Lawsuit against PDA Nightclub takes unexpected turn as investor claims breach of settlement
HOUSTON - We first reported on the lawsuit against PDA Nightclub last April. Recently, the case took a highly unusual turn.
In ads on Instagram, PDA Houston looks like a fun place to drink and dance.
"I thought it was a great opportunity at the time," said Juan Paz. "Thought I was going to get a good return on my money."
But Juan ended up suing PDA Houston, LLC and PDA Hospitality, LLC for half a million dollars alleging he was lied to and misled.
Juan says the hi-end exclusive lounge he invested half a million dollars in to failed to become a reality.
In August, Juan and the owners of PDA signed a confidential settlement agreement paying him $600,000.
"Never in my 20 years have I seen a party breach a promise of this size," said Juan's attorney, George Edwards. "I'm sure there are reasons that might exist for that, but one wonders why were the promises made in the first place."
"They didn't come through on September 16," Juan said.
Since PDA's owners failed to pay by that date, the confidential settlement agreement becomes public.
With the agreement breached, Edwards says he will ask the court for a judgment, and all the original claims made in the suit will proceed to trial.
"What we are asking the court to do is to award us all of our fees it cost us to get to this point, in addition to the amount our client was supposed to be paid," said Edwards.
"I feel like they continue to buy time," Juan said. "I don't know what their plan is. I really don't."
We reached out to the attorney representing PDA Nightclub for comment, but we haven't heard back.