LEGAL PROCEEDINGS
−Removed: We are the defendant in ongoing litigation with David Clapper and related parties (collectively, "Clapper”) regarding a multifamily property transaction that was to occur in 1998.
−Removed: In February 2011, after a jury trial, the Court awarded an approximately $60 million judgment against an affiliate, American Realty Trust (ART).
−Removed: Clapper subsequently filed a suit in 2013 to enforce the ART judgement against ARI.
−Removed: The case has been ongoing since 2013 and is set for trial May 2021.
−Removed: We were the plaintiff in a lawsuit against Dynex Commercial, Inc.
−Removed: (“Dynex”) for failure to fulfill certain loan commitments.
−Removed: In January 2015, the court awarded us with a judgment of $49.0 million.
−Removed: We are pursuing all legal means to collect this award.
−Removed: However, due to the uncertainty of the collectability of the award, the receivable has been fully reserved.
−Removed: In February 2019, Paul Berger (“Berger”) filed a lawsuit against the Company, its directors, its officers and others that alleges that we completed improper sales and/or transfers of property with Income Opportunity Realty Investors, Inc.
+Added: We were a defendant in litigation with David Clapper and related entities (collectively, "Clapper”) regarding a multifamily property transaction that occurred in 1988.
+Added: The litigation led to a substantial judgment against our affiliate and Clapper subsequently sued numerous other entities including us in Federal Court to collect that judgment.
+Added: The case was tried to a jury in May 2021.
+Added: The jury found the defendants owed Clapper nothing and the Court issued a take nothing judgment.
+Added: Clapper subsequently filed and appeal to the US Fifth Circuit Court of Appeals.
+Added: In February 2019, Paul Berger (“Berger”) filed a lawsuit against us, our directors, our officers and others that alleges that we completed improper sales and/or transfers of property with IOR.
Berger requests that we pay off various related party loans to IOR and that IOR then distribute the funds to IOR's stockholders.
We intend to vigorously defend against the allegations.
−Removed: TCI own approximately 81.1% of IOR, whose common stock is traded on the NYSE American under the symbol “IOR”.
−Removed: Accordingly, we include IOR’s financial results in our consolidated financial statements.
−Removed: IOR’s primary business is investing in mortgage loans.
−Removed: In connection with the formation of VAA, ten of the properties that we contributed to the joint venture are subject to an earn-out provision that provides for a remeasurement of the value of those properties after a two-year period following the completion of construction.
−Removed: As of December 31, 2020, we have recorded a liability of $10.0 million, which we believe is the amount that will be required to settle our obligation.
−Removed: We have been unable to reach agreement with our joint venture partner on the remeasured value.
−Removed: As a result, the parties have filed for arbitration in accordance with the joint venture agreement.
+Added: The trial for this matter is scheduled for November 2022.
+Added: In connection with the formation of VAA, ten of the properties that we contributed to the joint venture were subject to an earn-out provision that provided for a remeasurement of the value of those properties after a two-year period following the completion of construction (the "Earn Out Obligation").
+Added: We were unable to reach agreement with our joint venture partner on the remeasured value, and as a result, the parties filed for arbitration in accordance with the joint venture agreement.
+Added: On July 13, 2021, we received the arbitration verdict in connection with our dispute on the measurement of the Earn Out Obligation, which determined that our position and claims were declined, and the position of Macquarie was fully accepted.
+Added: As a result, we were ordered to pay approximately $39.6 million to Macquarie to satisfy the Earn Out Obligation.
MINE SAFETY DISCLOSURES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.