marshall court filings i

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 - 1 - UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION THE GIL RAMIREZ GROUP, L.L.C.; AND GIL RAMIREZ, JR. Plaintiffs , vs. HOUSTON INDEPENDENT SCHOOL DISTRICT; LAWRENCE MARSHALL; EVA JACKSON; AND RHJ-JOC, INC.  Defendants . § § § § § § § § § § § § § Case No. 4:10-CV-04872 JURY REQUESTED PLAINTIFFS, THE GIL RAMIREZ GROUP, L.L.C. AND GIL RAMIREZ, JR., MOTION FOR LEAVE TO FILE SECOND AMENDED COMPLAINT TO THE HONORABLE UNITED STATES DISTRICT JUDGE: NOW COME Plaintiffs, THE GIL RAMIREZ GROUP, L.L.C. and GIL RAMIREZ, JR., (hereinafter referred to as “Plaintiffs”), and file this Motion for Leave to File their Second Amended Complaint, in support thereof would respectfully show the following: 1. Plaintiffs have issued subpoenas to third parties concerning issues of fact relevant to the determination of this case. 2. Plaintiffs have also received responses to discovery from the existing parties. Case 4:10-cv-04872 Document 52 Filed in TXSD on 10/11/11 Page 1 of 5

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UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF TEXAS

HOUSTON DIVISION

THE GIL RAMIREZ GROUP, L.L.C.;AND GIL RAMIREZ, JR.

Plaintiffs ,

vs.

HOUSTON INDEPENDENT SCHOOLDISTRICT; LAWRENCEMARSHALL; EVA JACKSON; ANDRHJ-JOC, INC.

Defendants .

§§§§§§§§§§§

§§

Case No. 4:10-CV-04872JURY REQUESTED

PLAINTIFFS, THE GIL RAMIREZ GROUP, L.L.C.AND GIL RAMIREZ, JR.,

MOTION FOR LEAVE TOFILE SECOND AMENDED COMPLAINT

TO THE HONORABLE UNITED STATES DISTRICT JUDGE:

NOW COME Plaintiffs, THE GIL RAMIREZ GROUP, L.L.C. and GILRAMIREZ, JR., (hereinafter referred to as “Plaintiffs”), and file this Motion for Leave to

File their Second Amended Complaint, in support thereof would respectfully show the

following:

1. Plaintiffs have issued subpoenas to third parties concerning issues of fact

relevant to the determination of this case.

2. Plaintiffs have also received responses to discovery from the existing

parties.

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3. As a result of this discovery, Plaintiffs require adding parties to this case.

4. In the discovery, Plaintiffs have learned that Defendant RHJ has been

making payments of $2,500 a month to Defendant and HISD Board

Member Lawrence Marshall's campaign treasurer Joyce Moss Clay.

5. RHJ responded to discovery requests that there are no records of Clay's

work product received in exchange for the $2500 a month.

6. Clay utilizes and entity called JM Clay and Associates to receive these

payments. Plaintiffs have been unable to locate any formation registration

for this entity.

7. Plaintiffs have also learned in discovery that Lawrence Marshall operates

an entity called Marshall & Associates for "consulting services" to which

payments were received that are relevant to this case

8. Plaintiffs subpoenaed records from Fort Bend Mechanical, LTD ("FBM").

FBM permitted Plaintiffs to inspect their documents. Plaintiffs designated

some of the documents for copying and now FBM refuses to produce the

copies. In the documents reviewed by Plaintiffs' counsel was a copy of a

check for $25,000 made payable to the Larry Marshall from an account

owned by David Medford, FBM's principal. No record of this payment

appears on the Marshall Campaign Finance Disclosure forms.

9. Also discovered in the FBM documents are invoices and checks

demonstrating that FBM has been making $3,000 a month payments to

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Joyce Moss Clay. Again, no documents were discovered in the records

justifying work product commiserate with such payments.

10. Also in the FBM records were invoices demonstrating an expensive stand-

by generator was installed at Clay's residence by FBM.

11. The generator was installed at or about the time FBM was selected as a

contractor to replace Plaintiffs in HISD's JOC program.

12. Other records, yet to be copied by FBM but reviewed by Plaintiffs' counsel,

reveal other payments or emoluments made by FBM for the purpose of

influencing HISD and Defendant Marshall.

13. As a result of these events and others, Plaintiffs require amendment of their

Complaint to add additional necessary parties.

14. Additional facts to support the amendment are contained in the attached

proposed Second Amended Complaint.

For these reasons, Plaintiffs respectfully requests that the Court grant them leave

to file their Second Amended Complaint which is attached hereto as Exhibit “A”.

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Dated this 11 th day of October, 2011.

Respectfully submitted,

BRAZIL & DUNN

/s/ Chad W. DunnChad W. Dunn – Attorney in ChargeTBN 24036507; Fed. I.D. No. 33467K. Scott BrazilTBN 02934050; Fed. I.D. No. 25854201 FM 1960 West, Suite 530Houston, Texas 77068Telephone: (281) 580, 6310

Facsimile: (281) 580-6362E-Mail: [email protected] E-Mail: [email protected]

T HE G REENWOOD P RATHER L AW F IRM Kelly Greenwood PratherTBN 00796670; Fed. I.D. No. 218291300 McGowen StreetHouston, Texas 77004Telephone: (713) 333-3200

Facsimile: (713) 621-1449E-Mail: [email protected]

ATTORNEYS FOR PLAINTIFFS

CERTIFICATE OF CONFERENCE

I certify that co-counsel Kelly Greenwood Prather sent an email to defense counselconcerning this Motion earlier today. After several hours, no final decision had beenmade by Defendants as to whether they opposed this Motion for Leave.

By: /s/ Chad W. Dunn

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CERTIFICATE OF SERVICE

I hereby certify that on October 11, 2011, I electronically filed the foregoingdocument with the Clerk of the United States District Court, Southern District of Texas,Houston Division, using the electronic case filing system of the Court. The electroniccase filing system sent a “Notice of Electronic Filing” to the following attorneys of record who have consented in writing to accept this Notice as service of this document byelectronic means:

John M. HopkinsArturo G. MichelThompson & Horton, LLP3200 Southwest Freeway, Ste. 2000Houston, TX 77027

(Attorneys for Defendants Houston Independent School District and Lawrence Marshall)

Michael J. StanleyStanley, Frank & Rose, LLP7026 Old Katy Road, Suite 259Houston, TX 77024( Attorneys for Defendants RHJ-JOC, Inc.and Eva Jackson )

/s/ Chad W. Dunn

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 2

(hereinafter referred to as “ Medford ”); FBM MANAGEMENT, LLC (hereinafter

referred to as “ FBM”); JOYCE MOSS CLAY (hereinafter referred to as “ Clay”) and JM

CLAY and ASSOCIATES (hereinafter referred to as “ Clay”) (hereinafter collectively

referred to as “ Defendants ”), and in support thereof would show the Court as follows:

I.

PARTIES

1. Plaintiff, GIL RAMIREZ GROUP, L.L.C. is a domestic limited liability company

and is a citizen of the State of Texas.

2. Plaintiff, Gil RAMIREZ, Jr. is an individual who is a citizen of the United States

and the State of Texas.

3. Defendant, HOUSTON INDEPENDENT SCHOOL DISTRICT is a governmental

unit of the State of Texas and it may be served through its President, Greg Meyers

at 4400 West 18th Street, Houston, Texas 77092.4. Defendant, LAWRENCE MARSHALL is a Citizen of Texas and was the 2009

President of the HISD Board of Trustees, is a current member of the HISD Board

of Trustees and he may be served at 4400 West 18th Street, Houston, Texas

77092. He is sued in his individual and personal capacities as more further

described below.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 3

5. Defendant, MARSHALL & ASSOCIATES is an unknown business entity that

serves as the alter-ego for Defendant LAWRENCE MARSHALL and may be

served at 4400 West 18th Street, Houston, Texas 77092.

6. Defendant, EVA JACKSON, is a citizen of Texas and may be served at 7643

South Freeway, Houston, Texas 77021.

7. Defendant RHJ-JOC, INC. is a domestic-for-profit corporation and it can be

served through its registered agent, EVA JACKSON, at 7643 South Freeway,

Houston, Texas 77021.

8. Defendant FORT BEND MECHANICAL, LTD. is a domestic limited partnership

and it can be served through its registered agent, David L. Medford at 13623

Stafford Road, Stafford, Texas 77477.

9. Defendant FBM MANAGEMENT, LLC. is a domestic limited liability company

that serves as the general partner for FORT BEND MECHANICAL, LTD and itcan be served through its registered agent David L. Medford at 13623 Stafford

Road, Stafford, Texas 77477.

10. DAVID L. MEDFORD is an individual who upon information and belief resides

in Fort Bend County, Texas and may be served at 13623 Stafford Road, Stafford,

Texas 77477.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 4

11. JOYCE MOSS CLAY is an individual who upon information and belief resides in

Harris County, Texas and may be served at 3618 Elmcrest Drive, Houston, Texas

77088.

12. JM Clay and ASSOCIATES is an unknown business entity that serves as the alter-

ego for Defendant JOYCE MOSS CLAY and may be served through her at 3618

Elmcrest Drive, Houston, Texas 77088.

II.

JURISDICTION AND VENUE

13. The Court has jurisdiction over this matter under U.S. CONST . art 3, §2, 28 U.S.C.

§ 1331, 42 U.S.C. § 1983; U.S. CONST ., Amend. XIV, § 1; 18 U.S.C. § 1964; and

other statutes and laws.

14. Venue is proper in this district in that a substantial part of the events or omissions

giving rise to these claims occurred in this district. Furthermore, the contractunderlying the claims in this case requires this Court as venue.

III.

FACTUAL ALLEGATIONS

15. Plaintiff, The Gil Ramirez Group, L.L.C., is a commercial construction and repair

business founded and principally owned by Gil Ramirez, Jr.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 5

16. Several years ago, the Houston Independent School District conducted an $800

million bond issue to construct new schools and repair and update outdated

schools.

17. In order to fairly administer this money for school repairs, the school district

adopted a preferred bidder system.

18. The school district is divided into the northern and southern region.

19. Contractors were invited to bid.

20. Each bidder was required to submit lengthy documents.

21. Plaintiffs spent tens of thousands of dollars to participate in the bid process.

22. Three contractors are selected for the northern region and three contractors are

selected for the southern region.

23. Defendant FBM, run by Defendant Medford, was one of the contractors approved

by HISD.24. Defendant FBM is a business that competes directly with the Plaintiffs and others

for government repair and construction work.

25. Plaintiffs were one of the contractors approved by HISD.

26. As part of the process, a “bid book” is prepared. This bid book describes what

each contractor can charge for individual elements of a project. For example,

changing a light bulb has a certain dollar value. Obtaining a ladder, if necessary to

install the light bulb, requires a certain amount of money. Weekend work requires

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 6

a certain amount of money. If there was something out of the ordinary not

included in the bid book, Plaintiffs were required to submit 3 proposals as a “non

pre-priced item."

27. Once the contract was signed and in place, attached as Exhibit A, the Plaintiffs

began to bid on projects.

28. For example, when a roof would collapse from heavy rains, or an air conditioner

would fail, HISD would send out a notice to the three approved contractors of the

project in that region. Those contractors would schedule a site visit to prepare a

scope of work and coordinate with subcontractors to review scope in the field for

bids. The Contractors would then prepare proposals using the pre-priced RS

Means process.

29. The vast majority of the bids were won by the Plaintiffs because they were

recommended by a third party CMPA to be the best value to the district at themost competitive price.

30. Plaintiffs routinely received praise for the quality and timeliness of their work.

31. The often acceptance by HISD of Plaintiffs' bids in this program was to the

detriment of FBM and Medford.

32. After the attached contract was signed and in force, a longtime member of the

HISD Board of Trustees, Defendant Marshall became President.

33. Defendant Marshall’s political donor is Defendant Eva Jackson.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 7

34. Defendant Marshall’s political donor is also Medford.

35. Medford made payments to Marshall totaling at least $27, 500.00 that were

labeled as campaign contributions. See attached Exhibit "B."

36. The payments from Medford to Marshall were not included on Marshall's

campaign finance reports.

37. Upon information and belief Defendant Marshall’s political donor is also FBM.

38. Eva Jackson is the owner of Defendant RHJ-JOC, Inc.

39. Defendant RHJ-JOC, Inc. is a business that competes directly with the Plaintiffs

and others for government repair and construction work.

40. Eva Jackson and others are presently being investigated by criminal authorities for

corrupt dealings with public leaders in an effort to obtain government contracts.

41. When Defendant Marshall took over as President of HISD Board of Trustees, he

approached Dr. Abe Saavedra, then current Superintendent for HoustonIndependent School District, about arranging for Defendant Jackson and her

company to receive the same bid work awarded Plaintiffs.

42. Under HISD custom, if the President and the Superintendent agree on the use of a

contractor, that contractor can be selected without a Board vote so long as the

services are deemed “professional services.”

43. Defendant Marshall explains to Dr. Saavedra that he expected Defendant Jackson

to become a contractor for HISD.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 8

44. Defendant Marshall intends for Defendant RHJ, Jackson, FBM and MEDORD to

receive most, if not all, of the HISD work.

45. Dr. Saavedra refused to agree with Defendant Marshall on this issue.

46. Defendant Marshall then tells Dr. Saavedra he has lost confidence in Dr.

Saavedra’s running of the school district.

47. Defendant Marshall states that he would move forward to obtain an agreement

from the school board forcing out Dr. Saavedra.

48. The principal, if not the exclusive, reason Dr. Saavedra is pushed out is so that

Defendant Marshall can award contracts as he desires and more specifically to

Defendants.

49. Once Dr. Saavedra is out, Defendant Marshall immediately makes certain all the

contracts for the approved contractors are cancelled, including Plaintiffs.

50.

No cause is stated for cancellation of Plaintiffs' contract.51. Defendant Marshall orders HISD staff to perform a new bid process.

52. HISD's Chief of Bidding opposes the re-bidding process and is adamant the

original process was fair.

53. The Chief of the Bidding is ultimately fired by HISD.

54. Once the new bidding process starts, all six of the contractors who had previously

been qualified and had been doing the work are deemed to be ineligible under the

new bid terms.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 9

55. Initially only Defendant Jackson's company is approved as eligible.

56. Ultimately, at least two other contractors are approved as eligible.

57. FBM is again approved as eligible.

58. Upon information and belief, RHJ and FBM now receive the greatest share of the

work.

59. Defendant Marshall's close personal friend and campaign treasurer is Defendant

Joyce Moss Clay.

60. Clay runs an alter ego entity called Defendant JM Clay and Associates.

61. Clay receives or has received $2,500 per month from Defendant RHJ for

"consulting services."

62. Clay receives or has received $3,000 per month from Defendant FBM for

"consulting services."

63.

There are no records to evidence Clay actually creating or performing any work product.

64. Clay also received from FBM the installation of an expensive stand-by generator.

65. After an extensive review of FBM's records, no invoice was discovered to Clay for

the generator.

66. Clay was paid by RHJ and FBM for her relationship to Marshall.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 10

67. Clay then transfers by cash, check and/or other emolument(s) the payments she

receives to Marshall, Marshall's benefit and/or his alter ego Marshall &

Associates.

68. FBM records reveal it made payments to LM Consulting Group, LLC whose

principal is a partner at the law firm defending Eva Jackson and RHJ.

69. Moreover, for at least 10 years now HISD has been siphoning purpose specific

bond money to use for operating costs.

70. For example, when Plaintiffs would bill a particular job, they were expected upon

payment to return two percent of that fund back to HISD.

71. This two percent is called a marketing fee. For example, if Plaintiffs were paid

$100 to do a repair at a particular elementary school, they were expected to send a

check back to HISD for $2.

72.

Upon information and belief, the two percent is then put into HISD’s general fundand is used for operating expenses.

73. HISD siphons at least two bond issues in this manner.

74. FBM records indicate it has paid the 2% fee back to HISD.

75. Also, a bond issued in 1993 by HISD has remained, in large measure, unspent and

is being siphoned to pay operating expenses.

76. The laws require a bond election. The bond election must state specifically the

use of the funds. Law requires the bonds be actually spent on these funds.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 11

77. Defendants have conspired together in the unlawful and inequitable awarding of

contracts to Defendants RHJ, Jackson, FBM and Medford.

78. Defendant HISD has administered bond funds in a manner in violation of the law

and at the detriment of Plaintiffs.

79. The suspicious HISD bid process has even been questioned by the new, current

Superintendent, Terry Grier.

80. Superintendent Grier stated publicly, at a recorded meeting, "I have seen a

procurement department made up of independent folks rate bids from a variety of

different companies across the district to do a lot of different work, and then I've

seen staff -- just for whatever reason -- pull names off of a list and put other names

back on a list, (with) no rhyme or reason except, quite frankly, influence where

influence has no business coming from."

81.

All of the foregoing, including other acts, occurred in order that the Defendantscould benefit economically.

IV.

CAUSES OF ACTION

COUNT 1:

42 U.S.C. § 1983 – 14 th Amendment

82. Plaintiffs hereby incorporate the foregoing by reference.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 12

83. Defendants HISD and Marshall, in his official capacity, acting under color of state

law, deprived Plaintiffs of their rights, privileges and immunities secured by the

Constitution and laws of the United States, in violation of 42 U.S.C. § 1983, by

committing acts in violation of the Fourteenth Amendment protections against

deprivation of certain procedural and substantive rights, i.e, life, liberty and

property, without constitutionally adequate procedures.

84. Defendants arbitrarily and capriciously terminated Plaintiffs’ rights under the

attached contract without good cause and without providing Plaintiffs due process

of law.

85. Defendants also failed to give Plaintiffs equal protection under the law.

86. At all times relevant to this Complaint, Defendant Marshall was acting under his

authority as President and/or member of the HISD Board of Trustees.

87.

Defendant HISD and Marshall's actions were pursuant to an official policy,practice or custom of HISD as adopted by Marshall as its chief executive. Such

proximately led to the events in question and Plaintiffs’ injuries and damages.

88. Alternatively or in addition, Defendant Marshall's actions were not within the

scope of his authority, he was not performing discretionary duties and/or he did

not act in good faith and therefore is not entitled to immunity.

89. As a result of Defendants’ conduct , Plaintiffs suffered damages.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 13

90. Furthermore, Plaintiffs are entitled to an injunction prohibiting Defendant from

awarding any more work or funds without either honoring Plaintiffs contract or re-

submitting the work for bid in a fair process unencumbered by preferential

treatment.

V.

CAUSES OF ACTION

Count 2:

Violation of the Racketeer Influenced Corrupt Organizations Act

91. Plaintiffs hereby incorporate the foregoing by reference.

92. Defendants engaged in racketeering behavior.

93. From not later than 2008 to the present, Defendants Marshall (for himself and for

HISD as its chief policy maker), Jackson, RHJ, FBM, Medford and Clay, and

their agents and co-conspirators formed a RICO "enterprise" within the meaningof 18 U.S.C. § 1961(4) that engaged in or affected foreign and/or interstate

commerce.

94. Alternatively, Defendants and their agents and co-conspirators constituted an

association in fact for a common purpose with a continuous existence separate and

apart from the pattern of racketeering activity in which they engaged. This

association in fact constituted an enterprise within the meaning of 18 U.S.C. §

1961(4).

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 14

95. The Defendants' enterprise exists separate from the unlawful acts committed.

96. Each Defendant is an "individual or entity capable of holding a legal or beneficial

interest in property" and, as such, each constitutes a "person" within the meaning

of 18 U.S.C. §1961 (3).

97. The Defendants are engaged in interstate acts of commerce and the acts alleged

herein have a potential effect on commerce.

98. Over a period of years and continuing to the present, Defendants with their co-

conspirators or agents, in violation of 18 U.S.C § 1962(b) through a pattern of

racketeering activity, have acquired and maintained an interest in resources to their

own benefit.

99. Over a period of years and continuing to the present, Defendants with their co-

conspirators or agents, in violation of 18 U.S.C § 1962(c) through a pattern of

racketeering activity, gained profit or income for their benefit.100. At all times relevant to this Complaint, the Defendants, and their agents and co-

conspirators conducted, or participated directly or indirectly in the conduct of the

affairs of the enterprise through a pattern of racketeering activity, within the

meaning of 18 U.S.C. § 1961 (1)(5), in violation of 18 U.S.C. § 1962 (c).

101. At all times relevant to this Complaint, the Defendants, in violation of 18 U.S.C.

§ 1962(d), combined and conspired together and with their agents and co-

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 15

conspirators to conduct the affairs of the enterprise through a pattern of

racketeering activity.

102. In furtherance of the conspiracy, and to effect the objects thereof, the Defendants

committed overt acts.

103. These acts include activity described in 18 U.S.C. § 1961(1) including:

a. bribery (18 U.S.C. § 201);

b. wire fraud (18 U.S.C. § 1343); and

c. money laundering (18 U.S.C. § 1956).

104. The bribery included payments and other emoluments to Defendant Marshall in

exchange for preferential treatment to the other Defendants.

105. The wire fraud included acceptance and transmission of payments to secure the

support of Defendant Marshall.

106.

The wire fraud included acceptance and transmission of payments from HISD thatbut for the bribery would not have been made.

107. The money laundering occurred with the payment of 2% or more of all bid

projects back to HISD as a "fee."

108. The racketeering activity has occurred over time and threatens to continue

occurring.

109. Defendants' acts alleged herein have substantial effect within the United States.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 16

110. As a direct and proximate result of the Defendants' violations of 18 U.S.C.

§§ 1962 (b),(c) and (d) Plaintiffs have suffered injury to business, property,

reputation and livelihood.

111. The injuries suffered by each Plaintiff were reasonably foreseeable or anticipated

by the Defendants as the natural consequence of Defendants' acts.

112. Plaintiffs seek treble damages. 18 U.S.C. § 1964(c).

VI.

CAUSES OF ACTION

Count 3:

Breach of Contract/Breach of Duty of Good Faith

113. Plaintiffs hereby incorporate the foregoing by reference.

114. Plaintiff The Gil Ramirez Group, L.L.C. had a valid, enforceable contract with

Defendant HISD which is attached hereto as Exhibit "A."115. Defendant HISD breached this contract in numerous respects.

116. Defendant HISD's breach of contract included failing to make payments for work

performed as required under the terms of the contract.

117. Defendant HISD's breach of contract included failing to comply with contract

terms regarding the term of the agreement and extensions of same.

118. Defendant HISD's breach of contract included failing to adhere to the contract

terms in compliance with HISD's duty of good faith and fair dealing.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 18

VIII.

CAUSES OF ACTION

Count 5:

Quasi Estoppel

128. Plaintiffs hereby incorporate the foregoing by reference.

129. Defendant HISD invited bids and performed for a while under the contract

attached.

130. Defendant HISD now has taken the inconsistent action of backing out of the bid

process it adopted only so as to favor other contractors who are principal

benefactor of Defendant Marshall, President of the Board.

131. It is inequitable to allow Defendant HISD to take such action when there is no

legitimate basis to do so.

IX.

CAUSES OF ACTION

Count 6:

Tortious Interference with Existing Contract

132. Plaintiffs hereby incorporate the foregoing by reference.

133. Plaintiff had the valid contract attached.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 19

134. The defendants MASRAHALL, in his individual capacity, Jackson, RHJ, FBM

and Medford willfully and intentionally interfered with the contract so as to secure

the business for their own benefit.

135. The interference was a proximate cause of Plaintiffs ’ damages.

136. Plaintiffs incurred actual damage or loss.

X.

CAUSES OF ACTION

Count 7:

Tortious Interference with Prospective Contract

137. Plaintiffs hereby incorporate the foregoing by reference.

138. There was a reasonable probability that the Plaintiffs would have entered into

additional contracts with HISD.

139.

The defendants MASRAHALL, in his individual capacity, Jackson, RHJ, FBMand Medford intentionally interfered with the relationship.

140. The Defendants' conduct was independently tortious or unlawful.

141. The interference was the proximate cause of plaintiffs' damages.

142. Plaintiffs suffered actual damage or loss.

XI.

CAUSES OF ACTION

Count 8:

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 20

Declaratory Judgment

143. Plaintiffs hereby incorporate the foregoing by reference.

144. Plaintiffs request the Court enter a declaratory judgment against HISD that the

subsequent bid process awarding the described work to Jackson, RHJ, FBM and

Medford was illegal or were procured by fraud.

145. Plaintiffs request the Court find that the bid process must be re-started in

compliance with all laws and without preference to any person or party.

XII.

CAUSES OF ACTION

Count 9:

Civil Conspiracy

146. Plaintiffs hereby incorporate the foregoing by reference.

147. Defendants Marshall, in his individual capacity, RHJ, Jackson, FBM, and Medford

are a combination of two or more persons.

148. One object of the combination was to accomplish unlawful purposes or a lawful

purpose by unlawful means.

149. Each of the members of this conspiracy had a meeting of the minds on the course

of action.

150. One or more of the members committed an unlawful act, overt act to further the

object or course of action.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 21

151. Plaintiffs suffered injury as a proximate result of the wrongful act.

XIV.

REQUEST FOR PERMANENT INJUNCTION

152. Plaintiffs hereby incorporate the foregoing by reference.

153. Plaintiffs request the Court enjoin Defendant HISD from further awarding work of

contracts based upon the unlawful bid procedure outlined above.

154. If the Plaintiffs’ Injunctive Relief is not granted, irreparable harm is imminent.

155. The Plaintiffs have no adequate remedy at law because the substantial damages

and harm from Defendants ’ conduct are incalculable and a money judgment could

not serve as adequate compensation for the wrong inflicted on the Plaintiffs.

XV.

ATTORNEYS FEES

156.

Plaintiffs request award of their reasonable and necessary attorneys’ fees for thisaction including the constitutional claims and claims arising under the contract.

See, e.g., 42 U.S.C. § 1983, 18 U.S.C. § 1964, 18 U.S.C. § 2201 and Tex. Civ.

Prac.& Rem. Code § 38.001.

157. Defendants are not entitled to qualified or sovereign immunity because

Defendants ’ actions clearly violate an established constitutional right and

Defendants’ conduct was objectively unreasonable in light of clearly established

law at the time of the incident.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 22

XVI.

JURY DEMAND

158. Plaintiffs assert their rights under the Seventh Amendment to the U.S. Constitution

and demands, in accordance with Federal Rule of Civil Procedure 38, a trial by

jury on all issues.

XVII.

PRAYER

For the foregoing reasons, the Plaintiffs respectfully request that the Court enter

judgment against Defendants consistent with the relief requested herein, and for any and

all relief to which Plaintiffs may show they are entitled.

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 23

Dated this 11th day of October, 2011.

Respectfully submitted,

BRAZIL & DUNN

/s/ Chad W. DunnChad W. Dunn – Attorney in Charge TBN 24036507; Fed. I.D. No. 33467K. Scott BrazilTBN 02934050; Fed. I.D. No. 25854201 FM 1960 West, Suite 530Houston, Texas 77068

Telephone: (281) 580, 6310Facsimile: (281) 580-6362E-Mail: [email protected] E-Mail: [email protected]

T HE G REENWOOD P RATHER L AW F IRM Kelly Greenwood PratherTBN 00796670; Fed. I.D. No. 218291300 McGowen StreetHouston, Texas 77004

Telephone: (713) 333-3200Facsimile: (713) 621-1449E-Mail: [email protected]

ATTORNEYS FOR PLAINTIFFS

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PLAINTIFFS’ SECOND AMENDED ORIGINAL COMPLAINT – Page 24

CERTIFICATE OF SERVICE

I hereby certify that on October 11, 2011, I electronically filed the foregoingdocument with the Clerk of the United States District Court, Southern District of Texas,Houston Division, using the electronic case filing system of the Court. The electroniccase filing sys tem sent a “Notice of Electronic Filing” to the following attorneys of record who have consented in writing to accept this Notice as service of this document byelectronic means:

John M. HopkinsArturo G. MichelThompson & Horton, LLP3200 Southwest Freeway, Ste. 2000Houston, TX 77027

(Attorneys for Defendants Houston Independent School District and Lawrence Marshall)

Michael J. StanleyStanley, Frank & Rose, LLP7026 Old Katy Road, Suite 259Houston, TX 77024( Attorneys for Defendants RHJ-JOC, Inc.and Eva Jackson )

/s/ Chad W. Dunn

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UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF TEXASHOUSTON DIVISION

THE GIL RAMIREZ GROUP, L.L.C.;AND GIL RAMIREZ, JR.

Plaintiffs ,

vs.

HOUSTON INDEPENDENT SCHOOLDISTRICT; LAWRENCE MARSHALL;EVA JACKSON; AND RHJ-JOC, INC.

Defendants .

§§§§§§§§§§

§§

Case No. 4:10-CV-04872JURY REQUESTED

ORDER GRANTING PLAINTIFFS,THE GIL RAMIREZ GROUP, L.L.C. AND GIL RAMIREZ, JR.,

MOTION FOR LEAVE TO FILESECOND AMENDED COMPLAINT

BE IT REMEMBERED and came on to be heard Plaintiffs, THE GIL RAMIREZ

GROUP, L.L.C. and GIL RAMIREZ, JR., Motion for Leave to File their Second

Amended Complaint in the above-entitled and numbered cause. After considering the

Motions, pleadings on file, arguments of counsel, and after due consideration, it is

IT IS HEREBY ORDERED that Plaintiffs, THE GIL RAMIREZ GROUP, L.L.C.

and GIL RAMIREZ, JR., Motion for Leave to File their Second Amended Complaint is

GRANTED.

SIGNED this ____ day of _______________________, 2011.

PRESIDING JUDGE

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APPROVED AND ENTRY REQUESTED:

BRAZIL & DUNN

/s/ Chad W. DunnChad W. Dunn – Attorney in Charge TBN 24036507; Fed. I.D. No. 33467K. Scott BrazilTBN 02934050; Fed. I.D. No. 25854201 FM 1960 West, Suite 530Houston, Texas 77068Telephone: (281) 580, 6310

Facsimile: (281) 580-6362E-Mail: [email protected] E-Mail: [email protected]

T HE G REENWOOD PRATHER L AW F IRM Kelly Greenwood PratherTBN 00796670; Fed. I.D. No. 218291300 McGowen StreetHouston, Texas 77004Telephone: (713) 333-3200

Facsimile: (713) 621-1449E-Mail: [email protected]

ATTORNEYS FOR PLAINTIFFS

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