In a case that centered on the disputed transfer of 45 acres of property near Seabrook, Texas, a jury in Houston recently awarded a group of plaintiffs $5.9 million in damages.
The verdict, returned April 11, comes after more than four years of litigation in the case that pitted the late Craig Lazzari’s daughters, shareholders in Trust Me Inc., against his estate and his second wife, Donna Lazzari, who is the administrator of his estate. Jurors sat through a four-day trial in Harris County District Judge Michael Gomez’ court before siding with the plaintiffs.
The jury was tasked with answering eight questions, and determined that neither Craig Lazzari nor Donna Lazzari complied with their fiduciary duties to Trust Me Inc. and that both had “knowingly” participated in breaching those fiduciary duties.
For those breaches, jurors decided Trust Me was entitled to $5.7 million in damages, which the jury determined was the fair market value of the Seabrook property. The jury also determined Donna Lazzari committed fraud against her stepdaughter, Lisa Dickson, and that Dickson was entitled to $234,725.01 in damages for that fraud.
According to court documents, Trust Me was incorporated in September 1990 and Craig Lazzari conveyed the Seabrook property, about 45.9 acres, to Trust Me through a warranty deed in December 1990 in exchange for 100 percent of the shares of Trust Me. Craig Lazzari then divided the shares, giving 33 percent each to his three daughters, Lisa Marie, Cindi and Toni Lee. The one share owned by Craig Lazzari was the sole voting share.
Both Cindi and Toni died prior to the commencement of this litigation, which Cindi’s estate brought. Dickson intervened in the October 2020 lawsuit in November 2022.
Dickson alleged that “unbeknownst to the majority of TMI’s shareholders, TMI was divested of its largest asset during Mr. Lazzari’s final years.”
“As the result of a self-dealing transaction, the true nature of which was concealed from TMI’s shareholders, Donna Lazzari (Mr. Lazzari’s then-wife) purports to own the majority of TMI’s assets,” the petition in intervention reads. “Donna Lazzari’s purported ownership arises from a transaction in which her wholly owned LLC received the Seabrook property for purported consideration that was as low as 92% below market value.”
The plaintiffs are represented by Jonathan D. Baughman and William K. Grubb of McGinnis Lochridge, Nicholas M. Bruno of Beck Redden and T. Mark Rogstad of Wright & Greenhill.
The defendants are represented by Leslie Wm. Adams, Cameron S. Bodell and William M. Irvine of Leslie Wm. Adams & Associates.
The case number is 2020-64104.