Cypress assisted-living facility at the heart of legal controversy

The executive committee of a Cypress-area assisted-living facility is seeking a temporary restraining order to stop the executive general manager from running the facility’s day-to-day activities.

The Executive Committee of Sterling Oak Co., and others, filed a lawsuit on Jan. 24 in the Harris County District Court against Daniel Parish, John Settle, Eldridge Parkway Assisted Living and Lone Star Assisted Living, alleging breach of fiduciary duty, oppression of Sterling Oak Member interests, breach of contract and conspiracy.

The plaintiffs say that in 2007, defendant Parish, as executive general manager of Sterling Oak, expressed his wish to purchase an investor’s interest in the facility, located in Cypress. According to the 27-page brief, the executive committee, aware of the possibility of a conflict of interest, decided the value of the facility should be assessed by outside appraisers. This did not happen, the plaintiffs say, because Parish did not provide the requested audited financial statements needed to appraise the home.

On Dec. 3, the executive committee asked Parish to resign as general manager of the facility so he could bid on it. The plaintiffs state that Parish agreed to resign, but violated the agreement by returning to work and, among other things, undermining and subverting the efforts of the facility’s marketing consultant.

The plaintiffs are seeking injunctive relief, all damages alleged and proven, exemplary damages, attorney’s fees and court costs. They are being represented in the case by Houston attorney John Glover.

Harris County District Court Case No. 2011-04528.

This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.