Sports Showdown in Dallas: Texas Business Court Referees Redemption Dispute Between the Mavericks and Stars

Short summary

A Texas Business Court upheld the Dallas Mavericks' redemption of the Dallas Stars' 50% arena ownership interests for $110, ruling that a nonwaiver clause protected the Mavericks' rights despite 21 years of inaction. The court emphasized that defined contract terms must be honored as written and that redemption can occur without formal board action in deadlock situations. The decision provides guidance on contract interpretation and joint venture structures.

• •Nonwaiver clauses protect redemption rights even after lengthy periods of inaction
• •Defined contract terms must be interpreted as written without judicial rewriting
• •Redemption can be triggered by a remaining partner without formal corporate board approval

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