Lease dispute results in lawsuit

A Galveston County company is suing over claims it exercised its option to purchase property in a lease agreement but the landlord denied it.

Semi & Shamim Enterprises filed a lawsuit Oct. 29 in Galveston County District Court against Raj K. Syal.

According to the complaint, on July 27, 2011, Semi & Shamim Enterprises entered into a written lease agreement with the defendant to lease property and improvements on Interstate 45 in LaMarque, including a building to be operated as a convenience store. The complaint states the property needed substantial repairs, and the agreement provided the plaintiff the option during the first three years of the lease to purchase the property and improvements for $1.2 million.

The plaintiff says it was either to pay $50,000 as consideration for the option or make improvements to the premises and receive credit therefore. According to the lawsuit, with Syal's consent, Semi & Shamim Enterprises made $45,134 worth of improvements and paid Syal $10,000 toward the option consideration. The plaintiff says it notified the defendant via written notification of its exercise of the option and had its attorney prepare the earnest money contract at the defendant's request. According to the lawsuit, Syal later denied the plaintiff had validly exercised the option and failed to convey the property to the plaintiff.

Semi & Shamim seeks judgment ordering the defendant to execute a deed transferring the property to the plaintiff, costs of court and $20,000 in attorney fees, plus $10,000 in the event of appeal. It is represented by attorney Ted A. Cox of Houston.

Galveston County District Court case number: 14-CV-1153