A Texas appeals court recently affirmed a lower court’s ruling granting summary judgment in favor of the Young Men’s Christian Association of Beaumont.
The ruling stems from a suit brought by J.W. Garrett & Sons (G&G Enterprises) – a company hired by the YMCA to perform construction work.
On July 16, 2010, G&G filed suit against the YMCA and three board members, attorney Wyatt Snider, Jack Koch and John Thomasson, in Jefferson County District Court, alleging trust fund violations, fraud, negligence and theft.
According to court records, on Oct. 1, 2008, the Beaumont YMCA hired G&G to build its new West End facility. Snider had told G&G’s president, Colin Garrett, that $4.5 million was designated to complete the project.
G&G maintains the money ran out before the job was finished, leaving a balance owed to the company of $747,243.29
On May 17, 2013, the defendants moved for summary judgment and a final take-nothing judgment was entered.
In July 2014, G&G appealed, arguing the trial court erred in granting the motion, court records show.
On Oct. 1 justices on the Ninth Court of Appeals found that the summary judgment evidence conclusively establishes that the Beaumont YMCA paid G&G over three millions dollars for its work, including two payments that occurred after the BYMCA recognized that it did not have sufficient funds to complete the new building.
“When the BYMCA recognized that it would not have sufficient funds, the BYMCA halted G&G’s work,” writes Justice Hollis Horton in the court’s memorandum opinion.
“Nothing in the summary judgment evidence raises an issue of material fact to show that Snider, Koch, and Thomasson, as officers of the BYMCA, secured G&G’s services with the intent to allow the BYMCA to avoid paying for G&G’s work.
“Instead, the record shows that after the BYMCA secured the contract, they worked in their capacity as officers to arrange the BYMCA’s affairs so that the organization could pay G&G for its work.”
G&G is represented by Bill Richey, attorney for the Beaumont law firm Griffin & Matthews.
Judge Gary Sanderson, 60th District Court, presided over the initial litigation.
Trial court case No. B-187,307.
Appeals case No. January 31, 2010306-CV