Defendants respond to allegations over failed beach development

John Suayan, Galveston Bureau Jun. 14, 2012, 7:18am

GALVESTON - Two defendants in a recent lawsuit alleging they provided inaccurate information about development projects in Crystal Beach have filed an original answer.

Crystal Beach residents Willis and Karon Turner filed a three-page formal response June 4 before the Galveston County 56th District Court. The suit asserts plaintiffs John Speich, Joe Forkner and W & S Harkness Family Limited Partnership violated an operating agreement dating back to Oct. 2, 2009, between them.

As previously reported, the plaintiffs sued the Turners and KWT Custom Homes LLC last month for what they claimed was a failed investment.

Court papers filed May 7 allege that the Turners convinced the plaintiffs to put money into KWT, however, the investors did not receive a cent.

Representations and a financial statement supposedly indicating KWT's success in the year 2009 prompted the plaintiffs to buy a stake in the venture, but they claim they eventually learned "that the defendants had not been forthcoming with the complete relevant details of the financial status and viability of KWT," according to the original petition.

The suit says KWT began losing money immediately and the Turners used at least $50,000 of the investment funds for their own personal use.

The Turners' rebuttal states the plaintiffs failed to abide by a clause calling for mediation in the face of disputes, adding "they have not submitted the matters in dispute to mediation."

Alongside the plea in abatement, the answer denies each and every one of the complainants' allegations.

The Turners are representing themselves in the case.

Case No. 12-cv-1183

More News