Man sues partner over handshake agreement

An Alvin resident is suing a Texas investment firm for alleged breach of duty in 2014.

Jeph Burnett filed a claim against Firefly Investments of Houston in Galveston County District Court on April 6, claiming liability in a March 2014 business matter.

The parties entered into a verbal agreement in October 2013 to form a general business partnership to engage in residential property renovation. Burnett provided services as a general contractor; the defendant furnished the capital, including real property located in Friendswood and payment to subcontractors.

According to the lawsuit, the two agreed not to take any salary for their work; instead, they would split profits equally. The complaint states that Firefly shut out Burnett on or about March 18, 2014, excluding him from participation and forcefully removing him from the alleged mutual property.

Burnett claims that the defendant falsified documents to its advantage and denied him access to records. The plaintiff requests that the court recognize the partnership, order the defendant to produce accounts and award judgment. He also asks the court to approve foreclosure of the real property in Galveston County or alternatively to foreclose liens against the property.

Citing breach of fiduciary duty, the plaintiff seeks: as much as $100,000 in compensation for actual, exemplary and declaratory damages; pre- and post-judgment interest; attorney’s fees; expenses; and costs. He is represented by Patrick Larkin of the Larkin Law Firm in Pearland.

Galveston County District Court case no. 15-CV-0349