Plaintiff’s Second Amended Complaint alleges six counts against Defendant: (1) breach of contract (2) open account (3) unjust enrichment (4) constructive trust (5) attorney’s fees and (6) fraudulent transfer arising under Arkansas’ Uniform Voidable Transfers Act (“UVTA”). Plaintiff further alleges that Defendant personally frustrated Plaintiff’s efforts to locate Haliron assets by burning equipment records for co-Defendant corporation JHL Rental. Plaintiff also alleges that Defendant was a member of Haliron for part of 2018 through August 2019, during which time a number of the allegedly fraudulent transactions occurred. Defendant Lynn Weems (“Defendant”) is identified in several transactions as having received money and real property in a number of transactions that Plaintiff alleges were performed in order to render Haliron insolvent. Plaintiff attached an exhibit to its Second Amended Complaint that contains an itemized list of specific financial and property transactions that Plaintiff alleges were done in an attempt to avoid liability on the debt. Plaintiff states that these transfers have rendered Haliron insolvent with regard to the debt owed to Plaintiff under the subcontract. 2 receiving a reasonably equivalent value in exchange. The case was then transferred to the United States District Court for the Western District of Arkansas. Plaintiff specifically alleges that in furtherance of this scheme, Haliron moved personal property out of Haliron’s name without 1 The initial case was brought in state court in Texas but was subsequently removed to the United States District Court for the Western District of Texas. Plaintiff further alleges that Haliron’s principles fabricated a number of sham transactions between themselves and other companies they own in order to avoid the debt. 115) on September 8, 2021, alleging generally that while the lawsuit against Haliron was pending, Haliron and its principles transferred both money and property out of Haliron to themselves, their relatives, and other companies they owned in an attempt to avoid the debt Haliron owes Plaintiff under the subcontract. Plaintiff filed its Second Amended Complaint (ECF No. It is also alleged that Haliron’s managing member, William Weems, admitted under oath that Haliron owes an unpaid balance to Plaintiff. Plaintiff alleges that through discovery, it obtained certain business records that indicate Haliron believes it owes up to $6.5 million to Plaintiff under the subcontract. Plaintiff filed the instant lawsuit on February 20, 2019, seeking to recover the debt alleged. Plaintiff alleges that Haliron still owes Plaintiff $7,910,687.68 under the subcontract. Plaintiff specifically alleges that Caribbean made two substantial payments to Haliron that were intended to cover the remaining debt owed to Plaintiff, but that Haliron failed to remit any such payments to Plaintiff. However, Plaintiff alleges that Caribbean had already paid Haliron for the debt owed to Plaintiff at the time Plaintiff inquired about the outstanding balance. Plaintiff states that Haliron’s asserted reason for not paying off Plaintiff’s debt was because it had yet to receive adequate payments from Caribbean. Plaintiff further alleges that throughout 2018, Plaintiff repeatedly asked Haliron when it would pay the remaining balance in full. Plaintiff states that Haliron’s only payment to Plaintiff occurred in February 2018, which totaled approximately $3.2 million. Plaintiff alleges that at least $9.7 million of that invoice was allocated for debts owed to Plaintiff under Plaintiff’s subcontract. Haliron invoiced Caribbean for approximately $21.3 million for the restoration project. Plaintiff alleges that it generated $11.1 million in costs and labor under its subcontract with Haliron. (“Plaintiff”) as a subcontractor under its prime subcontract with Caribbean. Haliron then hired Plaintiff Foreman Electric Services Inc. Caribbean hired Haliron Power LLC (“Haliron”) as a subcontractor on the restoration project. (“Caribbean”) to repair some of the damage. In response, the United States Army Corps of Engineers hired Flour Daniel Caribbean Inc. BACKGROUND In fall 2017, a series of hurricanes hit Puerto Rico and damaged its power grid. The Court finds the matter ripe for consideration. 4:19-cv-4157 HALIRON POWER, LLC, WILLIAM WEEMS, LYNN WEEMS a/k/a JESSICA LYNN WILLIAMS, DIVINE POWER, LLC, JHL RENTAL LLC, HOLDEN TRAFFIC LLC, and ARROWHEAD ESTATES LLC DEFENDANTS ORDER Before the Court is Defendant Lynn Weem’s (a/k/a Jessica Lynn Williams) Motion to Dismiss Plaintiff’s Second Amended Complaint (ECF No. 191 IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF ARKANSAS TEXARKANA DIVISION FOREMAN ELECTRIC SERVICES, INC.
0 Comments
Leave a Reply. |