On May 15, 2019, Rim sold the project to Passco Companies, LLC, which ultimately assigned its interest to Passco Tribute DST (“Passco”). Passco alleged that in approximately March 2021, it discovered systemic and isolated design and construction defects related to the building envelope, including water penetration and leaks. On May 6, 2022, Passco filed suit against Rim, Continental, and others in the 73rd Judicial District Court for Bexar County, Texas, asserting claims including fraud, breach of contract, and conspiracy to defraud. Continental then filed a third-party petition for contribution and indemnity against certain subcontractors, including FCL.
Associated Industries demands Colony pay $3.35 million in Texas dispute
