HORSESHOE BAY, Texas, Jan. 24, 2013 /PRNewswire/ -- Reserve at Summit Rock, LP, owner of the Golden Bear Reserve—a 21-acre, golf-front development overlooking Summit Rock Golf Course—has filed a petition against Summit Rock Communities LLC and the Horseshoe Bay Resort, owner of the neighboring Summit Rock Golf Course and the Summit Rock community.
The related defendants in the suit are Summit Rock Communities, LLC; Summit Rock Holdings, LLC; Horseshoe Bay Resort Enterprises, LLC, and Horseshoe Bay Resort Ltd. Claims filed by Reserve at Summit Rock include various allegations of wrongful conduct on the part of Horseshoe Bay Resort Chairman Douglas Jaffe, Jr. and Chief Executive Officer Douglas Jaffe III, which led to specific damages to the Reserve's development. The suit alleges multiple instances of interference, specified nonperformance and the reformatting of the Public Improvement District solely for the long-term benefit of the defendants—all of which harmed the Reserve. The amount of damages specified in the filing is not less than $5,850,000.
The petition further alleges and outlines the competitive advantage that Jaffe, Jr. and his affiliates have over other developers in the area based on their unique partnership with the Summit Rock community and Summit Rock Golf Course lender, International Bank of Commerce (IBOC).
"We find the venture relationship between the Resort and its own lender very disconcerting," Jay Fertig, president of Reserve at Summit Rock, LP, said. "In fact, disclosures publicly available through the Secretary of State, as of year-end 2012, reflect that the authorized managers of Summit Rock are all either former or existing International Bank of Commerce senior officers, including its chairman, Dennis Nixon.From these disclosures in the public records, it is easy to discern the relationship between the Resort and its lender partner, International Bank of Commerce (NASDAQ symbol IBOC). Non-institutional loans in excess of $140 million to one or more related entities, some of which are managed by the bank's own officers, should cause a great deal of shareholder and regulatory scrutiny." The community of Summit Rock remains largely undeveloped with the exception of the golf course, which has no permanent facilities—such as a clubhouse and cart barn—other than comfort stations. Certain Horseshoe Bay Resort members have access to Summit Rock Golf Course, a Jack Nicklaus Signature Course, which opened in the past year.