The statement concerns a petition by several Executive Workspace entities against Reserve Capital-Preston Grove SPE, LLC raising a TUFTA question about terminating a contractual right to future payments.¹

The Fifth Court of Appeals resolved the questions largely by relying on federal Erie guesses and a patchwork of Texas court-of-appeals decisions; the Court denied the petition for review and on April 10, 2026 denied rehearing, with Justice Young's statement respecting the denial.¹

Motion for rehearing of the denial of a petition for review, denied, with a statement.²

Whether the termination of a contractual right to future payments may constitute a fraudulent "transfer" of an "asset" under TUFTA.¹

The statement does not summarize the parties' arguments; it notes the litigants in this Court relied on decisions from courts across the country.¹

Not applicable⁠—the petition was denied.

None noted

Reasoning

By Justice Young's count only eleven of the Court's opinions even mention TUFTA and about twenty Fifth Circuit cases have arisen since the Court last addressed it in 2019, so guidance is overdue.¹ Still, the Court's usual practice is to grant review when it will advance the State's jurisprudence as a whole, and because this case arises from a distinctive, highly fact-intensive record it may not generate broadly applicable guidance.²

Disposition

Motion for rehearing denied.

Vote Breakdown

Statement of Justice Young respecting the denial of rehearing.³