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SOUTHEAST TEXAS RECORD

Friday, November 22, 2024

Texas justices keep three out-of-state defendants from escaping Mattress Firm’s kickback suit

State Court
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HOUSTON – The First Court of Appeals recently affirmed a ruling denying three defendants’ special appearances in a kickback lawsuit brought by Mattress Firm.

In 2017, Mattress Firm sued multiple companies and individuals, including Madison Development Group, Quattro Development and Michael Liyeos.

The suit alleges the defendants engaged in a bribes and kickbacks scheme paid to Mattress Firm insiders by real estate brokers and property development companies in an effort to charge Mattress Firm artificially inflated rental rates on leases throughout the country.

Court records show the three aforementioned defendants are all nonresidents of Texas and filed special appearances, which were denied by the trial court.

On appeal, the defendants argued the trial court erred because they lack minimum contacts with Texas.

On Aug. 6, the First Court affirmed the lower court’s ruling.  

Appeals case No. 01-18-00548-CV

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