HOUSTON — A heating and air company's co-founder alleges his business partner neglected his duties and caused a loss of revenue.
Edward Newby, individually and derivatively on behalf of Chatterson-Newby Companies Inc., filed a complaint Jan. 23 in Harris County against Christopher Chatterson alleging breach of fiduciary duty.
According to the plaintiff's complaint, Edward Newby was a shareholder and manager of Chatterson-Newby, a heating and air conditioning company which was incorporated in 2011, with the defendant serving as director and secretary. Newby claims that in 2022, Chatterson began to "neglect his responsibilities" including having 168 days of unexcused absences, missing meetings with potential customers and getting into conflicts with employees.
He also claims that Chatterson was not available to answer questions from the company's technicians and installers which caused the company loss of revenue. Newby alleges that during a 2022 trade show, Chatterson was seen intoxicated by the pool instead of attending meetings.
Newby seeks monetary relief between $250,000 and $1 million, interest and all other just relief. He is represented by Simon Hendershot, III and Raymond Panneton of Hendershot Cowart PC in Houston.
Harris County District Court case number 2023-04201