Commercial property owners in dispute over funds

By Kelly Holleran | May 13, 2013

The owners of commercial property in Beaumont are involved in litigation over allegations that one of the partners attempted to secretly siphon money from the partnership to another establishment.

MJL Family LP claims it owns a 49.5 percent interest in commercial real estate at 5550 Eastex Freeway in Beaumont while defendant Island Club holds another 49.5 percent interest in the property. Texecutive is considered the general partner, according to the complaint filed May 2 in Jefferson County District Court.

At some point, Texecutive paid Island Club money for construction work at the property that far exceeded the value of the work performed, the suit states.

“Defendants entered into a civil conspiracy, the object and intent of which was to siphon money from 5550 Eastex into Island Club,” the complaint says. “These funds would have been profits for 5550 Eastex.”

Texecutive engaged in numerous other actions not fitting of a reliable general partner, MJL claims. For instance, it failed to perform its duties in securing leases for the property, failed to renew and obtain new leases for the property and failed to keep the property in a safe condition, according to the complaint.

In its complaint, MJL is asking the court to allow it to access all of the records associated with the property because Texecutive failed to provide it with requested data, the suit states.

MJL says Texecutive and Island Club engaged in civil conspiracy and breached their fiduciary duties in their operation of the building.

In its complaint, MJL seeks actual damages in excess of the minimum jurisdictional limits of Jefferson County District Court, plus a constructive trust on all of Texecutive’s and Island Club’s funds, assets, money, accounts and real property. It also is seeking pre- and post-judgment interest at the legal rate, costs and other relief the court deems just.

Terry W. Wood of Beaumont will be representing it.

The case has been assigned to Judge Gary Sanderson, 60th District Court.

Case No. B194-306

More News

The Record Network