HOUSTON – In a complex six-week case involving the construction of Houston Midtown apartments, a Harris County jury awarded Mid Main Properties LLP $32.5 million. 

The jury found that Patriot Contracting LLC, its owner and bond insurers Travelers must pay Mid Main. The award included about $17.5 million in punitive damages, $8 million in actual damages and $7 million in attorneys’ fees. 

The case, in state District Judge Rabeea Collier’s court, centered on work done at a four-building, multi-use Midtown property on Main Street near the Ensemble/HCC Metro train stop. The apartments were a continuation of developer Bob Schultz’ vision for an Austin-like Midtown and were adjacent to an area where he had already developed an eclectic mix of eateries, venues and businesses.  

In 2014, Mid Main hired Patriot, owned by Stephen J. Friedman, as the general contractor to construct four residential towers and a parking garage. But Patriot did defective work, overcharged and eventually abandoned the project in 2017. When Mid Main tried to get the subcontractors to finish the job, Patriot owner Mr. Friedman vindictively tried to block the work. 

AZA lawyer Nathan Campbell told jurors that not only did Patriot and Mr. Friedman try to destroy the complex they abandoned, but Travelers insurance also refused to pay on the bond to Mid Main or the subcontractors.  

“You are here as the conscience of the community to deliver a message about what happens when someone maliciously goes out to destroy another human being,” AZA co-founder John Zavitsanos told the jury.  

AZA partner Shahmeer Halepota said: “The jury’s unanimous verdict underscores Mid Main’s six-year struggle to overcome Patriot and Mr. Friedman’s efforts to bankrupt, sabotage, and destroy the project after they quit. The jury clearly understood the tremendous damage that Patriot and Mr. Friedman had inflicted on Mid Main.” The AZA team also included Kelsi Stayart White and Emily Adler.

Texas Lawyer covered this case in “Bad Day for Plaintiff: $32.5M Houston Verdict on Counterclaims” (subscription required).

The case is Patriot Contracting LLC v HERC Solutions USA LLC in Harris County, case number 2017-19892. 

AZA, or Ahmad, Zavitsanos & Mensing, is a Houston-based law firm that is home to true courtroom lawyers with a formidable track record in complex commercial litigation, including energy, healthcare, intellectual property and business dispute cases. AZA is recognized by Chambers USA 2023 as among the best in Texas in commercial law and intellectual property; has been listed by U.S. News – Best Lawyers’ Best Law Firms as one of the country’s best commercial litigation firms for 11 years running; has been named Litigation Department of the Year by Texas Lawyer three times, including for 2021; and was previously dubbed a Texas Powerhouse law firm by Law360.