Women in legal dispute over Galveston school

By John Suayan, Galveston Bureau | Aug 16, 2011

GALVESTON - Leticia Craw of Friendswood and Pasadena residents Arlene and Nini Ramirez are suing Galveston local Linda Dailey, alleging trust issues resulted in the closure of a school the four women formed last year.

A lawsuit filed Aug. 1 in Galveston County District Court claims the plaintiffs experienced difficulty working with Linda Dailey on the operation of Health Initiatives Learning Center LLC.

Recent court documents say Dailey even abandoned the venture to start her own.

The parties formed the subject institution, which was located in Galveston, in January 2010 and classes started a few months later.

The plaintiffs pitched in money to the business as well as their efforts, however the defendant never put any money into the operation of said business, the suit says.

According to the original petition, Dailey was entrusted with the school's finances, however, she refused to take on the responsibility.

Some of the funds were never deposited into the business's bank account, the suit says.

It further explains that the respondent spent "less and less time" working for the school and eventually started her own business even though she continued to receive a salary based on an eight-hour workday.

The plaintiffs assert their relationship with the defendant increasingly deteriorated to the point she completely left the venture in May 2010.

They tried to inform her of their intentions to close the school because of the likelihood it would never be a financial success, but she "bitterly resisted," the suit says.

Dailey reportedly took over the institution's operations by herself.

"The actions of the defendant constitute a breach of fiduciary duty owed to the other members," the suit says.

"The defendant's action in using assets of the company for her individual use also constitute conversion."

A jury trial is requested.

The complainants are represented by The Law Offices of Kerry L. Neves.

Galveston County 405th District Court Judge Wayne Mallia is presiding over the case.

Case No. 11-cv-1251

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