One of the details he had been asked for was a résumé of his professional history in the home-building business.
One reason no court date has been set is that David Alan Zovath filed for bankruptcy on January 3 of this year. It would be his second Chapter 13 filing in the last five years. The bankruptcy, if approved, would take precedence over other suits, at least delaying any judgments. On January 27, five and six days, respectively, before Zovath and Marks were scheduled for depositions, Young lawyer Linkin received a cancellation from Zovath's lawyers, citing the pending bankruptcy for the couple's unavailability. It was, Linkin says, at least the fourth time that Zovath had cancelled deposition appointments.
Deron Neblett
Inspector Bill Rice, consumer watchdog
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Linkin hopes to get the bankruptcy thrown out on charges that Zovath's bankruptcy petition contained false statements. A Schedule B form for listing personal property indicates that Zovath, at the time of filing, had $5 cash on hand, no household goods or furnishings, no apparel, no automobiles, no office equipment, furnishings or supplies, and no "other personal property of any kind not already listed." When the form instructs Zovath to "list all suits and administrative proceedings to which the debtor is or was a party within one year immediately preceding the filing of this bankruptcy case," he checks the box for "none." A casual glance at the civil docket dated July 23, 1999, reveals at least 17 suits with Zovath as defendant.
Add Andrew and Lucy Young to that list, if their lawyer can drag Zovath out of bankruptcy. The Youngs tried to sue their mortgage company, Old Kent, as well, on the grounds that their contract required the lender to do at least a credit check before approving the project's builder. Old Kent, they feel, clearly didn't do much credit checking, but a judge dismissed Old Kent from the suit, finding that the lender has no duty in the matter.
The Youngs' wish to hire a new builder to finish their dream home is bogged down in the lawsuits and liens, and Andrew and Lucy just wait. The man who bought Andrew's grandfather's patio home finally had to take possession, and the Youngs moved into the first of several apartments. In the meantime, interest rates have gone up, and the mortgage they arranged back in 1998, they fear, will not buy as much house now as it would have then. Plainer faucets, the mid-range tile. There may finally be no Jacuzzi in the trees.
Ray Crain, as an employee of Credit Management Consulting Services, acting as the agent for Wenco Lumber in that company's suit against Zovath, sounds like a man who has seen it all before. These are not his first unpleasant dealings with Zovath. Back in 1995 he filed a $2,787 lien on Detering Lumber's behalf, but Detering ended up losing that money in Zovath's 1995 bankruptcy. He's also got a lawsuit against Zovath on behalf of Curio Drywall, unrelated to the Young home.
Zovath, Crain says, owes Wenco money. But on the other hand, "the Youngs have inherited a slab they didn't pay for."
Crain hasn't seen the slab in question, but surface cracks are common, he says, and "concrete gets hard, it gets hard, so I don't know exactly what their beef was on the slab."
The conflict is, Crain admits, a big mess. And then it gets bigger.
In a late interview, Crain reveals that not only is he suing Zovath, not only has he placed a lien on the Youngs' property, but he is suing Andrew and Lucy Young on a foreclosure lien as well.
"They had signed a note with us to settle the lien out, and then they reneged on the note. We settled with them for a very reasonable amount, and they paid a down payment, and they never paid up, though, so now they're dragged into a full-blown foreclosure suit."
In theory, says Crain, if he is awarded a foreclosure lien, the Youngs' property could be posted for sale, and whoever buys it -- maybe one of those people who spent $350 at a weekend seminar on how to get rich buying distressed properties -- will have to deal with the lien holders on their own. The Youngs, of course, could buy the property themselves. Again.
Crain deals with this crap every day. He suspects David Alan Zovath likely is not the worst builder around, and he can hardly get emotionally involved in the Youngs' saga. He's in the business of getting money from people who owe it.
"We've sued everybody," he says, "and let God work it out. And if we get a judgment against the Youngs, we're not relegated to just the lien. We can get after the Youngs' other assets. I don't think they understand that."
Andrew and Lucy Young, so told, did not understand that. Neither did they know they were being sued by Crain. They say they had received no billing or payment notifications from Crain and so had yet to send a payment after the initial one. Their lawyer immediately contacted Crain to try to work out payment arrangements, and douse this latest brushfire before it turned the dream home, wooded lot and all, to cinder.
E-mail Brad Tyer at brad.tyer@houstonpress.com.
