GALVESTON - Local resident Paul T. Young is suing his business partner after the latter allegedly shut him "entirely out" of their venture.
A lawsuit filed Jan. 6 in Galveston County District Court claims Pearland resident Louis F. Goza acquired a note and loan Young explains their partnership tried to find a host bank for without the plaintiff's knowledge.
Goza reportedly failed to compensate Young for the transaction in question.
The men owned stake in Midtown Park Development Ltd., which was formed by Young a decade ago for the purpose of developing property in Alvin.
Young was a 74 per cent limited partner, Goza a 25 per cent limited partner and Horizon 2003 LLC, fully owned by the complainant, a 1 per cent owner and managing member.
Young and Goza's capital contributions made it possible for the venture to acquire a 67-acre tract of land in Brazoria County for the purpose of developing residential lots.
They obtained a development loan in the amount of $1.7 million from First Community Bank in Houston in 2005 to fund the development of a subdivision to be known as Midtown Park.
Sometime a year later, Wells Fargo purchased First Community Bank and continued to renew the loan for two more years afterwards, prompting Young and Goza to find another bank to no avail.
According to the suit, Goza, unbeknownst to the claimant, bought the note and security of the loan from Wells Fargo in September 2008.
Goza was reported to have successfully foreclosed on a portion of the Midtown tract as well as prevented the entity from any input in the further development of said tract.
Midtown and Horizon join Young as co-plaintiffs in the litigation.
Consequently, the complainants seek unspecified monetary damages.
They are represented by attorney Bradford Wald Irelan of Irelan Hargis PLLC in Houston.
The case has been assigned to the Galveston County 212th District Court.
Case No. 14-CV-0010