Northlake Development L.L.C. v. Bankplus

DICKINSON, Presiding Justice,

for the Court:

¶ 1. Michael Earwood, the minority member of Kinwood Capital Group, LLC,1 secretly formed Northlake Development, LLC, with himself as sole owner. Ear-wood then signed a deed purporting to transfer a parcel of Kinwood’s property to Northlake, which then granted a deed of trust on the property to secure a bank loan. Northlake later defaulted on the loan and filed bankruptcy, listing the property as an asset. Upon learning what Earwood had done, Kinwood’s majority member, George Kiniyalocts, filed an objection in Northlake’s bankruptcy proceeding,…