(a) A person may recover damages, court costs, and reasonable attorney’s fees if the person incurs a loss and:
(1) the loss is caused by a:
(A) forged filing instrument; or
(B) filed filing instrument that constitutes an offense under § 4.008; or
(2) the person reasonably relies on:
(A) a false statement of material fact in a filed filing instrument; or
(B) the omission in a filed filing instrument of a material fact required by this code to be included in the instrument.
(b) A person may recover under Subsection (a) from:
(1) each person who forged the forged filing instrument or signed the filing instrument and knew when the instrument was signed of the false statement or omission;
(2) any managerial official of the entity who directed the signing and filing of the filing instrument who knew or should have known when the instrument was signed or filed of the false statement or omission; or
(3) the entity that authorizes the filing of the filing instrument.

Terms Used In Texas Business Organizations Code 4.007

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Entity: means a domestic entity or foreign entity. See Texas Business Organizations Code 1.002
  • Filing instrument: means an instrument, document, consent, or statement that is required or authorized by this code to be filed by or for an entity with the filing officer in accordance with Chapter 4. See Texas Business Organizations Code 1.002
  • Managerial official: means an officer or a governing person. See Texas Business Organizations Code 1.002
  • Person: means an individual or a corporation, partnership, limited liability company, business trust, trust, association, or other organization, estate, government or governmental subdivision or agency, or other legal entity, or a protected series or registered series of a domestic limited liability company or foreign entity. See Texas Business Organizations Code 1.002
  • Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
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