UPDATED: Dallas-based Henry S. Miller forced into bankruptcy

On October 24, 2008, a Dallas jury awarded damages in excess of $12 million against Miller and its former agent, Steven Defterios, finding that they had committed fraud and made negligent misrepresentations to certain partnerships managed by BNC Real Estate. On December 1, 2008, the 14th District Court of Dallas County, Texas, entered Final Judgment2 in excess of $8.9 million, plus post-judgment interest, against Miller and Defterios in favor of seven of the nine partnerships.

The state court case, Dallas Bayou Bend Ltd., et al. v. Henry S. Miller Commercial Co., cause no. 06-12902-A, centered around Miller’s representation of James Flaven, a Connecticut resident, in his failed attempt to purchase eight apartment complexes and one office building from the BNC entities. Miller’s agent claimed that Flaven was the scion of a prominent New England real estate family and that Miller had verified that Flaven was to receive adequate funding for the deal from a family trust. When the deals fell apart, it was learned that Mr. Flaven was actually a truck driver with no family money.

The partnerships were represented in the state court trial by Marc R. Stanley and Roger L. Mandel of Stanley, Mandel & Iola, L.L.P., in Dallas. Howard Marc Spector of Spector & Johnson PLLC is representing the partnerships in the involuntary bankruptcy.

“This case is a real tragedy for the partnerships’ investors. The savings of many hAard-working people were wiped out by the actions of Miller. Now, Miller is refusing to pay what it owes and the partnerships must act again to protect their investors.” said Stanley.

In the case filed against Henry S. Miller Commercial Co., LLC by Mr. Stanley today, please understand that no final decision or order has been issued.

We are disappointed that Mr. Stanley and his clients filed the involuntary bankruptcy action which was filed in bad faith.

An appeal in the underlying lawsuit was filed shortly after the case was tried in the Dallas County District Court. We are awaiting a decision from the Court of Appeals and look forward to a favorable outcome. As a result, Mr. Stanley’s and his clients’ claims are now being disputed and have been disputed since their inception.

Additionally, Henry S. Miller Commercial Co., LLC, which is an on-going business, and the Henry S. Miller Family of Companies will continue to service and maintain their customer relationships and businesses in their customary professional manner.

Henry S. Miller real estate professionals are closing in on nearly 100 years of real estate services for clients and will continue to do so.