maintain financial records, engaged in conduct detrimental to the company, and
threatened to put the company out of business was sufficient to raise a fact issue as
to improper purpose).
Conversely, “[t]he mere fact that stockholders seeking an inspection are on
unfriendly terms with the company is no ground for denying their statutory right of
inspection of the books of the corporation.” Moore 59 S.W.2d at 818 (collecting
cases). “Nor is it any reason for denying such examination that plaintiffs in error
hope to find something alarming in the affairs of the company, which they intend to
communicate to other stockholders.” Id. And “[c]onclusionary statements such as
the existence of bad faith, improper purpose, or a disagreeable relationship, are not
sufficient to raise a fact issue.” Chavco, 613 S.W.2d at 809; see also Boltz, 886
S.W.2d at 289 (“antagonism” or “hostility” between shareholder and corporation
does not demonstrate an improper purpose); Shioleno v. Sandpiper Condos. Council
of Owners, Inc., No. 13-07-00312-CV, 2008 WL 2764530, at *4, *6 n.14 (Tex.
App.—Corpus Christi–Edinburg July 17, 2008, no pet.) (mem. op.) (concluding that
the corporation did not plead or present evidence of any lack of proper purpose).
Otherwise, “a corporation that desired to defeat the right of its stockholders to
inspect the books, could do so by alleging the ‘magic words’ that the stockholder
had ‘improper purposes for wanting to inspect the books.’” Chavco, 613 S.W.2d at
809–10.
C. Statutory Claim – Improper Purpose
Appellants do not appear to challenge whether Fenoglio properly invoked his
statutory right to inspection, but they argue that they presented evidence raising a
genuine issue of material fact as to whether Fenoglio had an improper purpose for
his request. They cite evidence that they contend shows that Fenoglio was
12
attempting to force Thompson to purchase Fenoglio’s interest in WPL and other
entities. Appellants also contend the evidence shows that Fenoglio seeks to use the
inspection to harm WPL in Fenoglio’s Canadian litigation or to violate the privacy
rights of other limited partners. Appellants further assert that “[t]he mere fact that
Fenoglio has refused to limit his use of the information to his Stated Purpose
illustrates that his true intentions include something beyond the Stated Purpose” and
case law permits “conditioning access to books and records upon confidentiality and
use for a limited purpose.” Fenoglio responds that many of Appellants’ assertions
are not supported by the evidence, and that the evidence does not otherwise raise a
fact issue on the existence of an improper purpose.
Appellants point to the following categories of evidence that they contend
creates a fact issue regarding improper purpose: (1) Fenoglio’s communication with
Thompson regarding the sale of Fenoglio’s various business interests; (2) potential
use of WPL records in the Canadian litigation; and (3) Fenoglio’s refusal to sign the
confidentiality agreement. The evidence shows that Fenoglio, through counsel
sought clarification on what interests in certain companies that Thompson was
proposing to purchase (none of which were WPL); there is no evidence these
communications were an attempt to force Thompson to purchase his interests.
Further, WPL is not a party to the Canadian Litigation. In reviewing the causes of
action in the Canadian litigation, none appear to be based on any transactions of
WPL.
At best, this evidence demonstrates that Fenoglio may be on unfriendly terms
with WPL, or that he might hope to find something alarming in the affairs of WPL.
See Moore, 59 S.W.2d at 818. There is no evidence that: Fenoglio sought to use the
information to gain an advantage as a business competitor with WPL; he had
engaged in a program of harassment; he had usurped WPL’s business opportunities;
or he had otherwise engaged in conduct detrimental to WPL’s operations. See, e.g.,
13
Uvalde Rock, 425 S.W.2d at 819–20; Elusive Holdings, 641 S.W.3d at 503; Dyer
Custom Installation, 133 S.W.3d at 882–83. Without a similar quantum of evidence,
Appellants’ statements regarding Fenoglio’s improper purpose amounted to no more
than conclusory allegations of “the existence of bad faith, improper purpose, or a
disagreeable relationship, [which is] not sufficient to raise a fact issue.” See Chavco,
613 S.W.2d at 809.
Further, Fenoglio’s refusal to condition his inspection upon signing WPL’s
proposed confidentiality agreement is not evidence of an improper purpose. While
Appellants argue that WPL is permitted to impose reasonable restrictions on
Fenoglio’s inspection rights, the cases they cite do not demonstrate that a partnership
may demand a confidentiality agreement as a condition of disclosure; but rather, that
a trial court may issue a protective order if it determines one is needed for the
purposes put forth by Appellants. See, e.g., Gaughan, 351 S.W.3d at 420; Boltz, 886
S.W.2d at 287; Prof’l Microfilming, 661 S.W.2d at 770. And Appellants do not
argue on appeal that the trial court erred by not entering such an order. 6 See Mack
Trucks, Inc. v. Tamez, 206 S.W.3d 572, 577 (Tex. 2006) (“Except for fundamental
error, appellate courts are not authorized to consider issues not properly raised by
the parties.”).
For the foregoing reasons, we conclude that the trial court did not err in
concluding that Fenoglio was entitled to summary judgment on his statutory claim.
6
Appellants argued in the trial court that a protective order should issue only “if a jury ultimately
decides that, despite the evidence to the contrary, Fenoglio has a proper purpose for examining [WPL’s]
books and records.” Additionally, in their reply brief, Appellants argue for the first time that there is a fact
issue whether their restrictions are reasonable. McAlester Fuel Co. v. Smith Int’l, Inc., 257 S.W.3d 732,
737 (Tex. App.—Houston [1st Dist.] 2007, pet. denied) (“An issue raised for the first time in a reply brief
is ordinarily waived and need not be considered by this Court.”).
14
D. Breach of the Partnership Agreement
Next, Appellants argue that the trial court erred in granting summary
judgment on Fenoglio’s claim for their breach of the partnership agreement because
that agreement requires the general partner to act with ordinary prudence and in his
sole discretion, which he did by requiring Fenoglio to sign a confidentiality
agreement as a condition of inspection of the partnership’s books and records.
Appellants maintain that the issue of ordinary prudence presents a fact issue for the
jury to decide, or alternatively, the inspection provision and ordinary prudence
provision present an ambiguity creating a fact issue.
As previously set out, “a partnership agreement may not validly waive or
modify Section 153.551 or unreasonably restrict a partner’s right of access to books
and records under Section 153.552.” BUS. ORGS. § 153.004(a)(3). Logically, the
inverse of this language implies that a partnership agreement may place reasonable
restriction on a partner’s statutory inspection right. See id. Here, Section 7.1(a) of
the partnership agreement does not appear to explicitly impose any restrictions,
reasonable or otherwise. That section merely states that such records “shall be
available for inspection by any Partner.” Further, as discussed above, Appellants
rely on authority that a trial court may exercise its discretion in crafting an
appropriate protective order, once a suit is filed. See, e.g., Gaughan, 351 S.W.3d at
420; Boltz, 886 S.W.2d at 287; Prof’l Microfilming, 661 S.W.2d at 770. Consistent
with the broad inspection rights afforded by statute, which a partnership agreement
cannot unreasonably restrict, we believe the better practice is to place these concerns
with the trial court and not with the discretionary powers of the general partner as
set out in a partnership agreement. However, in the exercise of judicial restraint, we
decline to conclusively decide this sub-issue. “In cases in which the judgment rests
on multiple theories of recovery, an appellate court need not address all causes of
action if any one theory is valid.” Super Ventures, Inc. v. Chaudhry, 501 S.W.3d
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121, 135 (Tex. App.—Fort Worth 2016, no pet.); see Estate of Ewers, 695 S.W.3d
603, 643 (Tex. App.—Houston [1st Dist.] 2024, no pet.); EMC Mortg. Corp. v.
Jones, 252 S.W.3d 857, 870 (Tex. App.—Dallas 2008, no pet.). Given our
conclusion that the trial court’s final judgment is supported by Fenoglio’s
statutory claim, our resolution of this argument would not be dispositive. See
TEX. R. APP. P. 47.1; Chaudhry, 501 S.W.3d at 135.
E. Untimely Summary Judgment Grounds
Next, we address Appellants’ argument that the trial court may have relied on
the following untimely theories asserted by Fenoglio in his reply in support of his
summary judgment motion: (1) the confidentiality agreement was void because it
was exculpatory in nature; (2) Section 6.2 was unenforceable as it pertained to the
statutory right to inspection; and (3) WPL-GP was liable for attorney’s fees under
the theory that a general partner of a limited partnership has the liability of a partner
in a general partnership.
A summary judgment motion “must stand or fall on the grounds expressly
presented in the motion.” Neeley v. Lyft, Inc., 731 S.W.3d 110, 128 (Tex. App.—
Eastland 2026, no pet.) (quoting McConnell v. Southside Indep. Sch. Dist., 858
S.W.2d 337, 341 (Tex. 1993)). Accordingly, a party moving for summary judgment
may not wait to raise a new issue or ground for granting summary judgment in its
reply. See Yeske v. Piazza Del Arte, Inc., 513 S.W.3d 652, 672 n.5 (Tex. App.—
Houston [14th Dist.] 2016, no pet.). Even assuming that Fenoglio’s reply arguments
raised new grounds for granting summary judgment, there is no indication that the
trial court based its summary judgment ruling on these new grounds; in fact, it
expressly disclaimed any intent to do so. Regardless, this court has not relied on
those arguments in addressing the merits of the trial court’s judgment. When, as
here, “a trial court’s order granting summary judgment does not specify the grounds
relied upon, the reviewing court must affirm summary judgment if any of the
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summary judgment grounds are meritorious.” FM Props. Operating Co. v. City of
Austin, 22 S.W.3d 868, 872 (Tex. 2000).
We overrule Appellants’ first issue.
III. Attorney’s Fees
In their second issue, Appellants argue that the trial court erred in awarding
attorney’s fees. Appellants explain that Section 38.001 of the Texas Civil Practice
and Remedies Code does not allow for the recovery of attorney’s fees against limited
partnerships in lawsuits filed prior to September 1, 2021, and the trial court erred in
granting summary judgment on all grounds that would support an award of
attorney’s fees. Fenoglio concedes that he is not entitled to attorney’s fees for his
breach-of-contract claim, but he asserts that attorney’s fees are proper for his
successful statutory inspection claim.
Section 153.5521 of the Texas Business Organizations Code provides for the
recovery of attorney’s fees for a successful suit to enforce the statutory right to
inspection. BUS. ORGS. § 153.5521(a). Because we have affirmed summary
judgment on Fenoglio’s statutory claim and therefore rejected Appellants’ improper
purpose argument, and Appellants do not otherwise contest the award of fees for that
claim, we overrule Appellants’ second issue.
IV. This Court’s Ruling
We affirm the trial court’s judgment.
W. BRUCE WILLIAMS
JUSTICE
July 23, 2026
Panel consists of: Bailey, C.J.,
Trotter, J., and Williams, J.
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