Industrial supplier sues former business partner

Kelly Holleran Apr. 23, 2012, 7:55am

A Dallas company claims a former partner continues to pester it for money that it does not owe.

Kilgore Industrial Supply filed a lawsuit March 29 in Jefferson County District Court against Conway Security Services, Jason R. Holloway and Shannon C. Conklin.

In its complaint, Kilgore Industrial alleges the defendants approached it about entering into a partnership. Both Kilgore and Conway would provide unspecified services, according to the complaint.

In order to provide the services, Conway would place a certain amount of money, known as working capital, up front, the suit states. After finishing the job, Kilgore agreed to repay the working capital, plus 50 percent of the gross profits earned for the work, the complaint says.

Although Conway did provide the working capital for numerous projects from September through December 2011, it failed to pay the full working capital for five business transactions, Kilgore claims.

As a result, Kilgore claims it was forced to fund the jobs "in house." Kilgore has paid the defendants the money they owe, but refuses to reimburse them for the working capital that Kilgore was forced to pay out of its own pocket, according to the complaint.

"Despite the fact that Defendants are not owed any money from Kilgore, Defendants persistently, wrongfully and tortiously harass Kilgore demanding payment of monies that are clearly not owed to Defendants," the suit states.

Kilgore alleges the defendants violated the Texas Fair Debt Collections Practices Act and engaged in common law fraud and negligent misrepresentation.

In its complaint, Kilgore seeks actual, additional and exemplary damages, plus pre- and post-judgment interest, costs, attorney's fees and other relief the court deems just.

Stuart C. Yoes of The Yoes Law Firm in Beaumont will be representing it.

Judge Donald Floyd, 172nd District Court, will be representing it.

Case No. E192-245

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