Henry S. Miller Fights Frivolous Lawsuit

DALLAS, TX - December 11, 2009 --  Henry S. Miller Commercial, LLC (“Commercial Co.”), will be filing with the United States Bankruptcy Court for the Northern District of Texas, an agreed Order for Relief, converting an involuntary bankruptcy case filed against them by Dallas Clubview Gardens, L.P., Woodside Apartments, L.P., and BNC Lake Jackson Village, L.P. various entities controlled by real estate investor Barry Nussbaum (the “Nussbaum Entities”) to a voluntary bankruptcy case under Chapter 11. This means that Commercial Co. will be reorganizing its debts within the context of a voluntary bankruptcy proceeding. Commercial Co. is a formerly operating commercial brokerage company which is only minimally operational at this time and has no employees. The involuntary bankruptcy filing against Commercial Co. and its subsequent conversion to a Chapter 11 proceeding of this one entity does not impact in any way the ongoing successful operations of Dallas-based Henry S. Miller Brokerage, LLC, which continues to operate normally and remains well-respected throughout Texas.

The Nussbaum Entities were sellers of various commercial real estate properties in various transactions with a potential purchaser named Jim Flaven. Flaven represented that he had millions of dollars available to purchase commercial properties in Dallas through a family trust. It turned out that Flaven was a not a real estate investor, but was instead a sociopathic truck driver who never had an ability to close the transactions with the Nussbaum Entities. Commercial Co. and its representatives were as much victims of Flaven’s misdeeds and dishonesty as were the Nussbaum Entities. When the Nussbaum Entities realized that Flaven had fled the state and would never be able to pay for his misdeeds, the Nussbaum Entities filed a frivolous lawsuit against Commercial Co, saying that they (as broker) were somehow responsible for Flaven’s misdeeds, even though Nussbaum received $500,000 in earnest money from Flaven. Miller Commercial sent the matter to its insurance company for handling which, in turn, hired an attorney to represent Miller Commercial’s interests. The case was mishandled at trial, and a judgment was entered against Commercial Co., for which Commercial Co. has brought a malpractice and negligence lawsuit. That case is currently pending.

The judgment obtained by the Nussbaum Entities against Commercial Co is currently on appeal, requesting a remand for a new trial.

Dallas-based Henry S. Miller Brokerage, LLC is Texas’ one of the largest independent full service commercial real estate firms, with five offices in Texas. Established in 1914, Henry S. Miller is one of the oldest and most respected companies in Texas and has gained a reputation for service and integrity that is unequaled in the industry. Henry S. Miller Brokerage looks forward to many more years of leadership and service to its clients.

Visit HSM online for more information: www.henrysmiller.com/commercial