LPHS Secures Defense Win in Real Estate Dispute

A Dallas County jury returned a defense verdict for a Houston real estate developer accused by certain limited partners in a real estate investment of costing them millions of dollars. The plaintiffs alleged that the developer failed to act in their best interests when determining the timing and price of the sale of a property located across from the site where the Dallas Mavericks have announced plans to build a new arena. LPHS partner Michael K. Hurst served as lead trial counsel for the defendants Ronny Hecht and Hecht G.P., with the support of  LPHS’s Daniela Holmes, Erin Elms-Nemec, and David Coale, as well as co-counsel Julie Pettit of the Pettit Law Firm.

The limited partners, who filed suit in April 2024, alleged that when Hecht sold the North Dallas property previously occupied by an LA Fitness that had been valued at as much as $14.5 million for just $8.5 million, he either did so “knowingly and intentionally” to gain leverage in his legal battles with his own business partner or because he was “grossly negligent.” The partnership claimed that the sale constituted a breach of Hecht’s fiduciary duties as the general partner.

Hurst told jurors the harm alleged in this case has nothing to do with Hecht’s management but instead centered on the vindictive actions of his estranged business partner, Avishai Ron, and Mr. Ron’s collaboration with some of the plaintiffs in the case.

“Let me be very clear about something. Ronny had lost more money on this deal than anyone else in the entire deal,” Hurst said in closing arguments. “They sued him basically for intentionally losing the money of himself and his family members and everybody else.” 

Read more about the case in The Texas Lawbook.