Eagle Pass Independent School District sues Monsa, Ltd. for fraud and breach of contract
By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2017
The Eagle Pass Independent School District Board of Trustees authorized its General Counsel, Escamilla & Poneck, LLP, of San Antonio, Texas to file a lawsuit in state district court again (second time) against local real estate developer and contractor, Monsa, LTD. arising from certain promises made by Monsa, Ltd. representative Paco Mondragon to the local school district in exchange for their purchase of a 12 acre tract, which were allegedly not fulfilled and honored by Monsa, Ltd.
On January 10, 2017, the Eagle Pass Independent School District (EPISD) filed its second lawsuit against Monsa, Ltd. in the 293rd Judicial District Court in Maverick County, Texas alleging fraud in real estate transactions under Texas Business & Commerce Code Section 27.01, negligent misrepresentation, common law fraud, breach of contract, declaratory relief, and specific performance.
According to the lawsuit, “On or about December 9, 2008, a representative of Defendant Monsa, Ltd., Paco Mondragon, made a presentation to the Eagle Pass ISD Board of Trustees at a Board meeting regarding a proposed purchase of a twelve (12) acre tract of land upon which the School District could construct a new elementary school. During that presentation, Mr. Mondragon made certain representations about the tract of land, including the size of water pipes, existing utilities, and the development of roadways adjacent to the property. As a result of Mondragon’s presentation, on or about January 13, 2009, the Board of Trustees voted to accept Monsa, Ltd.’s proposal for the purchase of the twelve (12) acre tract to the District.”
The lawsuit further alleges that “On or about March 11, 2009 Monsa, Ltd. and EPISD entered into a contract for the purchase by EPISD of a twelve (12) acre tract of land for a total purchase price of $228,000.”
The lawsuit also alleges that “EPISD constructed an elementary school (Armando Cerna Elementary School) at the twelve acre site. EPISD had to construct a proration of roadway from the existing city streets into the entrance of the school in order to have access to the campus. Mr. Mondragon represented at the Board meeting on December 9, 2008 that the main roadway to the site would be constructed by Monsa, Ltd.; however, Monsa, Ltd. did not complete the roadway and it remains unfinished.”
The local school district previously sued Monsa, Ltd. concerning these matters in the 293rd Judicial District Court in Maverick County, Texas (Cause No. 11-04-26412) and the parties reached a settlement agreement in which Monsa, Ltd. would “assume responsibility for installation of the remainder of the road to the end of the school property line on Mondrgaon Blvd….and comply with all pertinent City of Eagle Pass requirements…and have a period of 24 months from June 24, 2013…to complete the work described” in exchange for the EPISD dismissing the lawsuit against Monsa, Ltd.
However, Monsa, Ltd. has allegedly breached the parties settlement agreement and failed to fulfill its obligations and responsibilities to complete the roadway and comply with City of Eagle Pass requirements. Thus, this second lawsuit had to be filed against Monsa,Ltd. to require it to honor its obligations under the previous settlement agreement.
The EPISD alleges that Monsa, Ltd. committed fraud in the sale of real estate to the District in both the sale of the twelve (12) acre tract and subsequently in breaching the parties Settlement Agreement; committed Negligent Misrepresentations to the EPISD; committed fraud; and committed a breach of contract.
The EPISD lawsuit seeks declaratory relief and specific performance of Monsa, Ltd.’s promises and representations, including compliance with the parties Settlement Agreement; completion of all work necessary to finish the roadway; liquidated damages; exemplary damages due to actual fraud; prejudgment and post-judgment interest; and attorney’s fees and court costs.
Taxpayers of the EPISD have had to spend several hundreds of thousands of dollars to open a roadway to gain access to Armando Cerna Elementary School, which should have been paid and done by Monsa, Ltd. many years ago.
The EPISD is requesting a trial by jury.
