In April 2008, The First Pentecostal Church of Beaumont settled an insurance claim for property damage from

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In April 2008, The First Pentecostal Church of Beaumont settled an insurance claim for property damage from Hurricane Rita. The church received $1,094,611.02. During this time, the church was embroiled in a sexual harassment lawsuit. Concerned that the settlement money could be targeted in the lawsuit, Lonnie Treadway, the pastor of the church, decided to let its defending law firm, Lamb Law Firm, P.C. hold the settlement money. The money was deposited into an account in Lamb’s name. However, over the course of a year, the funds were transferred by Kip Lamb, the owner of Lamb Law, to a separate account held by Lamb Law. The funds totaling $1.2 million were spent for Kip Lamb’s personal expenses and Lamb Law’s operating expenses. In 2011, Leigh Parker, an attorney contracted by Lamb Law to work on the church’s case, informed the church’s board of trustees. Parker had known that Lamb had spent the funds since the summer of 2010 but had not informed the church until the church had requested the transfer of the settlement funds. In 2012, the church sued Lamb and Parker. Lamb also faced criminal charges and was eventually sentenced to fifteen years in prison. In its case against Parker, the church asserted that Parker was jointly and severally liable to it because he was part of a joint venture with Lamb, among other things. Specifically, the church argued that Parker and Lamb were part of a joint venture to misappropriate the church’s money and then hide the fact. What are the four elements of a joint venture as listed by the Texas Supreme Court in this case? The court ruled against the church for this argument. What was its reasoning?

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Dynamic Business Law The Essentials

ISBN: 9781260253382

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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