Lawsuit stemmed from lengthy, complicated hotel acquisition

HOUSTON--(BUSINESS WIRE)--

Houston-based law firm Jordan, Lynch & Cancienne PLLC recently secured $700,000 in punitive damages for clients stemming from a lengthy and complicated acquisition process involving a Clarion Inn location in Channelview, Texas.

That amount is in addition to an award of more than $200,000 in damages stemming from the defendant's failure to comply with two separate purchase agreements.

The firm also won breach of contract and fraud claims on behalf of the plaintiffs, Harrods Eastbelt LTD, in the case and successfully defeated a breach of contract counterclaim from the defendants.

The case began in March 2021 during negotiations to purchase the hotel from the reported owner, Steve Hsu. Mr. Hsu controlled three separate business entities with an interest in the venue and persuaded the intended buyer to purchase an interest in one of those entities to complete the transaction.

According to the lawsuit, over the course of the following year, Mr. Hsu attempted to conceal needed repairs and upgrades to the hotel; hid debts, unpaid invoices, and other relevant financial information; and violated terms of the agreement by spending $1.2 million of the escrow funds, which effectively forced the buyer to go through with the transaction.

According to testimony, Mr. Hsu also repeatedly misrepresented the terms of separate purchase agreements in an attempt to remove the buyer as a partner and remain the majority interest holder in order to retain control of the hotel.

“The jury saw this for exactly what it was—an intentional scheme to mislead an honest buyer and force a deal through deception,” said firm partner Jeb Golinkin. “Punitive damages are reserved for exceptional misconduct, and the verdict reflects the jury’s clear rejection of that kind of behavior. We are thrilled we could deliver complete victory for our clients."

Harrods Eastbelt was represented by Mr. Golinkin and attorney Charlotte Nicholas. The case is Harrods Eastbelt Ltd., et al. v. Harrods Realty, Inc., et al., Cause No. 2022-22215; in the 11th Judicial District Court of Harris County, Texas.

Jordan, Lynch & Cancienne PLLC is a Houston-based civil trial law firm whose lawyers have a proven courtroom track record in high-stakes litigation nationwide. They represent clients as both plaintiffs and defendants in commercial disputes, construction matters, products liability, toxic torts, trade secrets, and catastrophic personal injury claims. Flexibility in fee structuring is a hallmark of the way the firm does business. More: https://jlcfirm.com.

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Source: Jordan, Lynch & Cancienne PLLC