Maverick County grapples with lawsuit filed by UMB Bank as Trustee of Detention Center Bondholders

By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2017

Maverick County Commissioners Court continues to grapple with the pending federal lawsuit filed by UMB Bank, N.A. as Trustee of the Maverick County Detention Center at its regular meeting held on Monday, February 13, 2017.

According to Agenda item No. 40 of the February 13th Commissioners Court meeting, Maverick County Commissioners Court went into Executive Session to consult with Maverick County Legal Counsel Robert “Woody” Wilson regarding the pending federal lawsuit in U.S. District Court for the Western District of Texas, Del Rio Division, against the Maverick County Public Facility Corporation, an instrumentality of Maverick County, Texas created to own and operate the now closed 625 Bed Maverick County Detention Center.

The federal lawsuit alleges that Maverick County Public Facility Corporation and Maverick County breached their contract and owes UMB Bank, N.A. as Trustee of the Bondholders ($42.2 Million) the total sum of $1,019,939.67 plus reasonable attorney’s fees, pre-judgment and post-judgment interest, court costs and expenses.  The lawsuit alleges that the Maverick County Public Facility Corporation leased the Detention Center to Maverick County and that Maverick County converted project revenues to its own use for payment of operating expenses of the Detention Center before paying any funds to the Bondholders through UMB Bank, N.A. as their Trustee.

Maverick County has been dealing with this lawsuit since August 3, 2015 in federal court in Del Rio, Texas.  According to public statements made by Maverick County Commissioners in foreign news media, Maverick County is negotiating with UMB Bank, N. A. and the Bondholders on a settlement, including the possibility of Maverick County buying the closed Maverick County Detention Center at a significant discount of its original $42.2 Million price tag.

At the February 13th meeting upon returning from Executive Session, Maverick County Commissioner Precinct 1 Jerry Morales made a motion “to authorize legal counsel to proceed as directed in Closed Session,” which was seconded by Commissioner Roberto Ruiz.  During discussion, County Judge David R. Saucedo asked if there were any questions or comments from the Commissioners on the motion.

Maverick County Auditor Sandra Watkins raised her hand and Judge Saucedo acknowledged her and allowed her to speak at the podium.  Watkins asked Commissioners Court that “I thought you had to state what your action is going to be” in Open Session.  Judge Saucedo replied to Watkins “That’s your question?”  Judge Saucedo told Watkins that’s why Maverick County has legal counsel to advise Commissioners Court and to make sure legal counsel represents the best interests of Maverick County and its taxpayers. Judge Saucedo told Watkins that she had “gone beyond the realm of your job and responsibilities,” causing Watkins to apologize for asking the question.  Legal Counsel Wilson added that due to attorney-client privilege, Commissioners Court may direct legal counsel in Closed Session to take certain actions.

Maverick County Commissioners Court had no comments or questions and proceeded to unanimously approve Commissioner Morales motion.

Maverick County’s legal counsel received certain directives in Closed Session from Commissioners Court and will now proceed with whatever directives were given to him by Commissioners Court.