Finance company in litigation over apartment complex sale

Kelly Holleran Jul. 18, 2011, 7:11am

A financial corporation filed a lawsuit against the companies that it claims failed to properly pay for an apartment complex.

Peninsula Finance Corp. claims it financed property in the city of Beaumont, which was an apartment complex owned by Maple Glen Partners, according to the complaint filed June 28 in Jefferson County District Court.

PLM purchased the subject property for $400,000. PLM merged with Park Lane Manor of Akron, the suit states. After the merging, Park Lane entered into a mortgage note for $210,000, but subsequently failed to make the required payments from the spring of 2006 through June of 2007, the suit states.

In June 2007, Maple Glen decided to sell the property to Pear Orchard, which in turn, sold it to defendant Orchard Holdings, the complaint says.

Defendant Independence Title Co. handled the closing and issued a title insurance policy, Peninsula Finance Corp. claims.

However, when the $2,080,000 worth of purchase money was disbursed after the sale of the property, Peninsula Finance received none of it, according to the complaint. Instead, defendants Gary Pietruzka, Jorge Newberry and Pacific Funding Group received it all, the suit states.

In April 2010, Bank of Oklahoma, the bank that provided the money for the sale, demanded Peninsula Finance release its two deeds of trust, the suit states.

Peninsula Finance refused to oblige to Bank of Oklahoma's requests and says it should have been paid some money at closing.

Peninsula Finance alleges conspiracy to commit fraud against the defendants.

It is seeking actual damages of $610,000, plus unpaid interest, attorneys' fees, punitive damages of no more than $1.5 million, declaratory relief and other relief the court deems just.

It will be represented by R. Tate Young of Houston.

The case has been assigned to Judge Bob Wortham, 58th District Court.

Case No. A190-418

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