A real estate partnership dispute will have to be settled in the courts after each partner sued the other.
Gary Richardson and Jordan Jeter formed two land development LLCs in 2022 to buy, develop and sell housing in Washington and Benton counties.
In May, Richardson filed a lawsuit in Washington County Circuit Court against Jeter, who responded with a countersuit. The two partners had formed their Jorich Investments I and II with each contributing about $700,000.
Richardson is a contractor and developer; Jeter is an investor and real estate agent.
The partnership went sour in 2023 when Jeter proposed to Richardson that the LLCs sell the developed lots before residential homes were built, Richardon’s suit said.
According to Richardson’s complaint, the partnership’s purpose was to sell homes on the lots for greater profit.
Richardson’s suit alleged that Jeter was having financial difficulties so he wanted to sell the lots to make a quick profit.
His complaint also alleged that Jeter contacted a potential buyer and told him to use Jeter as the real estate agent in the deal to get a commission or else Jeter, as a 50% owner, would raise the price of the lots.
Richardson’s suit asked that Jeter be removed from the partnership.
Jeter’s countersuit alleged Richardson created a dispute for personal reasons and was “intentionally taking actions” to hurt him financially. Jeter’s suit said he tried to end the partnership by invoking the deadlock clause of the LLCs with a $1.2 million buyout offer.
The clause requires Richardson to either accept the offer, buy out Jeter instead or dissolve the partnership.
Richardson’s suit asked that Jeter not be permitted to invoke the clause and be dismissed from the partnership.
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