Downfall of a Real Estate Empire

The Court of Appeals has mostly affirmed the district court’s judgment in favor of the plaintiffs in a case arising out of “the downfall of a real estate empire built by W. Eric Brauss through a complex web of real estate limited partnerships involving hundreds of investors and creditors.” Because our firm represents some of those creditors, we will keep the commentary brief. Among other issues, the court discusses the inferences that can be drawn in a civil case from a party’s invocation of the Fifth Amendment right against self-incrimination. In the end, the appellate court reversed the trial court’s decision to render damages jointly and severally against one of the individual defendants, but affirmed the findings of fraud and the overall award of damages.

Brauss v. Triple M. Holding GMBH, No. 05-11000271-CV