Texas Appeals Court Reverses Whitestone REIT CEO Termination

Justice Tonya McLaughlin, writing for the court alongside Justices Kevin Jewell and Maritza Antu, found that the real estate investment trust failed to link its stated reasons for the 2022 firing to the specific provisions of Mastandrea’s employment contract. Mastandrea, who joined the firm in 2006, argued that his removal was driven by personal vendettas held by board members rather than professional misconduct.

During his tenure, Mastandrea oversaw the company’s transition from a small, non-traded entity to a NYSE-listed firm. Under his leadership, the REIT’s portfolio grew by more than 500% to $1.1 billion, while quarterly net income climbed nearly 400% to $2.9 million. Following his departure and a subsequent proxy campaign, the company was taken private in a $1.7 billion transaction last year.

The litigation now returns to the Harris County Civil District Court. Mastandrea, represented by legal counsel including Andy Taylor and Mike O’Brien, intends to seek monetary damages for what his team describes as a wrongful termination. The court’s decision marks a significant reversal for the REIT, which had successfully defended the firing at the trial level until this appeal.