On February 28, 2023 a Answer was filed involving a dispute between Elm Creek Investments Llc, Rial, Monty, Tcj Ventures, Llc, and 1000 I-35 Gainesville, Llc, 1087 Main, Llc, 1101 Venture, Llc, 1110 Woodbury, Llc, 14801 Inwood, Llc, 225 Us283, Llc, 4641 Nall, Llc, 5800 Democracy, Llc, 7014 Sa, Llc, 7801 Metcalf, Llc, 813 Oregon, Llc, Anastasia Energy, Llc, Black Swan Holdings ??? Alpha, Llc, Black Swan Holdings Gp, Llc, Black Swan Holdings ??? Harry Hines, Lp, Black Swan Holdings ??? Lindbergh, Lp, Black Swan Holdings, Llc, Black Swan Holdings - Midway, Lp, Black Swan Interests, Lp, Boomer Hoosier Investments, Llc, Cahaba Holdings, Llc, Chalupa, Ed, Chicane Holdings, Llc, Coach???S Farm & Ranch Supply, Llc, Codezero Capital, Llc, Conexlink, Llc, Crazy Horse Minerals Llc,, Ec Powersports Gainesville, Llc, Ec Powersports Gainesville Real Estate, Llc, Ec Powersports Oklahoma, Llc, Ec Powersports Oklahoma Real Estate, Llc, Ecre Holdings, Llc, Ecre Hq, Llc, Ecre Kansas City, Llc, Ecre Livingston, Llc, Ecre Lufkin, Llc, Ecre Lynnhaven, Llc, Ecre Southland, Llc, Ecre Sunland Park, Llc, Ecre Woodlake, Llc, Eleven19 Unlimited, Llc, Elm Creek Auto Group Holdings, Llc, Elm Creek Auto Group Metcalf, Llc, Elm Creek Autoplex, Llc, Elm Creek Capital Partners Fund 1, Lp, Elm Creek Capital Partners Fund I Gp, Llc, Elm Creek Capital Partners, Llc, Elm Creek Capital Partners Manager, Llc, Elm Creek Investments, Llc, Elm Creek Real Estate, Llc, Elm Creek Wc, Llc, E Street Investments, Llc, Garland Kings, Llc, Hard Six Holdings V, Llc, Highgrove Holdings, Llc, Kyle Crossing Holdings, Llc, Kyle Crossing Holdings Manager, Llc, Marble Mountain, Llc, Montgomery Ii, James Michael, Red Dirt Mineral Holdings, Llc, Rial, Monty, Shops Of Murphy, Llc, Shops Of Watauga, Llc, Sig Reinsurance, Llc, Srb Albuquerque, Llc, Srb Brownsville, Llc, Srb College Station, Llc, Srb Daytona, Llc, Srb Denton, Llc, Srb Gateway, Llc, Srb Harlingen, Llc, Srb Holdings, Llc, Srb Littleton, Llc, Srb Mesquite, Llc, Srb Spartanburg, Llc, Starwood Motors, Llc, Starwood Powersports Holdings, Llc, Tcj Energy, Llc, Tsp Operations Too, Llc, Ventures Karma, Llc, Williams, Karl, Wimo, Llc, for CNTR CNSMR COM DEBT in the District Court of Dallas County.
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FILED 7/31/2023 8:57 AM FELICIA PITRE DISTRICT CLERK DALLAS CO., TEXAS Marissa Gomez DEPUTY CAUSE NO. DC-23-02616 ELM CREEK INVESTMENTS, LLC, § IN THE DISTRICT COURT § Plaintiff/Connter-Defendant, § § v. § § MONTY RIAL, et al., 3 Defendant/Counter-Plaintiffs, § DALLAS COUNTY, TEXAS (alternatively Third-Party § Plaintiffs), § § v. § § KARL WILLIAMS, et al., § § Counter-Defendants (alternatively § Third-Party Defendants). § 68th JUDICIAL DISTRICT KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES Kyle Crossing Holdings, Shops of Murphy, Shops of Watauga, ECRE Southland, and 14801 Inwood, LLC (the “Added Counter-Defendants”) file this Original Answer and Affirmative Defenses to Defendant Monty Rial and TCJ’s First Amended Counterclaims, and Alternatively, Third-Party Petition (the “Counterclaims”), and would show the Court as follows: I. GENERAL DENIAL 1. Pursuant to Rule 92 of the Texas Rules of Civil Procedure, the Added Counter- Defendants generally deny Monty Rial/TCJ Ventures, LLC’s (“Counter-Plaintiffs”) allegations, and demand strict proof thereof by a preponderance of the evidence. KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 1 II. AFFIRMATIVE DEFENSES Pursuant to Rules 93 and 94 of the Texas Rules of Civil Procedure, Counter-Plaintiffs’ Counterclaims barred by one or more of the following affirmative defenses: 2. One or more of Counter-Plaintiffs’ claims fail for failure to state a claim upon which relief can be granted. 3. One or more of Counter-Plaintiffs’ claims fail because of their judicial admissions in the Counterclaims that TCJ Ventures, LLC is not legally bound by the “ECI Operating Agreements,” and therefore they do not have legal capacity to sue, and/or they are not entitled to recover in the capacity for which they sue. 4. One or more of Counter-Plaintiffs’ claims fail because of their judicial admissions that TCJ Ventures, LLC is not legally bound by the ECI Operating Agreements, and therefore they have not suffered an injury for certain claims, and therefore lack standing. 5. One or more of Counter-Plaintiffs’ claims fail because of the judicially admitted failure of TCJ Ventures, LLC’s consideration under the putative ECI Operating Agreements. 6. One or more of Counter-Plaintiffs’ claims fail because of the failure of a meeting of the minds. 7. One or more of Counter-Plaintiffs’ claims fail because of unilateral or mutual mistake; 8. One or more of Counter-Plaintiffs’ claims fail because of ratification, and/or acceptance of the benefits; 9. One or more of Counter-Plaintiffs’ claims fail because of waiver; 10. Pleading in the alternative that the ECI Operating Agreements are enforceable, one or more of Counter-Plaintiffs’ claims fail because of the contractual protections of: liability KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 2 limitations, indemnity, limitations on fiduciary performance, exculpation, indemnity, failure to satisfy the condition precedent of TCJ’s entry into the ECI Operating Agreements, the existence of a valid and enforceable agreement bars claims in equity, and/or actual, apparent, and/or implied authority pertaining to acts involving TCJ. 11. One or more of Counter-Plaintiffs’ claims fail because of the doctrines of estoppel, quasi-estoppel, and/or promissory estoppel. 12. One or more of Counter-Plaintiffs’ claims fail because of the doctrine of laches. l3. One or more of Counter-Plaintiffs’ claims fail because of the doctrine of unclean hands. 14. One or more of Counter-Plaintiffs’ claims fail because of the business judgment rule. 15. One or more of Counter-Plaintiffs’ claims fail because ECI and/or TCJ did not have the ability to execute on the any alleged usurpation of opportunity. l6. One or more of Counter-Plaintiffs’ claims fail because of the doctrine of in parz' delicto. 17. One or more of Counter-Plaintiffs’ claims fail because of offset against damages due pursuant to claims brought by one or more of the Counter-Defendants. 18. One or more of Counter-Plaintiffs’ claims fail because of the expiration of the applicable statute of limitations. 19. One or more of Counter-Plaintiffs’ claims fail claim(s) fail because of their failure to mitigate their damages, or otherwise exercise reasonable and common sense (from 2018 to 2022) concerning their alleged investment. KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 3 20. One or more of Counter-Plaintiffs’ claims fail because of the economic loss doctrine. 21. One or more of Counter-Plaintiffs’ claims for exemplary damages are subject to any applicable statutory cap (including under TEX. CIV. PRAC. & REM. CODE § 41.001 et seq). II. REQUEST FOR RELIEF WHEREFORE, PREMISES CONSIDERED, the Added Counter-Defendants respectfully request that the Court: A. Enter take nothing judgment against Counter-Plaintiffs; B. Award the Added Counter-Defendants their attorneys’ fees, costs and post- judgment interest at the highest rates allowed by law; C. Grant the Added Counter-Defendants such other and further relief to which they may be entitled, in law and equity. KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 4 Dated: July 31, 2023 Respectfully submitted, /s/ Jeffrey L. Mills Bryan J. Wick Texas State Bar No.: 24003169 bryan.wick@wickphillips.com J. Sean Lemoine Texas State Bar No.: 24027443 sean.lemoine@wickphillips.com Jeffrey L. Mills Texas State Bar No.: 24074726 jeffimills@wickphillips.com Daniella G. Heringer Texas State Bar No.: 24103460 daniella.heringer@wickphillips.com WICK PHILLIPS GOULD & MARTIN, LLP 3131 McKinney Avenue, Suite 500 Dallas, Texas 75204 Telephone: (214) 692-6200 Facsimile: (214) 692-6255 ATTORNEYS FOR THE ADDED COUNTER- DEFENDANTS CERTIFICATE OF SERVICE I certify that a true and correct copy of the foregoing instrument was served on all counsel pursuant to the Texas Rules of Civil Procedure on July 31, 2023. /s/Jefi"rev L. Mills Jeffrey L. Mills KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 5 My name is Jeffrey L. Mills. My date of birth is September 24, 1977, and my business address is 3131 McKinney, Suite 500, Dallas, Texas 75204. I declare under penalty of peljury that the foregoing allegations concerning paragraph 3 in the Added Counter-Defendants Original Answer and Affirmative Defenses, are true and correct, and Within my personal knowledge based upon my role as outside legal counsel for the Added Counter-Defendants, and my review of the judicial admissions contained in the Counterclaims. Executed in Kane County, Illinois, on July 31, 2023. /WM Jeffrey L. Mills KYLE CROSSING HOLDINGS, SHOPS OF MURPHY, SHOPS OF WATAUGA, ECRE SOUTHLAND, AND 14801 INWOOD, LLC ORIGINAL ANSWER AND AFFIRMATIVE DEFENSES PAGE 6 Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules. Chinar Hassan on behalf of Jeffrey Mills Bar No. 24074726 chinar.hassan@wickphillips.com Envelope ID: 78020569 Filing Code Description: Original Answer - General Denial Filing Description: Status as of 7/31/2023 9:13 AM CST Associated Case Party: ELM CREEK INVESTMENTS LLC Name BarNumber Email TimestampSubmitted Status Jeffrey Mills jeff.mills@wickphillips.com 7/31/2023 8:57:53 AM SENT Lanette Fidone lanette.fidone@wickphillips.com 7/31/2023 8:57:53 AM SENT Associated Case Party: MONTY RIAL Name BarNumber Email TimestampSubmitted Status Nicole L.Wil|iams nwilliams@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Linda Carranza lcarranza@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Kamran Anwar kanwar@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Laurie DeBardeleben ldebardeleben@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Mackenzie S.Wal|ace mwallace@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Alfred D.Blue ablue@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Ashton K.Dietrich adietrich@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Dolly Whitaker dwhitaker@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Katherine Murchison kmurchison@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Hayden Baird hbaird@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Paula Gentry pgentry@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Janice O'Kane jokane@thompsoncoburn.com 7/31/2023 8:57:53 AM SENT Case Contacts Name BarNumber Email TimestampSubmitted Status Sean Lemoine sean.lemoine@wickphillips.com 7/31/2023 8:57:53 AM SENT Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules. Chinar Hassan on behalf of Jeffrey Mills Bar No. 24074726 chinar.hassan@wickphillips.com Envelope ID: 78020569 Filing Code Description: Original Answer - General Denial Filing Description: Status as of 7/31/2023 9:13 AM CST Case Contacts Daniella Johner daniella.johner@wickphillips.com 7/31/2023 8:57:53 AM SENT Bryan J.Wick bryan.wick@wickphillips.com 7/31/2023 8:57:53 AM SENT Hannah Hukill hannah.hukill@wickphi||ips.com 7/31/2023 8:57:53 AM SENT Derry Anderson derry.anderson@wickphillips.com 7/31/2023 8:57:53 AM SENT Barb Morgan barb.morgan@wickphillips.com 7/31/2023 8:57:53 AM SENT Associated Case Party: JamesMichaelMontgomery || Name BarNumber Email TimestampSubmitted Status Jeremy Camp 24069459 jc@gardnerhaas.com 7/31/2023 8:57:53 AM SENT Michael Scott Gardner 24002122 mg@gardnerhaas.com 7/31/2023 8:57:53 AM SENT Shannon Webb admin@gardnerhaas.com 7/31/2023 8:57:53 AM SENT Associated Case Party: Chicane Holdings, LLC Name BarNumber Email TimestampSubmitted Status Shannon Webb admin@gardnerhaas.com 7/31/2023 8:57:53 AM SENT Associated Case Party: Hard Six Holdings lll, LLC Name BarNumber Email TimestampSubmitted Status Elizabeth Rogatski elizabeth@jfbusinesslaw.com 7/31/2023 8:57:53 AM SENT Brandy Hoge brandy@jfbusinesslaw.com 7/31/2023 8:57:53 AM SENT Associated Case Party: Black Swan Holdings, LLC Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules. Chinar Hassan on behalf of Jeffrey Mills Bar No. 24074726 chinar.hassan@wickphillips.com Envelope ID: 78020569 Filing Code Description: Original Answer - General Denial Filing Description: Status as of 7/31/2023 9:13 AM CST Associated Case Party: Black Swan Holdings, LLC Name BarNumber Email Timestam pSubmitted Status Samuel Johnson sam@jfbusinesslaw.com 7/31/2023 8:57:53 AM ERROR