Court Halts Hostile Takeover of Condominium Association in Houston’s Chinatown July 5, 2022
HOUSTON – A Harris County court has granted a temporary injunction to a local commercial condominium association, curtailing an effort by a rogue group of property owners to take control of the association and its operations.
District Judge Kristen Hawkins granted the temporary injunction, which is part of a lawsuit filed in late June by the Dun Huang Plaza Association claiming that a group of individual owners had launched an unauthorized effort to dismiss the association’s elected board of directors and install themselves as new directors, among other violations of the development’s bylaws.
According to the lawsuit, the “attempted coup” stemmed from the association’s approval of a dues increase in the association’s annual budget to cover extensive damage to the property resulting from a December 2021 storm and outstanding payments from certain owners in the Association. The lawsuit seeks a declaration that the “special meeting” called to install the new board was improper, that any funds collected by that group be returned to the association, and that all actions of the group be voided.
“With this injunction in place, the duly elected board can begin making things right for its members and reduce the chaos and confusion caused by this unlawful takeover attempt,” says Michael Killingsworth of AZA, the Association’s attorney, who tried the three-day injunction hearing with lead attorney Kyle Poelker. “This order will remain in effect until a further order or judgment from the court is issued or pending the outcome of any trial.”
Dun Huang Plaza is one of the largest commercial condominium complexes in Houston’s Chinatown, and part of an extensive development of offices, retailers, and restaurants.
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