Highland’s attorney, John Morris, countered, asserting that Highland’s management was in charge of both companies, including CFO Frank Waterhouse, who signed all the reimbursement agreements. Waterhouse, who is still involved with NexPoint, approved payments despite knowing the status of the employees. Morris emphasized that NexPoint received the services they paid for and that Highland was not in breach of contract.
The legal battle escalated when Highland filed for Chapter 11 protection just ahead of a Delaware court hearing on a significant arbitration award. Highland argued that it continued providing services under the terms of the agreements, and NexPoint’s claim for reimbursement was unjust.
The bankruptcy court ruled that Highland had not breached its contract and found that NexPoint owed Highland $2.6 million for the services rendered. As the case proceeds, NexPoint’s attorneys will continue their appeal, attempting to overturn this ruling in the Fifth Circuit.
The panel reviewing the case included Judges Jerry E. Smith, Carl E. Stewart, and Stuart Kyle Duncan.
