A dispute over cash, data and management of a Katy Asian City retail middle has moved into Harris County district court docket.
Robert Lin, individually and derivatively on behalf of United Max Katy LLC, and buyers Peter and Karen Hsieh filed swimsuit in opposition to Cheng-Ching Lin, also called Josie Lin, and United Max Katy LLC.
The lawsuit, filed underneath Trigger No. 2025-27658, alleges that Josie Lin denied firm members entry to monetary data and prompted United Max Katy LLC to tackle hundreds of thousands of {dollars} in loans tied to disputed enterprise transactions.
The allegations haven’t been confirmed in court docket.
Katy Asian City Retail Heart
In keeping with the petition, United Max Katy LLC was fashioned as an actual property funding firm to develop and function industrial property.
The corporate’s present property is positioned in Katy Asian City.
The petition states that UMK owns and operates a single-story retail middle with 17 industrial items. Fifteen items, recognized as A3 via A17, are owned by UMK and supplied for lease.
Robert Lin and the Hsiehs allege they’re members of UMK and contributed vital six-figure sums to the corporate.
The lawsuit says Josie Lin is a managing member of UMK.
AMA Kitchen Lease Questioned
The dispute traces a part of its origin to March 2022.
The petition alleges Josie Lin introduced that items A3 via A6 can be leased to AMA Kitchen.
The plaintiffs declare they weren’t advised that AMA Kitchen was managed, associated to, or owned by Josie Lin. Additionally they allege the restaurant build-out can be charged to, and paid for by, UMK.
In keeping with the lawsuit, UMK entered right into a $5.5 million mortgage with Most popular Financial institution in March 2022. Plaintiffs allege among the cash was used to repay a Mint Financial institution mortgage, whereas one other portion was used to pay for the AMA Kitchen build-out.
The petition additionally alleges UMK entered right into a $2 million mortgage with New Period Life Insurance coverage in June 2021.
The plaintiffs allege Josie Lin prompted UMK to enter into $7.5 million in loans between June 2021 and March 2022. They declare the loans have been made with out sufficient disclosure of monetary want or profit to UMK, aside from the disputed build-out for a tenant they allege Lin owned or managed.
Steadiness-Sheet Entries Increase Questions
The lawsuit additionally challenges a number of balance-sheet entries.
In keeping with the petition, a December 2022 stability sheet confirmed an unidentified “member” owed UMK about $1.085 million. It additionally confirmed an entity recognized as UMK Elite owed UMK about $3.05 million.
The plaintiffs describe these entries as examples of bizarre objects on UMK’s monetary data.
The lawsuit additional alleges that United Max Katy Elite LLC was fashioned by Josie Lin, who was listed as managing member and registered agent.
In keeping with the petition, a December 2023 stability sheet additionally recognized a number of receivables or advances. These included about $471,800 allegedly owed by Asunitedall, about $159,903 owed by JL Resolution, about $2.5 million owed by UMK Elite, and a “companion advance” of about $1.58 million.
The plaintiffs allege a number of entities listed as owing cash to UMK are owned or operated by Josie Lin.
Additionally they allege the companion advance violated the UMK Firm Settlement.
No court docket has dominated on these claims.
Plaintiffs Search Firm Data
The lawsuit says Robert Lin and the Hsiehs requested a number of occasions for explanations and entry to UMK books and data.
They allege Josie Lin refused to supply full entry or a transparent rationalization.
On October 30, 2024, attorneys for the plaintiffs despatched a proper written request to examine and duplicate UMK’s books and data. The request included firm data, governing paperwork and tax data.
The petition alleges the request was initially ignored and later met with a requirement that plaintiffs signal a confidentiality settlement earlier than any inspection.
The plaintiffs contend that neither Texas regulation nor UMK’s firm settlement required a confidentiality settlement earlier than inspection.
They additional allege Josie Lin and UMK maintained that some fundamental data wouldn’t be offered even when a confidentiality settlement was signed. These data allegedly included the corporate settlement, working settlement, amendments and tax data, together with Schedule Okay-1 types.
Texas Data Regulation Cited
The lawsuit cites Part 101.502 of the Texas Enterprise Organizations Code.
That part supplies that, except an LLC’s governing paperwork say in any other case, a member or assignee could study and duplicate firm data after a written demand stating a correct goal.
The statute additionally permits inspection via an agent, accountant or legal professional.
The petition asks the court docket to order Josie Lin and UMK to permit the plaintiffs and their representatives to look at and duplicate UMK’s books and data.
The plaintiffs additionally cite the 1981 Texas appeals case Chavco Funding Co. v. Pybus. In that case, the court docket affirmed a writ of mandamus permitting inspection of company books and data.
The petition argues the identical precept helps the plaintiffs’ demand to assessment UMK data.
Separate United Max Katy II Enchantment
The lawsuit additionally refers to separate litigation involving United Max Katy II LLC.
In a January 2025 appellate opinion, the First Court docket of Appeals stated Cheng-Ching Lin, also called Josie Lin, filed a petition for writ of mandamus difficult two trial-court discovery orders dated January 8, 2025.
These orders compelled manufacturing of firm paperwork, books and data in litigation involving Japanese JV Holdings LLC, individually and derivatively on behalf of United Max Katy II LLC, and Peter and Karen Hsieh.
Texas First Court docket of Appeals denied Lin’s mandamus petition and her emergency request for momentary reduction.
That ruling left the invention orders in place. It didn’t determine the deserves of the underlying allegations.
Claims and Damages Sought
The lawsuit asserts claims for the fitting to look at and duplicate data, mandamus, indemnity and breach of duties.
The plaintiffs allege Josie Lin owed duties to UMK and its members, together with duties of fine religion, loyalty, candor and disclosure.
They declare she breached these duties by allegedly utilizing UMK cash for a tenant build-out, making or permitting loans or advances to associated entities, granting a companion advance, and putting pointless debt on UMK.
The plaintiffs search entry to UMK data, legal professional’s charges, prices, direct damages, consequential damages, curiosity, exemplary damages the place allowed, disgorgement, forfeiture and different equitable cures.
Additionally they search financial reduction of greater than $250,000 however no more than $1 million, together with non-monetary reduction.
No Ruling on Allegations
The case stays a civil dispute based mostly on allegations in a court docket submitting.
No court docket has decided whether or not Josie Lin or United Max Katy LLC violated Texas regulation, breached duties, misused firm funds or improperly withheld data.
NewsBlaze will report additional developments because the case proceeds.
Clarence J. Walker is a senior authorized reporter and information editor for HoustonNewsToday.com. He may be reached at HoustonNewsToday@yahoo.com.
