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Developer Sues Southwind Gardens Over Broken Land Deal in Texas Contract Dispute

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Developer Sues Southwind Gardens Over Broken Land Deal in Texas Contract Dispute

A
Angad Chatha
June 10, 2025
Developer Sues Southwind Gardens Over Broken Land Deal in Texas Contract Dispute
Developer Sues Southwind Gardens Over Broken Land Deal in Texas Contract Dispute

Background of the Dispute

LIDHAR Development LLC filed a civil lawsuit against Southwind Gardens LLC in the 192nd Judicial District Court of Hidalgo County, Texas. The case involved an alleged breach of a real estate contract executed on May 1, 2024, for property located in Hidalgo County. The Plaintiff claimed that the Defendant failed to comply with the contract terms and sought injunctive relief to prevent further harm while the case moved forward. LIDHAR submitted the original petition electronically on November 12, 2024.

Allegations and Basis of the Claim

In its Complaint, LIDHAR alleged that Southwind Gardens LLC had represented itself as the rightful owner of the property and had promised to provide the necessary easements. Based on those assurances, LIDHAR initiated development plans and invested in engineering services. On October 25, 2024, the Defendant’s broker informed LIDHAR that Southwind Gardens would not sign the easement agreement and instead intended to sell the property to another buyer. LIDHAR argued that this conduct amounted to an anticipatory breach of contract and a clear repudiation of the agreement.

Harm Suffered by the Plaintiff

LIDHAR claimed that the Defendant’s actions directly harmed its development project. The Plaintiff stated that it had already expended significant time and resources in reliance on the agreement. The lack of signed easements delayed construction efforts and placed the project at risk. LIDHAR further asserted that it faced potential consequential losses and that monetary compensation alone would not provide an adequate remedy. Accordingly, it sought specific performance to protect its investment.

Relief Sought by the Plaintiff

LIDHAR requested several forms of relief from the court. It sought specific performance of the real estate contract, temporary and permanent injunctive relief, attorney’s fees, court costs, and any other equitable relief the court deemed appropriate.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff: LIDHAR Development LLC

  • Counsel for Plaintiff: Ranjit Singh Lidhar

  • Defendant: Southwind Gardens LLC

  • Counsel for Defendant: Michael A. McGurk

Claims

Breach of Contract

LIDHAR Development LLC entered into a valid and enforceable Purchase and Sale Agreement with Southwind Gardens LLC on May 1, 2024. Under the terms of the agreement, the Defendant agreed to provide the easements necessary for the Plaintiff’s property development. LIDHAR fulfilled its contractual obligations, but Southwind Gardens allegedly breached the agreement by refusing to execute the easement and by pursuing a different offer. As a result, LIDHAR sought specific performance to enforce the agreement and prevent further financial loss.

Promissory Estoppel

In the alternative, LIDHAR asserted a claim for promissory estoppel. The Plaintiff alleged that it relied on Southwind Gardens’ promise to provide the required easements. Based on those assurances, LIDHAR undertook development efforts, including engineering work and easement planning. When Southwind Gardens failed to honor its promise, LIDHAR claimed it suffered injury and sought equitable relief from the court.

Injunctive Relief

LIDHAR requested injunctive relief to prevent further breach of the agreement and to preserve its development rights. The Plaintiff asked the court to issue a temporary restraining order, a preliminary injunction, and ultimately a permanent injunction after trial. These measures aimed to stop Southwind Gardens from disposing of the property or taking further action inconsistent with the agreement.

Legal Costs

LIDHAR also sought recovery of attorney’s fees, court costs, and any other equitable relief the court found appropriate under Texas law.

Defense

Southwind Gardens LLC filed a general denial in response to all allegations raised by LIDHAR Development LLC. The Defendant rejected each claim stated in the Plaintiff’s Original Petition and required LIDHAR to meet its burden of proof as mandated by Texas law.

Southwind Gardens further asked the court to dismiss the Plaintiff’s claims in their entirety. The Defendant requested that the court enter judgment in its favor and order that LIDHAR take nothing from the lawsuit. Additionally, Southwind Gardens sought recovery of its legal costs and any other relief the court deemed fair and just, whether under law or equity.

Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com

Tags

Breach of contract