The Public Utility Commission of Texas somehow found that the Windermere Oaks Water Supply Corporation did not demonstrate that its rate increase in 2020, for the legal fees needed to defend the corporation and eight directors from lawsuits, were “just and reasonable.”
In other words, everyone has a right to a legal defense except, apparently, the WOWSC and its volunteer directors. We, apparently, should have found some other way to pay for them other than using the revenues of the corporation. (We eventually did win a $678,000 payment from the insurance company in 2023, but that win could not be considered as part of the PUC’s case. Go figure.)
Anyway, obviously I disagree with the PUC’s position. It flies in the face of Texas Business Code Chapter 8 which explicitly requires corporations pay the defense of directors unless they are found guilty of crimes or ultra vires acts. You can read about Chapter 8 in this document, taken directly from our prevailing brief in an underlying lawsuit.
The PUC apparently has its own sense of what is legal, and they are in disagreement with the Texas Legislature. I guess the PUC is really the lawmaking body of Texas.
As such I have been going to the PUC meetings since December and making public comment. The four videos below are my comments. Enjoy.