Three Months After Filing Suit Against Kathy Nealy, the AAC's Tired of Waiting For an Answer

Categories: Legal Battles
suiteattheaac.jpg
On June 30, as I'm almost positive you'll recall, FBI agents raided the offices of Dallas County Commissioner John Wiley Price; his executive assistant, Dapheny Fain; and Kathy Nealy, the well-connected political consultant. What you may have missed: Nineteen days before the raid, Center Operating Company, which owns and operates the American Airlines Center, sued Nealy in Dallas County District Court, claiming she owes $131,639.43 for a lower-level suite she licensed in 2009. Which, as The News would later note, is the least of her problems. Because in addition to the FBI investigation, the IRS also claims she "owes more than $459,000 in federal taxes, interest and penalties."

The AAC's complaint, which follows, is short on details; it just says she licensed the suite in '09 and after "numerous demands," she "continued to fail and refused to pay the past due amounts." On her website, Nealy lists American Airlines as one of her "business consulting" clients -- at the very top, matter of fact, just above the Dallas Independent School District.

Every now and then I'll peek into the file jacket to see if Nealy's responded to the complaint. For weeks now, nothing -- because, it says, Nealy's attorney, OU associate law prof Cheryl Wattley, wasn't served till August 10. A response was expected in early September. Wattley's yet to file anything, and AAC attorney Brian Vanderwoude is so tired, tired of waiting, which is why he filed a motion for partial default judgment yesterday. Writes Vanderwoude, the AAC agreed to give Nealy an extension till September 13 while they "engaged in discussions in an attempt to resolve this dispute," but those proved fruitless. Meanwhile, Wattley and Nealy are no-shows, and the AAC considers Nealy "currently in default."

Vanderwoude's motion follows -- along with the attachments, which include several emails between he and Wattley in which most if not all of the text has been redacted. AACvKathyNealyAACMotionforDefaultJudgment
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13 comments
Oak Cliff Res
Oak Cliff Res

The raid was actually June 27th not June 30th...

Doug
Doug

Being a poor SOB...kinda curious how this whole suite thingy works...do people just write a check?  Do they make monthly payments?  Given that she's apparently in arrears, is she allowed to use it (or make it available to her 'friends')?  Why wouldn't the AAC just change the locks and rent it to someone else?

NealK
NealK

I guess Andrews Kurth LLP stopped giving her the money to pay for the suite?  At least that was the arrangement when the AAC first opened (while at the same time AK lawyers were trying to get business from Dallas County -- go figure).

Confused
Confused

In other posts, you guys have said that Nealy was given the suite by the Perots as a reward for derailing the Inland Port.  If that's the case, then what's their problem now?  Don't get me wrong, I think that Kathy Nealy is the devil (or, at least, his political consultant).  I just want to have my story straight.  Please enlighten me!

Sharon Boyd
Sharon Boyd

If Cheryl Wattley is representing Nealy, she will probably use the argument that Nealy "has sweat equity" in the AAC, that she owns that suite outright because she delivered all those dead people's vote from the Southern Sector in the arena sales tax election in '98.   Those rich White guys (Perot, Jr. & Hicks) let her believe that the hundreds of thousands they paid her in that election was just part of her package deal.   It's an argument Wattley used years ago in another case where a manager decided she owned an interest in a Mexican villa due to her "sweat equity" in the property.

Oak Cliff Townie
Oak Cliff Townie

Every now and then I'll peek into the file jacket to see if Nealy's responded to the complaint. For weeks now, nothing -- because, it says, Nealy's attorney, OU associate law prof Cheryl Wattley, wasn't served till August 10.

So why not serve the person in question ?  Whats with the waiting to serve her  attorney .

Just asking .

Wylie H.
Wylie H.

Re-upping that lease on the suite appears to have been bad judgement on Kathy Neely's part.  I suspect that the lion's share of her income over the last few years came from American Airlines et. al. in connection with the restructuring of the Wright Amendment (an issue in which hundreds of millions of dollars were at stake). 

Once the revised version of the Wright Amendment was cemented in place, American Airlines, the City of Ft. Worth and the DFW Airport Board didn't really have much use for her services anymore.

Tiredofhearingaboutit
Tiredofhearingaboutit

The AAC and IRS are just part of a huge plot to bring down black leadership.  It couldn't possibly be she wasn't paying her bills.

Ed D.
Ed D.

So Kathy Nealy is not in active military service? So glad to have that cleared up by an array of legal filings.

Tom L (No, Not That L)
Tom L (No, Not That L)

"Bills" are tools of The Man, designed to keep good hard working African American leaders down.  Kathy Nealy is working hard for the African American community, she shouldn't subject to capricious and random "bills" from The Man just because she used a certain good or service!

Heywood U Buzzoff
Heywood U Buzzoff

White People all going to Hell -- after a stop at AAC and visitin' all those and business at Victory.

Rico
Rico

That array of legal filings is statutorily required before a default judgment can be taken against any individual defendant. The intent is to protect servicemen and women from having judgments rendered against them while they are away on duty.

BCulbreath
BCulbreath

 Kathy Nealy clients are White (the Man) so she was not out working hard for the AA community. I don't know anyone who could own a suite in AAC that was built with Tax Payers money and not pay and keep use of suite.

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