Professional Documents
Culture Documents
Velva L. Price
District Clerk
Travis County
No. D-1-GN-18-004770 D-1-GN-18-004770
Daniel Smith
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TRAVIS COUNTY, TEXAS, § 419th JUDICIAL DISTRICT COURT
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Plaintiff §
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§
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§
MUSTANG KIMBRO ESTATES, LLC, §
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URIEL CASTRO, eXp REALTY, LLC, and §
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STEPSTONE REALTY, LLC, §
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Defendants § TRAVIS COUNTY, TEXAS
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APPLICATION FOR TEMPORARY AND PERMANENT INJUNCTIONS
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TO THE HONORABLE COURT:
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Numerous Travis County families have been defrauded by Mustang Kimbro
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Estates, LLC, and Uriel Castro, a real estate sales agent whose sponsoring broker at the
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time of these acts was eXp Realty, LLC. His sponsoring broker is now Stepstone Realty,
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LLC. Rather than receiving the legal one acre lots they were promised, these families
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These misrepresentations include providing unapproved plats that gave the appearance
Travis County asks the Court to do two things. First, Travis County asks the
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Court to help the victims by rescinding their contracts and awarding them damages.
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Second, Travis County asks the Court to punish the Defendants for their illegal
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1. DISCOVERY CONTROL PLAN
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1.1 Discovery in this case should be conducted under level 2 pursuant to Rule
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190.3 of the Texas Rules of Civil Procedure.
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2. PARTIES
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2.1 Plaintiff is Travis County, Texas, acting by and through its County Attorney,
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David Escamilla, under the enforcement authority granted to it by Section 232.005 of the
Texas Local Government Code, and Section 27.015 of the Texas Business and Commerce
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Code. This suit is brought pursuant to the request of the Travis County
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Commissioners Court, as authorized by Subchapter A of Chapter 232 of the Texas
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Local Government Code, dealing with the regulation of subdivisions, and pursuant to
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Section 27.015 of the Texas Business and Commerce Code, dealing with fraud in real
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estate transactions.
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Kimbro) is a limited liability company doing business in Travis County, Texas, which
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2.3 Defendant Uriel Castro is a managing member of Mustang Kimbro and a real
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2.4 Defendant eXp Realty, LLC, is a foreign limited liability company that may be
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served through its registered agent, Corporation Service Co. dba CSC-Lawyers
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Incorporating Service Co., 211 E. 7th St., Suite 620, Austin, TX 78701.
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2.5 Defendant Stepstone Realty,LLC, a Texas real estate broker, may be served by
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serving its registered agent, Angela Lynne Francis at 400 Britni Loop, Kyle, Texas 78640,
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or wherever she may be found.
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3. JURISDICTION AND VENUE
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3.1 This Court has jurisdiction over this matter pursuant to section 232.005 of the
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Texas Local Government Code and sections 27.015 and 17.47(b) of Texas Business and
Commerce Code.
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3.2 The damages sought are within the jurisdictional limits of the court. By this
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lawsuit, Travis County seeks monetary relief over $200,000.00 but not more than
3.3 Venue is proper in Travis County as it is the county in which all or a substantial
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part of the events or omissions giving rise to Plaintiff’s claim occurred (Tex. Civ. Prac. &
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4. APPLICABLE LAW
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A. Subdivision Laws
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4.1 An owner that divides a tract of land located in unincorporated Travis County
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must have a plat prepared. 1 None of the exceptions to this requirement are applicable to
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4.2 The plat must be filed and recorded with the Travis County clerk.2
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4.3 A plat cannot be filed or recorded unless it is approved by the Travis County
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commissioners court. 3
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4.4 A subdivider cannot use the subdivision’s description in a deed of conveyance, a
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contract for a deed, or a contract of sale or other executory contract to convey that is
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delivered to a purchaser unless the plat is approved and filed with the Travis County
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Clerk.4
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such an act is prima facie evidence of an attempt to defraud. 5
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B. Fraud and Deceptive Trade Practices
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Fraud in a real estate transaction is a false representation of a material fact that is
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(1) made to a person for the purpose of inducing that person to enter into a contract;
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4.7 Such fraud is a deceptive trade practice that can be prosecuted by the county
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attorney. 7
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4.8 The county attorney may seek (1) injunctive relief; (2) civil penalties of up to
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$20,000 per violation; and (3) a judgment to compensate buyers for actual damages or to
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restore money or property which may have been acquired by means of any unlawful
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act or practice.8
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5. FACTUAL ALLEGATIONS
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5.1 On August 24, 2018, Plaintiff filed in this matter its Request for Temporary
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Restraining Order and Application for Temporary and Permanent Injunctions, which
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Plaintiff incorporates herein by reference.
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A. Mustang Kimbro Estates, LLC, is formed and acquires the Property.
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5.2 Mustang Kimbro, was formed on June 1, 2017. Its managing members are Uriel
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5.3 In June 2017, Mustang Kimbro purchased Lots 4 and 5 of the Kimbro Road
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Estates subdivision (hereinafter referred to as “the Property”), located outside the city
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limits of Manor and in Travis County. Lot 4 is 10.013 acres, located 12542 Kimbro Road;
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Lot 5 is 13.74 acres, located at 12522 Kimbro Road. Together the Property consists of
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5.4 Mustang Kimbro and Uriel Castro began advertising one-acre tracts for sale
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shortly after purchasing the Property. At that time, Uriel Castro was a license real estate
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5.5 Part of their sales pitch was the presentation of a survey showing that the
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Property had been divided into 22 lots, 18 of which were available for residential use.
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5.6 Between August 2017 and March 2018, Mustang Kimbro and Uriel Castro sold
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thirteen one-acre tracts on the Property. During this entire time Uriel Castro was a
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license real estate sales agent whose sponsoring broker was eXp Realty, LLC. The one
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acre lots were sold to:
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A. Benito Noee Vazquez purchased lot 10 on August 31, 2017, for $89,900.00.
Uriel Castro signed the contract 9 and the deed 10 on behalf of Mustang
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Kimbro.
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B. Irma Gomez and Joaquin Melchor purchased lot 11 on August 31, 2017,
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for $79,900.00. Uriel Castro signed the contract 11 and the deed 12 on behalf
of Mustang Kimbro.
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C. Mayra Vasquez Martinez purchased lot 12 on August 31, 2017, for
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$89,900.00. Uriel Castro signed the contract 13 and the deed 14 on behalf of
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Mustang Kimbro.
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D. Jose Ernesto Mendoza-Duarte and Iris Lopez Mendoza purchased lot 18
on August 31, 2017, for $79,900.00. Uriel Castro signed the contract 15 and
the deed 16 on behalf of Mustang Kimbro. ct
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E. Felix Zarate and Maria Pantoja purchased lot 15 on September 7, 2017, for
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$70,000.00. Uriel Castro signed the contract 17 and the deed 18 on behalf of
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Mustang Kimbro.
September 14, 2017, for $89,900.00.19 Uriel Castro signed the deed 20 on
behalf of Mustang Kimbro.
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October 20, 2017, for $99,900.00. Uriel Castro signed the contract 21 and the
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9 Exhibit 1.
10 Exhibit 2.
11 Exhibit 3.
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12 Exhibit 4.
13 Exhibit 5.
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14 Exhibit 6.
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15 Exhibit 7.
16 Exhibit 8.
17 Exhibit 9.
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18 Exhibit 10.
The Unimproved Property Contract is attached as Exhibit 11.
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20 Exhibit 12.
21 Exhibit 13.
22 Exhibit 14.
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H. Francisco Solis Ponce and Juan Antonio Gallegos Montalvo purchased lot
17 on October 27, 2017, for $99,900.00. Uriel Castro signed the contract 23
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and the deed 24 on behalf of Mustang Kimbro.
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I. Francisco Garcia Monroy, Elena Jaimes Dominguez, Isidro Sanchez
Hernandez, Giovanni Garcia Jaimes, and Berenice Garcia Jaimes
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purchased lot 14 on January 8, 2018, for $109,900.00. Uriel Castro signed
the contract 25 and the deed 26 on behalf of Mustang Kimbro.
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J. Juan Guerrero purchased lot 16 on January 23, 2018, for $91,250.00. Uriel
Castro signed the contract 27 and the deed 28 on behalf of Mustang Kimbro.
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K. Jose I. Avelar, Jova Solis, Vanessa Avelar-Solis, Jose C. Martinez, and Irma
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M. Quiros purchased lot 20 on February 9, 2018, for $109,900.00. Uriel
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Castro signed the contract 29 and the deed 30 on behalf of Mustang Kimbro.
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L. Alvaro Lopez purchased lot 22 on March 6, 2018, for $105,000.00. Uriel
Castro signed the contract 31 and the deed 32 on behalf of Mustang Kimbro.
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Manuel Sanchez and Bertha Caballero purchased lot 13 on January 29,
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2018, for $109,900.00. Uriel Castro signed the contract 33 and the deed 34 on
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5.7 In each of these real estate transactions, Mustang Kimbro and Uriel Castro
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entered into an Unimproved Property Contract with the consumers. Attached to each
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contract, except one, is a survey describing the subdivision of the property into twenty-
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two lots.
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23 Exhibit 15.
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24 Exhibit 16.
25 Exhibit 17.
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26 Exhibit 18.
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27 Exhibit 19.
28 Exhibit 20.
29 Exhibit 21.
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30 Exhibit 22.
Exhibit 23.
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32 Exhibit 24.
33 Exhibit 25.
34 Exhibit 26.
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5.8 In addition, each Unimproved Property Contract stated that it was not for use in
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condominium transactions.
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5.9 Neither the closing documents (the deeds, the Real Estate Lien Notes, and the
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Deeds of Trust), nor the Unimproved Property Contracts contain a legal description of
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the property that was conveyed to the consumers. Instead, these documents describe
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the property by address and unit number. However, the address used, 12542 Old
Kimbro Road, is the address for Lot 4 of the Kimbro Road Estates. This address is
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insufficient to describe any of the lots conveyed since Lots 4 and 5 have not been legally
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re-platted and subdivided. Additionally, two of the lots sold are located solely within
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Lot 4, four of the lots sold are located within Lots 4 and 5, and six of the lots sold are
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5.10 None of the contracts, Warranty Deeds, Real Estate Lien Notes, or Deeds of Trust
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related to the Property’s subdivision and sales have been filed in the real property
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C. After selling at least 12 lots, Mustang Kimbro Estates and Uriel Castro
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5.11 On July 6, 2018, Mustang Kimbro submitted a subdivision application – with plat
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and site plan – to Travis County’s Transportation and Natural Resources (TNR)
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division.
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5.12 Travis County’s review began once Mustang Kimbro paid the required review
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5.13 Mustang Kimbro’s proposal was to subdivide Lots 4 and 5 into three lots. Two of
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the lots would be smaller and would face Kimbro Road. The third lot would be about 18
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acres for residential use.
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5.14 After receiving Mustang Kimbro’s application, TNR asked Uriel Castro whether
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Mustang Kimbro owned all of Lots 4 and 5. Uriel Castro lied to TNR and claimed that
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Mustang Kimbro owned all of the Property.
5.15 Mustang Kimbro advised TNR that it planned to develop this third lot as a
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condominium regime with 18 units. This position is directly contradictory to that taken
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by Mustang Kimbro and Uriel Castro when they were selling portions of the Property. 35
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To date, Mustang Kimbro has not filed a condominium declaration for this lot.
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5.17 Mustang Kimbro’s proposed plat has not been approved by the Travis County
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subdivide the Property or to sell subdivided portions of the Property. Further, because
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they already sold at least twelve lots, Mustang Kimbro and Uriel Castro are attempting
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to develop property they do not own through the filing of the subdivision application
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5.19 For example, a Travis County permit is required to install and operate a septic
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system.
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5.20 Travis County does not grant permits for property that is not legally subdivided.
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Therefore, these consumers have been unable to secure permits that would allow them
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to legally dispose of their waste.
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5.21 In addition, the Property is currently without water service because of
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Defendants’ failure to legally subdivide the Property.
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6. CAUSE OF ACTION:
FRAUD IN THE SALE OF REAL ESTATE/DECEPTIVE TRADE PRACTICES
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6.1 Section 27.01 of the Texas Business and Commerce Code prohibits fraud in a
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transaction involving real estate. Mustang Kimbro and Uriel Castro have made false
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representations for the purpose of inducing consumers to enter contracts for the sale of
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one acre lots that do not exist. Those false representations were relied on by the
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6.2 The false representations made by Mustang Kimbro and Uriel Castro include:
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conveyed; and
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36 This is prima facie evidence of intent to defraud under Tex. Prop. Code §12.002(f).
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6.3 The consumers, in reliance on these false representations, entered into contracts
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to purchase real estate from Mustang Kimbro.
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6.4 By violating section 27.01 of the Texas Business and Commerce Code, Mustang
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Kimbro Estates, LLC, and Uriel Castro have also committed a deceptive trade practice
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that is actionable under section 17.46(b) of the Texas Deceptive Trade Practices-
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Consumer Protection Act. As the sponsoring broker of Uriel Castro, eXp Realty, LLC, is
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6.5 For these violations, the Travis County asks the Court to award (1) injunctive
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relief; (2) civil penalties of up to $20,000 per violation per Defendant; and (3) a judgment
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to compensate buyers for actual damages or to restore money or property which may
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7. INJUNCTIVE RELIEF
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7.1 A motion for Temporary Restraining Order was granted. Thereafter, Defendant
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7.2 For the reasons stated above, Plaintiff requests a Permanent Injunction, as
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from subdividing Lots 4 and 5 of the Kimbro Road Estates subdivision into smaller lots
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and selling those lots until such time as the Travis County Commissioners Court
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7.3 Travis County also asks the Court to issue Temporary and Permanent
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Castro to provide real estate brokerage services in connection with the marketing
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and/or sale of portions of Lots 4 and 5 of the Kimbro Road Estates subdivision until
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such time as the Travis County Commissioners Court has approved the re-platting and
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subdivision of the Property.
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7.4 Travis County is exempt from filing a bond for a temporary restraining order or
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temporary injunction under section 6.001 of the Texas Civil Practice and Remedies
Code.
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PRAYER
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8.1 For these reasons, Travis County, Texas, Plaintiff, asks that Defendant Uriel
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Castro be cited to appear and answer herein; and that upon final hearing the Plaintiff
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have judgment against Mustang Kimbro Estates, LLC and Uriel Castro and that the
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Court:
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B. Adjudge against Uriel Castro civil penalties in favor of Plaintiff in the amount
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C. Order Mustang Kimbro Estates, LLC, Uriel Castro, and eXp Realty, LLC, to
restore all money or other property acquired by means of unlawful acts or
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damages;
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E. Rescind all agreements entered into by and between Mustang Kimbro Estates,
LLC and the consumers;
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Estates, LLC, and its members, agents, employees, and representatives from
subdividing Lots 4 and 5 of the Kimbro Road Estates subdivision, and from
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selling any portion of those lots, until such time as the Travis County
Commissioners Court approves the subdivision of this property; and
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G. Issue Temporary and Permanent Injunctions enjoining Stepstone Realty, LLC,
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from permitting or authorizing Uriel Castro to provide real estate brokerage
services in connection with the marketing and/or sale of portions of Lots 4
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and 5 of the Kimbro Road Estates subdivision until such time as the Travis
County Commissioners Court has approved the re-platting and subdivision
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of the Property.
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8.2 Travis County, Texas also asks for such other relief, at law or in equity, to which
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the County is justly entitled.
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Respectfully submitted,
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DAVID ESCAMILLA
TRAVIS COUNTY ATTORNEY
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By: /s/ Tim Labadie
Tim Labadie
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Ryan Fite
Assistant Travis County Attorney
State Bar No. 24045873
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ryan.fite@traviscountytx.gov
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(512) 854-9415
(512) 854-9316 (fax)
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CERTIFICATE OF SERVICE
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I certify that, in accordance with Rules 21 and 21a of the Texas Rules of Civil
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Procedure, on March 22, 2019, Plaintiff’s Second Amended Petition was emailed to
Brian Trenz, attorney of record for Mustang Kimbro Estates, LLC, and Uriel Castro at
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brian@helpingtexas.com.
/s/Tim Labadie
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EXHIBIT 7
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EXHIBIT 8
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EXHIBIT 9
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EXHIBIT 10
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EXHIBIT 11
Ve
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EXHIBIT 12
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EXHIBIT 13
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EXHIBIT 14
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EXHIBIT 15
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EXHIBIT 16
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EXHIBIT 17
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EXHIBIT 18
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EXHIBIT 19
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EXHIBIT 20
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EXHIBIT 21
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EXHIBIT 22
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EXHIBIT 23
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EXHIBIT 24
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EXHIBIT 25
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EXHIBIT 26
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