Construction companies create complex contracting dispute

A Nevada-based firm sued a Harris County company and its owner over a contractual dispute.

Capital Plus Equity LLC (CPE) filed against Schear Hampton Drywall LLC and James B. Smith of Katy, Texas, in Galveston County District Court May 18, claiming breach of contract in a January matter.

The plaintiff is a contractor with Green Cold-Rolled Steel LLC (GCRS), a construction supplier to the defendant for a Galveston, Texas-based project. The defendant is subcontractor to an original contractor, T&G Constructors.

The suit alleges that when the plaintiff purchased goods from GCRS, the parties agreed on Jan. 21 to a multi-party invoice and reimbursement chain system that was guaranteed to be paid in full by Smith. According to the complaint, Schear Hampton Drywall dishonored the terms of the contract by paying GCRS directly under an alleged side agreement between Smith and GCRS.

Schear Hampton is now claiming unverified back charges, the suit states, while admitting that it owes GCRS between $170,000 and $204,750. Citing breach of contract and violations of state law, the plaintiff requests the unpaid balance due of $276,742.56; pre- and post-judgment interest; attorney’s fees; expenses; and costs.

Capital Plus Equity is represented by attorney Michael Howell of Howell Law Firm in Houston, Texas.

Galveston County District Court case number 15-CV-0493