An investor wanting to save a 100-year old Palacios hotel from demolition will wait at least 13 days to see whether a judge will allow his counteroffer to remain on the table.
The estate of longtime Luther Hotel owner Harold Jack Findley signed a contract with the Corpus Christi-based Ed Rachal Foundation, which agreed to buy the hotel under the condition it would be demolished. Then Nick Herman, of Yaalx Inc., approached the estate with what he said is a higher offer.
Probate Judge Polly Spencer heard an argument Wednesday that the Rachal Foundation committed an anti-trust violation by making a concerted effort to ensure the estate does not deal with Yaalx.
Hermanòòò½ÊÓÆµ™s attorney said the independent administrator of the estate, Anne Findley Jones, has the fiduciary duty to accept the highest offer for the hotel.
òòò½ÊÓÆµœWe donòòò½ÊÓÆµ™t allege the contract between the Rachal Foundation and the estate violates anti-trust laws,òòò½ÊÓÆµ attorney Calhoun Bobbitt said during the hearing. òòò½ÊÓÆµœWeòòò½ÊÓÆµ™re saying the agreement to refuse a third party is a restraint of trade.òòò½ÊÓÆµ
The estateòòò½ÊÓÆµ™s legal team filed a motion to dismiss Yaalxòòò½ÊÓÆµ™s case on April 7.
Lawyers representing the estate said during a hearing Wednesday that Yaalxòòò½ÊÓÆµ™s offer should not have to be considered because it was made after the estate had already agreed to the Rachal Foundationòòò½ÊÓÆµ™s terms.
òòò½ÊÓÆµœYaalxòòò½ÊÓÆµ™s argument only makes sense if they sent it before the estate agreed to the contract with the Rachal Foundation,òòò½ÊÓÆµ attorney Paul Mullen said in court.
Bobbitt said Findley Jones, who was deposed in her hometown of Scottsboro, Alabama, last week, told lawyers in court that she did not know the Rachal Foundation wanted to demolish the hotel until after the contract had been signed.
According to Bobbitt, Jones also said she would be willing to give up her position as independent administrator as long as she would be informed of the latest developments with the hotel.
A court ruling on a motion to dismiss a case has a 45-day deadline once the motion is filed, but since a hearing on the motion was moved back two weeks, Judge Spencer extended the deadline for a ruling to 60 days. The new deadline is June 6.
Commented