June 29, 2006, San Antonio, TX: Following ten days of trial proceedings, a Bexar County jury found for Plaintiff, PSRA, Inc. on claims of statutory fraud, fraud, negligent misrepresentation and fraudulent transfer.PRSA was represented by Walter Williams, an Austin-based attorney. The verdict obtained was in excess of $1,000,000 against Indiana-based San Antonio Properties, L.P. and its limited partners.
The lawsuit originated from San Antonio Properties, L.P.’s sale of the Quail Creek Apartments to Texas corporation, PSRA, Inc., in July of 2001. However, by November of 2003, the apartments had been losing money for over 2 years and PSRA’s representative, Rick Anderson, could not figure out why. After San Antonio Properties agreed to take the apartments back, they sued PSRA for $3,000,000. During the process of exchanging documents and taking depositions, it became clear that San Antonio Properties made multiple material misrepresentations about the condition of the apartments and their financial performance. Only at that point, did PSRA file its lawsuit. San Antonio Properties dismissed its $3,000,000 lawsuit before the June trial began.
The jury found that San Antonio Properties made fraudulent misrepresentations regarding the financial performance and physical condition of the apartments. The jury found that San Antonio Properties had falsely represented and warranted matters relating to the plumbing system, a multi-million dollar rehabilitation and the financial operations. During the trial, David Hruska, one of San Antonio Properties’ limited partners, testified that he altered the financial documentation San Antonio Properties had provided PSRA by covering up the capital expenses.
The jury also found that San Antonio Properties had fraudulently transferred over a million dollars to the limited partners, David Hruska, Tom McCalley and Daniel Brunette, in an effort to avoid paying the Plaintiff.
Judge Richard Price presided during the trial.
For further information, please contact Walter Williams at (512) 472.6097. |
