NexPoint Advisors v. Highland Capital Mgmt

Case: 24-10267 Document: 74-1 Page: 1 Date Filed: 12/05/2024

United States Court of Appeals for the Fifth Circuit

United States Court of Appeals

Fifth Circuit ____________ FILED

December 5, 2024 No. 24-10267 Lyle W. Cayce ____________ Clerk

In the Matter of Highland Capital Management, L.P.

Debtor. NexPoint Advisors, L.P.; Highland Capital Management Fund Advisors, L.P.,

Appellants, versus

Highland Capital Management, L.P.,

Appellee. ______________________________ Appeal from the United States District Court for the Northern District of Texas USDC No. 3:22-CV-2170

______________________________

Before Smith, Stewart, and Duncan, Circuit Judges.

Per Curiam: *

This appeal arises from the bankruptcy of Highland Capital Manage- ment, L.P. (“Highland”), an investment management firm. Before its bank- Case: 24-10267 Document: 74-1 Page: 2 Date Filed: 12/05/2024

No. 24-10267 ruptcy, the Highland complex included myriad sister firms. The appeal con- cerns a contract dispute between Highland and two of those firms, NexPoint Advisors, L.P., and Highland Capital Management Fund Advisors, L.P. (“the Advisors”). The Advisors, like Highland, are in the business of man- aging funds and providing investment advisory services.

The Advisors outsourced much of their back, middle, and front-office work to Highland through a series of contracts. The Advisors claimed that they overpaid on those contracts and that Highland breached. Highland, in turn, alleged that the Advisors breached by failing to make payments due under the contracts. The bankruptcy court ruled in favor of Highland, and the district court affirmed. The Advisors appeal.

We have reviewed the briefs, the record, the applicable law, and the oral arguments of counsel. Essentially for the reasons given by the bank- ruptcy and district courts, there is no reversible error. The judgment of the district court is AFFIRMED.