The City of Friendswood recently pursued legal action against Olson & Olson, LLP, claiming that the Houston law firm failed to properly advise it on a land transaction.
Court papers filed June 3 in the Galveston County 10th District Court explain that the city bought parcels of land to use as a city park only to learn that the purchase was illegal.
Olson & Olson apparently neglected to mention to the plaintiff that the subject transaction violated state statute.
“The City of Friendswood entered into and ultimately executed a contract to purchase the parcels of land, relying upon the advice of their counsel, and believing that such was legally authorized,” the lawsuit says.
“The City of Friendswood entered into a legally binding contract with Wight Realty Interests, Ltd. to purchase the property in question.”
Per the complaint, the city soon realized its error and subsequently terminated the agreement. Wight, which is not a party in the case, sued the complainant in response to the cancelation.
“As a result of the litigation, the City of Friendswood was forced to retain counsel to defend them, and ultimately had to settle the case for $500,000.00,” the suit says.
“The City of Friendswood also incurred approximately $235,000.00 in legal fees, making its total damages approximately $735,000.00 to date.”
A jury trial is requested.
Attorney Ross A. Sears, II of the law firm Williamson, Sears & Rusnak, LLP in Houston is representing the plaintiff.
Galveston County 10th District Court Case No. 16-CV-663