Plaintiff says contracts 'convoluted'

John Suayan, Galveston Bureau Sep. 12, 2011, 4:30pm

Michael Adams

GALVESTON - American International Industries Inc. alleges Texas Community Bank N.A., Dawn Condominiums and William Padon defrauded it out of $1 million, recent court documents say.

In a lawsuit filed Sept. 7 in Galveston County District Court, American International alleges the defendants initiated or assisted in schemes which swindled millions from its coffers.

According to the original petition, "TXCB's egregious conduct occurred over the course of three significant, distinct, but also intertwined, transactions."

"The three contracts at issue in this lawsuit are by their nature complex," the suit says. "TXCB made certain that such contracts were needlessly complicated and convoluted."

In its lawsuit, American International also cites instances when TXCB allegedly failed to abide with its parts of certain agreements.

TXCB allegedly refused to provide an agreed-upon loan, neglected to release its security interest in the plaintiff's real property and debited plaintiff's accounts in an amount equaling approximately to $350,000 without permission, the original complaint states.

The complainant additionally asserts the defendants lied about the financial state of the Dawn Condominiums in Galveston in an effort to get it "to act as a guarantor for Dawn's indebtedness to TXCB."

"Through such conspiracy and misrepresentations, TXCB, William Padon and Dawn Condominiums, L.P. were able to successfully hoodwink American into pledging $1,750,000.00, which the bank then used as leverage to force American to satisfy the indebtedness of the Dawn," the suit states.

A jury trial is requested.

Greer, Herz & Adams LLP is representing American International and Galveston County 10th District Court Judge David Garner is presiding over the case.

Case No. 11-cv-1427

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