David McDougald Wins $1.1 Million Jury Verdict Against Builders in Fraud Case

HOUSTON – Trial lawyer David A. McDougald, Of Counsel to The Kim Law Firm in Houston, recently obtained a final judgment for his homebuyer client after a jury awarded more than $1.1 million for the fraudulent conspiracy of the home’s builders.

Mr. McDougald represented Jeff Gainsborough against brothers Gilad and Oren Lutfak, accused of deceptive trade practices, fraud and conspiracy in the construction of a substandard four-story home in Houston’s Montrose neighborhood. The house was purchased as essentially new construction for $484,000, but required $133,000 in water leakage repairs after move-in.

Mr. McDougald won the unanimous jury verdict despite the fact that his client had been induced to sign two waivers that would have released Gilad Lutfak had the jury not seen through the fraud. The jury award included $750,000 in punitive damages.

“This was a terrible case of fraud and incompetence in the building of this structure,” says Mr. McDougald, an experienced commercial litigator. He has been lead counsel on a variety of cases, including real estate fraud and deceptive trade practices, contract disputes, tortious interference, trade secrets, restrictive covenants, construction, property damage, foreclosure, business divorces and violations of the Texas Open Meetings Act. His clients benefit from his deep understanding of the oil and gas, construction, real estate and securities industries.

The unanimous jury verdict was issued earlier this year, and the judgment by state District Judge R.K. Sandill was delivered in late September after Gilad Lutfak declared bankruptcy. The final judgment was more than $830,000. The case is Jeff Gainsborough v. Gilad Lutfak, No. 2012-73748, in the 127th District Court in Harris County.

The Kim Law Firm recovered more than half a billion dollars for clients through aggressive litigation and has successfully defended clients against takings of at least a half billion dollars. The firm represents entrepreneurs, business startups, midsized companies and established national and international corporations in everything from contract and complex business disputes to insider trading allegations, trade secrets and other intellectual property disputes. For more information, please visit http://www.thekimlawfirm.com.