Last March, Beverly and Daniel Paris, the parents of Kristin Paris, filed suit against the Beaumont company Rocklon LLC (Dream Street), Rocklon Kennedy and Thomas Sherlock in Jefferson County District Court.
Kennedy is a prominent Beaumont businessman who owned Dream Street, a gentleman's club on Martin Luther King Boulevard. He was driving the vehicle that struck and killed Kristin, who was 18 years old at the time of her death.
Kennedy pled guilty to intoxicated manslaughter and was sentenced by a jury to eighteen years in prison.
Rocklon operates the bar in which the incident allegedly leading to Kristin’s death occurred. According to court documents, Kennedy was over-served alcohol, became intoxicated, and allegedly struck and killed Kristin while subsequently driving his vehicle on Jan. 26, 2015.
Court records show the plaintiffs amended their petition twice, naming Ruston Ray Kennedy (Ruston) as a defendant and alleged violations of the Texas Uniform Fraudulent Transfer Act against all defendants, including Rocklon.
The plaintiffs maintain Rocklon and Rockal are alter egos of Kennedy and that
Ruston participated in liquidating the assets of Rocklon after the commencement of the lawsuit, using the proceeds for his personal benefit.
At a temporary injunction hearing, the plaintiffs presented evidence that Rocklon was the alter ego of Kennedy and that after the motor vehicle accident Kennedy transferred control and interest of Rocklon’s bank account to Ruston who then began the process of selling Rocklon’s sole asset, the MLK Property.
Two months after Kristin’s death, Ruston successfully liquidated Rocklon’s only asset and had begun expending proceeds from the sale and transferring them to other locations, court records show.
The trial court enjoined Rocklon from further disposition of the proceeds, prompting the appeal.
The proceeds from the sale of the MLK Property are the type of assets the legislature contemplated could be subject to injunction under TUFTA, the Ninth Court found on Oct. 20.
Under TUFTA, the trial court may find substantial likelihood of success on the merits when it is “presented with evidence of intent to defraud the creditor,” the opinion states.
“Therefore, we conclude the temporary injunction was not an improper pre-suit attachment of property,” the opinion states. “We overrule Rocklon’s first issue and affirm the order of the trial court granting temporary injunction.”
Case background
The complaint cites that Sherlock, the bartender as well as the manager and part owner at the establishment, continued to serve Kennedy, even though, the suit maintains, he was aware that Kennedy was intoxicated.
Kristin was driving on Interstate 10 when Kennedy entered the roadway against traffic, colliding with her vehicle. The victim was conscious and bleeding; however, she passed away in a hospital two days later.
Citing breach of duty and negligence, Beverly and Daniel Paris allege violation of state liquor law, claiming that the bar willfully over-serves its patrons. Apart from wrongful death, they also claim survival action, referring to their own mental anguish, medical expenses, and funeral and burial costs.
The plaintiffs seek actual, consequential, exemplary and punitive damages, plus attorney’s fees, expenses and costs.
They are represented by Kurt Arnold, J. Kyle Findley and Kala Flittner of Arnold and Itkin in Houston.
Beaumont attorney David Bernsen represents Rocklon.
Judge Gary Sanderson, 60th District Court, is presiding over the case.
Case No. B-196826