BEAUMONT – A complex case centered on the sale of a hotel is now up on appeal, where justices will decide if Judge Kent Walston, 58th District Court, erred in doling out $100,000 in earnest money to a company that backed out of a sales contract.
The case is a breach of contract dispute between Hotel Apart and American Capital Funding Corp. (AmCap) over the sale of a Port Arthur hotel.
AmCap, the owner of the hotel, contends Hotel Apart, the buyer of the hotel, terminated a contract prior to closing, citing failure of conditions precedent.
The case is currently before the Ninth Court of Appeals and has been set for submission for briefs for Aug. 17, court records show.
In its appellate brief, AmCap argues Walston erred in granting Hotel Apart’s petition in intervention and awarding the company $100,000 in earnest money because AmCap fully performed its obligations under an “unambiguous” written sales contract.
The contract affords the non-breaching-party the sole remedy of receiving the $100,000 earnest money paid under the contract.
AmCap argues it satisfied all conditions precedent prior to Hotel Apart’s termination and breach of the sales contract – meaning AmCap should receive the $100,000.
On Oct. 14, Walston signed an order regarding disbursement of registry funds, construing that AmCap failed to satisfy all conditions precedent and ordering that the $100,000 earnest money be disbursed to Hotel Apart, court records show.
AmCap appealed, requesting the Ninth Court reverse the ruling and award it the $100,000.
In its brief, Hotels Apart argues AmCap failed to satisfy the requirements of the sales contract with respect to title and title insurance and that it properly exercised its contractual right to terminate the contract.
Moore Landrey attorney Alan Sanders represents Hotel Apart.
AmCap is represented by Bruce Partain and Zach Celeste, attorneys for the Beaumont law firm of Wells, Peyton, Greenberg & Hunt.
Appeals case No. 09-20-00235-CV