Developer Ben Israel’s Former Partners Fire Back Over Lawsuit
by March 24, 2008 12:00 am 86 views
It didn’t take long for Dixie Management Inc. CEO Ben Israel’s partners in Joyce Street LLC to respond to his Feb. 28 lawsuit against them alleging defamation and civil conspiracy.
On March 10, Tim Brooks of Taylor Law Partners in Fayetteville filed a response on behalf of Owen Bushaw, David Cannon and Joe Kleine accusing Israel of “malfeasance, conflict of interest and breach of fiduciary duties” in his management of Commerce Park I.
The trio collectively represents 57.1 percent ownership of the company.
Located at the corner of Old Missouri Road and Joyce Boulevard in Fayetteville, the 70,000-SF, four-building complex was completed in 2001 and is valued at nearly $7.7 million. Citing an e-mail from his three partners asking him to withdraw his voting interest in Joyce Street LLC sent Jan. 17, 2007, Israel accused them of attempting a “hostile takeover” of the company after he refused to comply.
On Feb. 15, the partners warned Israel and his attorney Derrick Davidson in another letter that they would seek legal remedy against Dixie because of the formation of Davidson Real Estate Partnership to manage Commerce Park I and other Dixie properties.
In their response, the partners said Israel had “no authority whatsoever” to enter into an arrangement between DMI and Davidson’s real estate company, calling it a “sham entity created for the purpose of insulating Israel and his entities from their creditors.”
Israel has been hit with nearly $7 million in liens from unpaid contractors during 2007 and several multi-million dollar foreclosures.
Brooks is married to Mary Beth Brooks, president and CEO of The Bank of Fayetteville, which was one of the first creditors to foreclose on an Israel/Dixie property.