Acis Capital Management v. Dondero

Fifth Circuit

Acis Capital Management v. Dondero

Court of Appeals for the Fifth Circuit·Decided July 17, 2026·No. 25-10797·Unpublished

Opinion

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED July 17, 2026

No. 25-10797 ____________ Lyle W. Cayce Clerk

In the Matter of Acis Capital Management, L.P.; Acis Capital Management GP, L.L.C.,

Debtors,

Acis Capital Management, L.P.; Acis Capital Management GP, L.L.C.,

Appellants,

versus

James Dondero,

Appellee.

Appeal from the United States District Court for the Northern District of Texas USDC No. 3:24-CV-2036

Before Duncan, Oldham, and Wilson, Circuit Judges. Andrew S. Oldham, Circuit Judge: *

*

This opinion is not designated for publication. See 5th Cir. R. 47.5.

No. 25-10797

Joshua Terry, Highland Capital Management, and James Dondero have litigated Terry’s firing and the parties’ related financial fallout as if refighting the Hundred Years’ War. See, e.g., In re Acis Cap. Mgmt., L.P., 584 B.R. 115 (Bankr. N.D. Tex. 2018); In re Acis Cap. Mgmt., L.P., 600 B.R. 541 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., L.P., 604 B.R. 484 (N.D. Tex. 2019), aff’d, 850 F. App’x 302 (5th Cir. 2021) (per curiam); In re Acis Cap. Mgmt., L.P., 597 B.R. 327 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., L.P., 603 B.R. 300 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., G.P., L.L.C., 850 F. App’x 300 (5th Cir. 2021) (per curiam); In re Acis Cap. Mgmt., L.P., No. 18-30264-SGJ-11, 2024 WL 4500804 (Bankr. N.D. Tex. Oct. 15, 2024), report and recommendation adopted, No. 3:24-CV-02036-N, 2025 WL 565676 (N.D. Tex. Jan. 6, 2025); In re Acis Cap. Mgmt., L.P., No. 18-30264-SGJ-11, 2025 WL 313157 (Bankr. N.D. Tex. Jan. 27, 2025), report and recommendation adopted, No. 3:24-CV-02036-N, 2025 WL 2576689 (N.D. Tex. Apr. 23, 2025); In re Acis Cap. Mgmt. L.P., No. AP No. 20-3059, 2025 WL 1199386 (N.D. Tex. Apr. 24, 2025); Dondero v. Jernigan, No. 24- 10287, 2024 WL 4678879 (5th Cir. Nov. 5, 2024) (per curiam), opinion withdrawn and superseded on reh’g, No. 24-10287, 2025 WL 1122466 (5th Cir. Apr. 16, 2025) (per curiam), cert. denied, 146 S. Ct. 1516 (2026), reh’g denied, 146 S. Ct. 1791 (2026); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 2326350 (Bankr. N.D. Tex. June 7, 2021), aff’d in part, rev’d in part sub nom. Dondero v. Highland Cap. Mgmt., L.P., No. 3:21-CV-1590-N, 2022 WL 22839273 (N.D. Tex. Aug. 17, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., 105 F.4th 830 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-0132-E, 2021 WL 3772690 (N.D. Tex. Feb. 11, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2021 WL 2850562 (Bankr. N.D. Tex. July 7, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ- 11, 2021 WL 2881410 (Bankr. N.D. Tex. July 8, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2021 WL 7541482 (Bankr. N.D. Tex. July

No. 25-10797

14, 2021), report and recommendation adopted, No. 3:21-CV-1378-N, 2021 WL 7540340 (N.D. Tex. July 26, 2021); Highland Cap. Mgmt., L.P. v. Highland Cap. Mgmt. Servs., Inc., No. 3:21-CV-1378-N, 2021 WL 7540296 (N.D. Tex. Dec. 7, 2021); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 3418657 (Bankr. N.D. Tex. Aug. 4, 2021), aff’d in part, vacated in part sub nom. Charitable DAF Fund L.P. v. Highland Cap. Mgmt. L.P., No. 3:21- CV-01974-X, 2022 WL 4538466 (N.D. Tex. Sept. 28, 2022), vacated and remanded sub nom. In re Highland Cap. Mgmt., L.P., 98 F.4th 170 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 5769320 (Bankr. N.D. Tex. Dec. 3, 2021); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 38310 (Bankr. N.D. Tex. Jan. 4, 2022); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-1895-D, 2022 WL 270862 (N.D. Tex. Jan. 28, 2022), aff’d in part, appeal dismissed in part, 57 F.4th 494 (5th Cir. 2023); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-0879-K, 2022 WL 394760 (N.D. Tex. Feb. 9, 2022); In re Highland Cap. Mgmt., L.P., 643 B.R. 162 (N.D. Tex. 2022); In re Highland Cap. Mgmt. L.P., No. 3:22-CV-02802- B, 2023 WL 4190640 (Bankr. N.D. Tex. June 25, 2023), aff’d, No. 3:23-CV- 1503-B, 2024 WL 4139647 (N.D. Tex. Sept. 10, 2024); In re Highland Cap. Mgmt., L.P., No. 3:23-CV-1503-B, 2024 WL 4139647 (N.D. Tex. Sept. 10, 2024); Dondero v. Highland Cap. Mgmt. L.P., No. 3:20-CV-03390-X, 2022 WL 837208 (N.D. Tex. Mar. 18, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2022 WL 1050064 (Bankr. N.D. Tex. Apr. 6, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2022 WL 1457971 (N.D. Tex. May 9, 2022), aff’d, 74 F.4th 361 (5th Cir. 2023); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-3129-B, 2022 WL 2193000 (N.D. Tex. June 17, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 2826903 (Bankr. N.D. Tex. July 19, 2022), aff’d, 116 F.4th 422 (5th Cir. 2024); Dugaboy Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 3701720 (N.D. Tex. Aug. 8, 2022), aff’d sub nom. In re Highland

No. 25-10797

Cap. Mgmt., L.P., No. 22-10831, 2023 WL 2263022 (5th Cir. Feb. 28, 2023) (per curiam); In re Highland Cap. Mgmt., L.P., No. 21-10449, 2022 WL 3571094 (5th Cir. Aug. 19, 2022), opinion withdrawn and superseded on reh’g, 48 F.4th 419 (5th Cir. 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054- SGJ11, 2023 WL 2250145 (Bankr. N.D. Tex. Feb. 27, 2023), rev’d in part, 132 F.4th 353 (5th Cir. 2025); In re Highland Cap. Mgmt., L.P., 132 F.4th 353, 354 (5th Cir. 2025), cert. denied sub nom. Highland Cap. Mgmt. v. Nexpoint Advisors, No. 25-119, 2026 WL 1855094 (U.S. June 29, 2026); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 3959550 (Bankr. N.D. Tex. Aug. 30, 2022), aff’d sub nom. NexPoint Advisors, L.P. v. Highland Cap. Mgmt., L.P., No. 3:22-CV-2170-S, 2024 WL 847017 (N.D. Tex. Feb. 28, 2024), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 24-10267, 2024 WL 4986941 (5th Cir. Dec. 5, 2024) (per curiam); Dugaboy Inv. Tr. v. Highland Cap. Mgmt. L.P., No. 3:21-CV-01295-X, 2022 WL 4450490 (N.D. Tex. Sept. 22, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 22- 10983, 2023 WL 4842320 (5th Cir. July 28, 2023) (per curiam); Dugaboy Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 3:21-CV-261-L, 2022 WL 6281661 (N.D. Tex. Sept. 26, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 22-10960, 2023 WL 4861770 (5th Cir. July 31, 2023) (per curiam); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2022 WL 5219626 (Bankr. N.D. Tex. Sept. 30, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054- SGJ-11, 2023 WL 2395677 (Bankr. N.D. Tex. Mar. 6, 2023); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2023 WL 3185266 (Bankr. N.D. Tex. Apr. 28, 2023); In re Highland Cap. Mgmt., L.P., No. 3:22-CV-2051-B, 2023 WL 3575560 (N.D. Tex. May 18, 2023), aff’d, 102 F.4th 286 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2023 WL 4056065 (Bankr. N.D. Tex. June 16, 2023); Charitable DAF Fund, L.P. v. Highland Cap. Mgmt., L.P., No. 3:22-CV-2802-B, 2023 WL 4768188 (N.D. Tex. July 26, 2023); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11,

No. 25-10797

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United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED July 17, 2026

No. 25-10797 ____________ Lyle W. Cayce Clerk

In the Matter of Acis Capital Management, L.P.; Acis Capital Management GP, L.L.C.,

Debtors,

Acis Capital Management, L.P.; Acis Capital Management GP, L.L.C.,

Appellants,

versus

James Dondero,

Appellee.

Appeal from the United States District Court for the Northern District of Texas USDC No. 3:24-CV-2036

Before Duncan, Oldham, and Wilson, Circuit Judges. Andrew S. Oldham, Circuit Judge: *

*

This opinion is not designated for publication. See 5th Cir. R. 47.5.

No. 25-10797

Joshua Terry, Highland Capital Management, and James Dondero have litigated Terry’s firing and the parties’ related financial fallout as if refighting the Hundred Years’ War. See, e.g., In re Acis Cap. Mgmt., L.P., 584 B.R. 115 (Bankr. N.D. Tex. 2018); In re Acis Cap. Mgmt., L.P., 600 B.R. 541 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., L.P., 604 B.R. 484 (N.D. Tex. 2019), aff’d, 850 F. App’x 302 (5th Cir. 2021) (per curiam); In re Acis Cap. Mgmt., L.P., 597 B.R. 327 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., L.P., 603 B.R. 300 (Bankr. N.D. Tex. 2019); In re Acis Cap. Mgmt., G.P., L.L.C., 850 F. App’x 300 (5th Cir. 2021) (per curiam); In re Acis Cap. Mgmt., L.P., No. 18-30264-SGJ-11, 2024 WL 4500804 (Bankr. N.D. Tex. Oct. 15, 2024), report and recommendation adopted, No. 3:24-CV-02036-N, 2025 WL 565676 (N.D. Tex. Jan. 6, 2025); In re Acis Cap. Mgmt., L.P., No. 18-30264-SGJ-11, 2025 WL 313157 (Bankr. N.D. Tex. Jan. 27, 2025), report and recommendation adopted, No. 3:24-CV-02036-N, 2025 WL 2576689 (N.D. Tex. Apr. 23, 2025); In re Acis Cap. Mgmt. L.P., No. AP No. 20-3059, 2025 WL 1199386 (N.D. Tex. Apr. 24, 2025); Dondero v. Jernigan, No. 24- 10287, 2024 WL 4678879 (5th Cir. Nov. 5, 2024) (per curiam), opinion withdrawn and superseded on reh’g, No. 24-10287, 2025 WL 1122466 (5th Cir. Apr. 16, 2025) (per curiam), cert. denied, 146 S. Ct. 1516 (2026), reh’g denied, 146 S. Ct. 1791 (2026); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 2326350 (Bankr. N.D. Tex. June 7, 2021), aff’d in part, rev’d in part sub nom. Dondero v. Highland Cap. Mgmt., L.P., No. 3:21-CV-1590-N, 2022 WL 22839273 (N.D. Tex. Aug. 17, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., 105 F.4th 830 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-0132-E, 2021 WL 3772690 (N.D. Tex. Feb. 11, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2021 WL 2850562 (Bankr. N.D. Tex. July 7, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ- 11, 2021 WL 2881410 (Bankr. N.D. Tex. July 8, 2021); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2021 WL 7541482 (Bankr. N.D. Tex. July

No. 25-10797

14, 2021), report and recommendation adopted, No. 3:21-CV-1378-N, 2021 WL 7540340 (N.D. Tex. July 26, 2021); Highland Cap. Mgmt., L.P. v. Highland Cap. Mgmt. Servs., Inc., No. 3:21-CV-1378-N, 2021 WL 7540296 (N.D. Tex. Dec. 7, 2021); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 3418657 (Bankr. N.D. Tex. Aug. 4, 2021), aff’d in part, vacated in part sub nom. Charitable DAF Fund L.P. v. Highland Cap. Mgmt. L.P., No. 3:21- CV-01974-X, 2022 WL 4538466 (N.D. Tex. Sept. 28, 2022), vacated and remanded sub nom. In re Highland Cap. Mgmt., L.P., 98 F.4th 170 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2021 WL 5769320 (Bankr. N.D. Tex. Dec. 3, 2021); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 38310 (Bankr. N.D. Tex. Jan. 4, 2022); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-1895-D, 2022 WL 270862 (N.D. Tex. Jan. 28, 2022), aff’d in part, appeal dismissed in part, 57 F.4th 494 (5th Cir. 2023); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-0879-K, 2022 WL 394760 (N.D. Tex. Feb. 9, 2022); In re Highland Cap. Mgmt., L.P., 643 B.R. 162 (N.D. Tex. 2022); In re Highland Cap. Mgmt. L.P., No. 3:22-CV-02802- B, 2023 WL 4190640 (Bankr. N.D. Tex. June 25, 2023), aff’d, No. 3:23-CV- 1503-B, 2024 WL 4139647 (N.D. Tex. Sept. 10, 2024); In re Highland Cap. Mgmt., L.P., No. 3:23-CV-1503-B, 2024 WL 4139647 (N.D. Tex. Sept. 10, 2024); Dondero v. Highland Cap. Mgmt. L.P., No. 3:20-CV-03390-X, 2022 WL 837208 (N.D. Tex. Mar. 18, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2022 WL 1050064 (Bankr. N.D. Tex. Apr. 6, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2022 WL 1457971 (N.D. Tex. May 9, 2022), aff’d, 74 F.4th 361 (5th Cir. 2023); In re Highland Cap. Mgmt., L.P., No. 3:21-CV-3129-B, 2022 WL 2193000 (N.D. Tex. June 17, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 2826903 (Bankr. N.D. Tex. July 19, 2022), aff’d, 116 F.4th 422 (5th Cir. 2024); Dugaboy Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 3701720 (N.D. Tex. Aug. 8, 2022), aff’d sub nom. In re Highland

No. 25-10797

Cap. Mgmt., L.P., No. 22-10831, 2023 WL 2263022 (5th Cir. Feb. 28, 2023) (per curiam); In re Highland Cap. Mgmt., L.P., No. 21-10449, 2022 WL 3571094 (5th Cir. Aug. 19, 2022), opinion withdrawn and superseded on reh’g, 48 F.4th 419 (5th Cir. 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054- SGJ11, 2023 WL 2250145 (Bankr. N.D. Tex. Feb. 27, 2023), rev’d in part, 132 F.4th 353 (5th Cir. 2025); In re Highland Cap. Mgmt., L.P., 132 F.4th 353, 354 (5th Cir. 2025), cert. denied sub nom. Highland Cap. Mgmt. v. Nexpoint Advisors, No. 25-119, 2026 WL 1855094 (U.S. June 29, 2026); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2022 WL 3959550 (Bankr. N.D. Tex. Aug. 30, 2022), aff’d sub nom. NexPoint Advisors, L.P. v. Highland Cap. Mgmt., L.P., No. 3:22-CV-2170-S, 2024 WL 847017 (N.D. Tex. Feb. 28, 2024), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 24-10267, 2024 WL 4986941 (5th Cir. Dec. 5, 2024) (per curiam); Dugaboy Inv. Tr. v. Highland Cap. Mgmt. L.P., No. 3:21-CV-01295-X, 2022 WL 4450490 (N.D. Tex. Sept. 22, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 22- 10983, 2023 WL 4842320 (5th Cir. July 28, 2023) (per curiam); Dugaboy Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 3:21-CV-261-L, 2022 WL 6281661 (N.D. Tex. Sept. 26, 2022), aff’d sub nom. In re Highland Cap. Mgmt., L.P., No. 22-10960, 2023 WL 4861770 (5th Cir. July 31, 2023) (per curiam); In re Highland Cap. Mgmt. L.P., No. 19-34054-SGJ-11, 2022 WL 5219626 (Bankr. N.D. Tex. Sept. 30, 2022); In re Highland Cap. Mgmt., L.P., No. 19-34054- SGJ-11, 2023 WL 2395677 (Bankr. N.D. Tex. Mar. 6, 2023); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2023 WL 3185266 (Bankr. N.D. Tex. Apr. 28, 2023); In re Highland Cap. Mgmt., L.P., No. 3:22-CV-2051-B, 2023 WL 3575560 (N.D. Tex. May 18, 2023), aff’d, 102 F.4th 286 (5th Cir. 2024); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2023 WL 4056065 (Bankr. N.D. Tex. June 16, 2023); Charitable DAF Fund, L.P. v. Highland Cap. Mgmt., L.P., No. 3:22-CV-2802-B, 2023 WL 4768188 (N.D. Tex. July 26, 2023); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11,

No. 25-10797

2023 WL 5523949 (Bankr. N.D. Tex. Aug. 25, 2023); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2024 WL 959335 (Bankr. N.D. Tex. Mar. 5, 2024), aff’d sub nom. NexPoint Real Est. Partners, LLC v. Highland Cap. Mgmt., L.P., No. 3:24-CV-1479-S, 2025 WL 2697835 (N.D. Tex. Sept. 22, 2025); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ-11, 2024 WL 2703149 (Bankr. N.D. Tex. May 24, 2024), aff’d sub nom. Dugaboy Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 3:24-CV-1531-X, 2025 WL 2163271 (N.D. Tex. July 30, 2025), aff’d, No. 25-10999, 2026 WL 755100 (5th Cir. Mar. 17, 2026) (per curiam); NexPoint Advisors, L.P. v. Kirschner, Tr. of Litig. Sub-Tr., No. 3:22-CV-335-L, 2024 WL 3239927 (N.D. Tex. June 28, 2024); Highland Cap. Mgmt., L.P. v. NexPoint Asset Mgmt., L.P., No. 3:21-CV-0880-X, 2024 WL 5202496 (N.D. Tex. Dec. 23, 2024); Hunter Mountain Inv. Tr. v. Highland Cap. Mgmt., L.P., No. 3:24-CV-1787-L, 2024 WL 4606808 (N.D. Tex. Oct. 29, 2024); In re Highland Cap. Mgmt. L.P., No. AP 24-03073-SGJ, 2025 WL 97738 (Bankr. N.D. Tex. Jan. 14, 2025); In re Highland Cap. Mgmt., L.P., No. AP 24-03073-SGJ, 2025 WL 854623 (Bankr. N.D. Tex. Mar. 18, 2025); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2025 WL 2047279 (Bankr. N.D. Tex. July 21, 2025); NexPoint Real Est. Partners, LLC v. Highland Cap. Mgmt., L.P., No. 3:24-CV-1479-S, 2025 WL 2697835 (N.D. Tex. Sept. 22, 2025); In re Highland Cap. Mgmt. L.P., No. 3:25-CV-2579-B, 2025 WL 3470437 (N.D. Tex. Dec. 3, 2025); In re Highland Cap. Mgmt., L.P., No. 19-34054, 2026 WL 207954 (Bankr. N.D. Tex. Jan. 26, 2026); In re Highland Cap. Mgmt., L.P., No. 19-34054-SGJ11, 2026 WL 1728217 (Bankr. N.D. Tex. June 15, 2026).

The question presented is whether res judicata bars another round of litigation. It does. AFFIRMED. See 5th Cir. R. 47.6.

Acis Capital Management v. Dondero, (5th Cir. 2026).

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