In a case where jurors considered dueling claims for breach of contract between the owner of an Oak Cliff apartment complex and the contractor that built it, they determined both sides breached, but that Zang Holdings breached first.
On Monday night, a Dallas jury that had deliberated for nearly two days found that Integrity Commercial Group breached the contract it entered into with Zang Holdings to construct Zang Flats, and that the contractor had “intentionally, knowingly, or with intent to defraud” misapplied certain funds, too. In the 10-2 mixed-bag verdict, jurors awarded Integrity $1.4 million in damages for Zang’s breach, and awarded Zang about $353,000 in damages for Integrity’s misapplication of trust funds.
The monthlong trial before Dallas County Judge Kim Phipps that began Nov. 9 included a 12-day break during the Thanksgiving holiday. Integrity, which argued it was wrongly terminated from completing the project, was seeking about $2.4 million in damages.
According to court documents, Integrity was hired in 2020 by Zang Holdings to build the 72-unit apartment complex, Zang Flats, not far from the Oswald Rooming House Museums. Due to the pandemic, they experienced supply chain issues, which was one factor that delayed the project.
Zang Holdings terminated Integrity in October 2023, when construction was nearly completed. The apartment complex opened for leasing at 1100 N. Zang Blvd. in February 2024.
Integrity argued that it was improperly terminated under its contract with Zang Holdings, while Zang Holdings argued at trial that Integrity was the cause of the delays. Integrity argued that Zang Holdings failed to timely approve orders for materials and labor, which resulted in the delays.
The outcome of the trial had both sides claiming victory.
Duane Morris partner Christopher Brown, who represents Integrity, said while both parties “had experts testify about the delays and the causes of those delays,” the jury’s verdict confirms “that the causes of the delays were caused by the owner Zang and not by us.”
Bell Nunnally & Martin partners Perrin Fourmy and Jonathan Aldaco issued a joint statement on behalf of Zang Holdings that an appeal will follow.
“It’s clear that the jury recognized wrongdoing of the contractor in this result — failing to award any recovery for their $3.1 million in lien claims and finding them liable for over $350,000 for breaching the Texas Construction Trust Fund Act,” it reads. “We remain confident that damages against our client will be set aside on appeal.”
Integrity Commercial Group is also represented by Joseph Cox, Ramsey Schultz, Benton Wheatley, Cheryl Walters and Brad Smith of Duane Morris.
Zang Holdings is also represented by Kenneth Meixelsperger and Meredith Palmer of Bell Nunnally & Martin. The case is Integrity Commercial Group v. Zang Holdings, DC-23-12598.