Answer: SHAWN IBRAHIM INC vs. HOUSTON-GALVESTON AREA LOCAL DEVELOPMENT CORPORATI

• 
• 
• 

						
                                
Preview
                                SHAWN IBRAHIM, INC., MAHMOOD                                     §      IN THE DISTRICT COURT OF
           AKHTAR, and MUHAMMAD AMIN                                        §



           vs.                                                              §      HARRIS COUNTY, TEXAS

           HOUSTON-GALVESTON AREA                                           §
           LOCAL DEVELOPMENT CORPORATION                                    §

                                               .              §       113




                    Defendant,     Houston-Galveston          Area   Local   Development        Corporation      (“CDC”)      files its first

           amended answer to Plaintiffs’ petition and would respectfully show the Court the following:

                    1.       CDC generally denies Plaintiffs’ allegations under Rule 92 of the Texas Rules of Civil

           Procedure and demands that Plaintiffs prove their allegations by a preponderance of the evidence and,



                    2.       Defendant is a certified development corporation whose status and authority are derived

           from Section 504 of the Small Business Investment Act of 1958 (the “504 program”) and which serves

           solely   to  carry   out  a  governmental       function.

           (statutory    purpose    of  the  504   Program     is  “to  foster  economic      development,       create  or  preserve    job

           opportunities, and stimulate growth, expansion, and modernization of small businesses.”). Pursuant to



           governments), namely the Houston-Galveston Area Council of Governments (H-GAC).

                                                                           nning commission as a “politi

           state”). H-GAC’s function is to promote the economy of the of the Houston-Galveston region.
           391.001. For this purpose H-GAC has created the CDC and (a) appoints and can remove the CDC’s

           board of directors, (b) has appointed H-GAC’s own executive director, Mr. Jack Steele, to serve as the

           executive director of the CDC, and (c) furnishes the staff of the CDC, who are compensated by H-GAC.

           CDC is thus a “governmental unit” within the meaning of the Texas Tort Claims Act, Tex. Civ. Prac.

           & Rem. Code Section 101.001(3)(D).

                    3.       Governmental immunity from suit bars Plaintiffs’ claims against CDC.

                    4.       Plaintiffs are barred by the doctrine of collateral estoppel from asserting that CDC did not



                    5.       Plaintiffs lack standing to assert their claims against CDC.

                    6.       Plaintiffs’ suit against CDC is barred by the applicable statute of limitations.

                    7.       Plaintiffs have sued the wrong defendant, given that CDC has assigned its rights in the

           standby creditor agreement to SBA.

                    8.       The   Plaintiffs   have    waived    their  claims    by  failing   to  notify  CDC     or  the  SBA     of  the

           Sunnyland suit until after a final judgment against the Plaintiffs and in favor of Sunnyland had been




                    For the foregoing reasons, Defendant Houston-Galveston Area Local Development Corporation

           respectfully requests that the Court, upon dispositive motion or trial on the merits, enter a final take

           nothing judgment in its favor and order Plaintiffs to pay its costs of court. Defendant also requests any

           other and further relief as the law and equity may allow.
                                                                 Respectfully submitted,



                                                                 By:      /s/
                                                                          Ramón G. Viada




                    I certify that all counsel of record have been served a true and correct copy of the foregoing
           document in accordance with Tex. R. Civ. Proc. 21a by electronic submission for filing and service
           through the Texas Online EFiling for Courts and/or an approved Electronic Filing Service Provider




                                                                          Ramon G. Viada III