Clapper v. American Realty Investors, No. 21-10805 (5th Cir. 2024)
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This case involved an appeal by David Clapper, who had filed a lawsuit against American Realty Investors, Inc., and other associated entities. Clapper alleged that these entities had transferred assets to avoid paying a judgment from a previous lawsuit, in violation of the Texas Uniform Fraudulent Transfers Act and the doctrine of alter ego liability. The jury had ruled in favor of the defendants, but Clapper appealed, asserting that the defendants' counsel had made multiple improper and prejudicial statements during the closing argument.
The United States Court of Appeals for the Fifth Circuit agreed with Clapper and found that the defendants' counsels' closing argument had indeed irreparably prejudiced the fairness of the trial. The court noted that the counsels had made several improper and highly prejudicial statements, including launching personal attacks against Clapper's counsel, making references to Clapper's wealth, discussing matters not in the record, appealing to local bias, and suggesting Clapper's bad motives. These statements were considered collectively and in the context of the trial.
The court reversed the decision of the district court and remanded the case for further proceedings. The court also highlighted the importance of civility in the practice of law, discouraging the use of abusive tactics and emphasizing the need for courtesy, candor, and cooperation in all lawyer-to-lawyer dealings.
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