A brief Nate Paul update

For those of you who like this sort of thing. You know who you are.

The Texas Supreme Court denied an appeal on Friday by indicted real estate developer Nate Paul to reverse a judgment against him worth millions of dollars in his case opposing the Mitte charitable foundation. The clash mired both sides in a protracted legal battle and roped Paul into allegations against impeached and suspended Attorney General Ken Paxton.

The Roy F. and Joann Cole Mitte Foundation invested millions in Paul’s World Class companies in 2011. Following a dispute over access to World Class’s financial records and getting their money back, the Mitte Foundation sued Paul’s companies in 2018. In July 2019, the parties reached a settlement agreement to have World Class buy Mitte’s interest in the companies for $10.5 million, according to court records.

Within days of that agreement, the FBI raided Paul’s headquarters, and the agreement collapsed. That federal investigation, which is unrelated to the Mitte lawsuit, led to Paul’s indictment in June 2023 on eight counts of making false statements and reports to lending institutions while seeking over $172 million in loans, according to federal records. Paul has pleaded not guilty to all counts, and a trial is set for July 2024.

In February 2021, an arbitrator sided with the Mitte Foundation on its claims of breach of contract and breach of fiduciary duty and awarded Mitte over $1.9 million in damages. The arbitrator also ordered World Class to terminate the limited partnership companies involved in the case, sell their properties and “directed that Mitte receive its pro-rated share of the profits,” according to a memorandum opinion from the Texas Third District Court of Appeals.

Paul fought the judgment and awards in the case, on various grounds.

Paul later appealed the case to the Texas Supreme Court. Friday’s decision will put an end to the case, said Mitte Foundation attorney Ray Chester with McGinnis Lochridge.

“The Texas Supreme Court, in today’s ruling, put an end to the frivolous appeals of Mr. Nate Paul and the thirteen different law firms he has employed,” Chester said in a statement. “Our arbitration judgment against Mr. Paul personally is affirmed, and the receiver can now proceed to close the sales of the partnership properties which will result in a significant additional recovery for our client, the Roy F. and Joann Cole Mitte Foundation. This will allow the Mitte Foundation to continue and expand their tireless philanthropic efforts.”

See here for some background. Paul has bigger problems now. I don’t think this ties into the bigger picture in any way, but it’s a news item that related to stuff I had blogged about before, so there you go.

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