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Monday, May 6, 2024

Dance studio operator sues former business associate for fraud, breach of contract

Lawsuits
Webp john d kinard galveston county district court

John D. Kinard | galvestoncountytx.gov

A longtime Galveston dance studio operator is suing a close associate, alleging breach of contract and fraud, as well as exploitation of an elderly individual.

Carolyn Callas, individually and doing business as Carolyn Ehmans’ Dance Academy, filed a complaint Aug. 17 against Jennifer Daugherty in the 122nd District Court of Galveston County, Texas.

The complaint states that on Nov. 6, 2015, the parties executed a written contract for Daugherty to lease from Callas a commercial building containing a dance studio and related structures. The filing says that Daugherty was to pay a minimum monthly rent of $3,500 plus taxes, insurance premiums and maintenance expenses – but failed to make payments as agreed. Callas retained an attorney, who sent a letter to induce Daugherty to take action before a suit was filed.

The filing says that on Sept. 24, 2021, they reached a new agreement, via text, that Daugherty would pay Callas the originally agreed $3,500 per month and also 20 months of back rent at $2,000 per month  – but that Daugherty did not do that, either – and alleges she never intended to, amounting to fraud.

“The defendant made that promise to pay Mrs. Callas with the intention that it would induce Mrs. Callas into allowing the defendant effectively free continued occupancy of the Callas Subdivision,” it says.

The complaint says the defendant’s breach resulted in financial harm and lost benefits for the plaintiff, and that she incurred damages of loss of income and loss of use of the property. The lost income forced Callas to sell the property, the filing states.

Furthermore, the complaint alleges, because Callas is a senior citizen, Daugherty’s conduct “constitutes financial exploitation of an elderly individual.”The plaintiff is asking the court for damages between $250,000 and $1 million, including exemplary damages, attorney’s fees, interest, costs of suit, and any other just relief.

The plaintiff is being represented by Brian D. Sutton of Sutton & Jacobs in Beaumont, TX.

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