This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Reserve At Summit Rock Files Lawsuit Against Horseshoe Bay Resort

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs