Beach house investors sue to recover funds

Michelle Massey Jul. 28, 2010, 7:56am

Several Jefferson County residents have filed a lawsuit to recover investments funds that were allegedly made based on false promises and material misrepresentations.

Tommy G. and Marilyn Vance, Dr. James Kirby and Mary Mitchell Kirby, Greg and Jennifer Hebert Thompson filed suit against Laguna Resources Ltd., Crown Team Texas, Crown Team Construction, Allco, James L. Hayes, Thomas W. Harrison, Denise Harrison, Bolivar Holdings, Laguna Harbor Property Owners Associations and Wachovia Bank, National Association on July 22 in Jefferson County District Court.

According to the lawsuit, the plaintiffs bought one unit of Preferred Investor Limited Partnership Interest in Laguna Resources, a luxury beach house addition to be developed on the Bolivar Peninsula. The plaintiffs allege they were told their investment would double in 12 months.

"Based on Defendants' false promises and material misrepresentations and warranties concerning their investment, Plaintiffs paid defendant, Laguna Resources, substantial sums," the lawsuit states.

The plaintiffs state that since they have entered the agreement, the defendants have failed and refused to comply with their duties and obligations such as properly handling the investment funds, providing information concerning investments and reporting to proper authorities regarding the investment enterprises.

Causes of action filed against the defendants include violations of the Texas Business & Commerce Code including violation of the Texas Deceptive Trade Practices-Consumer Protection Act, violations of Texas Securities Act, breach of contract, fraud, breach of fiduciary duty, constructive trust, breach of express and implied warranties, misrepresentations including, but not limited to failure to disclose material relationships, conversion and neglect.

The plaintiffs are requesting economic and actual damages in an amount in excess of $100,000, plus damages for mental pain and distress, exemplary damages, interest, attorney's fees and court costs.

The plaintiffs are represented by Beaumont attorney B. Adam Terrell of Weller, Green, Toups & Terrell.

Judge Milton Gunn Shuffield, 136th District Court, is assigned to the case.

Case No. D187-357

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