FORT WORTH -- Thos. S. Byrne, the Fort Worth general contractor, filed another lawsuit Tuesday to try to collect nearly $6.6 million it says it's owed for converting the former Montgomery Ward building on West Seventh Street into condos.
The suit, filed in state district court in Tarrant County, asks that a judge allow the company to move forward with foreclosure proceedings on 93 condos at Montgomery Plaza, which have been sold, but not until its dispute with the developer is settled in arbitration.Byrne said the lawsuit was needed to preserve the company's lien rights because it faced a legal deadline.In the suit, the company said it hopes that OMP Development of Plano pays the $6.6 million or that the suit can be dropped after arbitration hearings expected in November or December."We're hopeful that OMP will finally do what is right and remit payment for money owed to Byrne," said Matthew Avila, Byrne's director of risk management.Should the case be brought to judgment, Avila said that the 93 condo owners should not face any personal loss and that their title insurance would cover what Byrne is owed."Not only has OMP disregarded their financial commitment to Byrne, they have created an unfair liability for homeowners," he said.OMP's attorney, Kenneth Chaiken, could not be reached for comment.For more than two years, Byrne has been embroiled in legal disputes with OMP over unpaid bills on the near-west-side project, which helped spur development in the West Seventh Street corridor.OMP hired Byrne in 2007 to build 240 condos on the upper seven floors of the vacant Montgomery Ward store.Byrne completed the project in March 2010.By that May, OMP had closed the sale of 94 condos.Byrne said it has been paid $43.2 million but is still owed nearly $6.6 million for labor, materials and services, court filings show.John Avila, Byrne's president and CEO, and his wife, Jane, have sued OMP over the sales contract of their condo in the development.Matthew Avila, the couple's son, said that "for legal reasons" his parents' condo was left out of the suit filed Tuesday."We are not happy about having to do this," Matthew Avila said of the suit, which names some high-profile Fort Worth residents.In June 2010, Byrne filed for arbitration to secure payment. A month later, it filed mechanic's lien rights on the 240 units.OMP filed a counterclaim alleging that Byrne illegally filed the liens and that the two sides had agreed to keep the project "lien free."In January, OMP filed a lawsuit in Dallas County against Byrne and the American Arbitration Association.OMP financed the project in 2007 with a $75 million note from Citibank. In December 2010, the bank sold the note to Wealth Diversified Fund in Dallas, which then transferred the note to Lowry Donkey Farm, a Granbury limited partnership, deed records show.The note was posted for foreclosure and 144 unsold units were sold in a foreclosure auction in February 2011.The foreclosure nullified the mechanic's liens on those units.By June 2011, the original development group, under the name 2600 Montgomery Llc., bought back the unfinished condos, financing the deal with a $21 million note from PlainsCapital Bank.The owners can sell those units free of liens.Montgomery Ward closed the Fort Worth store in 2001.The first-floor retail portion of the building and the adjoining shopping center anchored by SuperTarget were completed by another developer and are not involved in the any of the lawsuits.Sandra Baker, 817-390-7727Twitter: @SandraBakerFWSTHave more to add? News tip? Tell us
