R L Wilson Law Firm files suit against Dallas-based real estate investment operation

Suit was filed in the Bexar County District Court by R L Wilson Law Firm client Roland Rodriguez against Dallas-based Yorkstreet Properties, and its affiliate Yorkstreet Homes. In his suit, Mr. Rodriguez is alleging that the Yorkstreet companies have engaged in illgeal practices relating to the management of several investment properties he purchased through the company.

After the closing upon the sale of each of these properties our client entered into a verbal management agreement whereunder Yorkstreet agreed to locate tenants, to collect all rents as they become due, to tender to our client a monthly accounting of rents received and expenses paid, and to remit to the various mortgage lenders all rental income (if any), less any sums paid out. For a period of time after the closings, Yorksteet abided by the obligations of the management agreement. In exchange for their services, Yorkstreet retained a portion of the rents they collected as a “management fee.”

Eventually, Yorkstreet stopped remitting payment to the investor's mortgage lenders, even though rents were being collected. Despite the fact that they never maintained any claim to right, title or interest in the real properties, or the rental proceeds they had collected, Yorkstreet kept the rental proceeds.

As the result of Yorkstreet's refusal to remit the rental proceeds they had collected, each of the properties was foreclosed in accordance with the applicable Deeds of Trust. Mr. Rodriguez' interest in the properties, including future interest in rental proceeds, re-sale value, and tax deductions was forever lost.

In the suit, Rodriguez claims that Yorkstreet and its princiapl breached the management agreement, breached a fiduciary duty, converted the rental payments and committed fraud. In addition, Rodriguez alleges that Yorkstreet violated the texas Deceptive Trade Practices Act.

There is not yet a trial date in the case.