A dispute over money, records and control of a Katy Asian Town retail center has moved into Harris County district court.
Robert Lin, individually and derivatively on behalf of United Max Katy LLC, and investors Peter and Karen Hsieh filed suit against Cheng-Ching Lin, also known as Josie Lin, and United Max Katy LLC.
The lawsuit, filed under Cause No. 2025-27658, alleges that Josie Lin denied company members access to financial records and caused United Max Katy LLC to take on millions of dollars in loans tied to disputed business transactions.
The allegations have not been proven in court.
Katy Asian Town retail center
According to the petition, United Max Katy LLC was formed as a real estate investment company to develop and operate commercial property.
The company’s current property is located in Katy Asian Town.
The petition states that UMK owns and operates a single-story retail center with 17 commercial units. Fifteen units, identified as A3 through A17, are owned by UMK and offered for lease.
Robert Lin and the Hsiehs allege they are members of UMK and contributed significant six-figure sums to the company.
The lawsuit says Josie Lin is a managing member of UMK.
AMA Kitchen lease questioned
The dispute traces part of its origin to March 2022.
The petition alleges Josie Lin announced that units A3 through A6 would be leased to AMA Kitchen.
The plaintiffs claim they were not told that AMA Kitchen was managed, related to, or owned by Josie Lin. They also allege the restaurant build-out would be charged to, and paid for by, UMK.
According to the lawsuit, UMK entered into a $5.5 million loan with Preferred Bank in March 2022. Plaintiffs allege some of the money was used to pay off a Mint Bank loan, while another portion was used to pay for the AMA Kitchen build-out.
The petition also alleges UMK entered into a $2 million loan with New Era Life Insurance in June 2021.
The plaintiffs allege Josie Lin caused UMK to enter into $7.5 million in loans between June 2021 and March 2022. They claim the loans were made without adequate disclosure of financial need or benefit to UMK, other than the disputed build-out for a tenant they allege Lin owned or controlled.
Balance-sheet entries raise questions
The lawsuit also challenges several balance-sheet entries.
According to the petition, a December 2022 balance sheet showed an unidentified “member” owed UMK about $1.085 million. It also showed an entity identified as UMK Elite owed UMK about $3.05 million.
The plaintiffs describe those entries as examples of unusual items on UMK’s financial records.
The lawsuit further alleges that United Max Katy Elite LLC was formed by Josie Lin, who was listed as managing member and registered agent.
According to the petition, a December 2023 balance sheet also identified several receivables or advances. Those included about $471,800 allegedly owed by Asunitedall, about $159,903 owed by JL Solution, about $2.5 million owed by UMK Elite, and a “partner advance” of about $1.58 million.
The plaintiffs allege several entities listed as owing money to UMK are owned or operated by Josie Lin.
They also allege the partner advance violated the UMK Company Agreement.
No court has ruled on those claims.
Plaintiffs seek company records
The lawsuit says Robert Lin and the Hsiehs asked several times for explanations and access to UMK books and records.
They allege Josie Lin refused to provide full access or a clear explanation.
On October 30, 2024, attorneys for the plaintiffs sent a formal written request to inspect and copy UMK’s books and records. The request included company records, governing documents and tax records.
The petition alleges the request was initially ignored and later met with a demand that plaintiffs sign a confidentiality agreement before any inspection.
The plaintiffs contend that neither Texas law nor UMK’s company agreement required a confidentiality agreement before inspection.
They further allege Josie Lin and UMK maintained that some basic records would not be provided even if a confidentiality agreement was signed. Those records allegedly included the company agreement, operating agreement, amendments and tax records, including Schedule K-1 forms.
Texas records law cited
The lawsuit cites Section 101.502 of the Texas Business Organizations Code.
That section provides that, unless an LLC’s governing documents say otherwise, a member or assignee may examine and copy company records after a written demand stating a proper purpose.
The statute also allows inspection through an agent, accountant or attorney.
The petition asks the court to order Josie Lin and UMK to allow the plaintiffs and their representatives to examine and copy UMK’s books and records.
The plaintiffs also cite the 1981 Texas appeals case Chavco Investment Co. v. Pybus. In that case, the court affirmed a writ of mandamus allowing inspection of corporate books and records.
The petition argues the same principle supports the plaintiffs’ demand to review UMK records.
Separate United Max Katy II appeal
The lawsuit also refers to separate litigation involving United Max Katy II LLC.
In a January 2025 appellate opinion, the First Court of Appeals said Cheng-Ching Lin, also known as Josie Lin, filed a petition for writ of mandamus challenging two trial-court discovery orders dated January 8, 2025.
Those orders compelled production of company documents, books and records in litigation involving Eastern JV Holdings LLC, individually and derivatively on behalf of United Max Katy II LLC, and Peter and Karen Hsieh.
Texas First Court of Appeals denied Lin’s mandamus petition and her emergency request for temporary relief.
That ruling left the discovery orders in place. It did not decide the merits of the underlying allegations.
Claims and damages sought
The lawsuit asserts claims for the right to examine and copy records, mandamus, indemnity and breach of duties.
The plaintiffs allege Josie Lin owed duties to UMK and its members, including duties of good faith, loyalty, candor and disclosure.
They claim she breached those duties by allegedly using UMK money for a tenant build-out, making or allowing loans or advances to related entities, granting a partner advance, and placing unnecessary debt on UMK.
The plaintiffs seek access to UMK records, attorney’s fees, costs, direct damages, consequential damages, interest, exemplary damages where allowed, disgorgement, forfeiture and other equitable remedies.
They also seek monetary relief of more than $250,000 but not more than $1 million, along with non-monetary relief.
No ruling on allegations
The case remains a civil dispute based on allegations in a court filing.
No court has determined whether Josie Lin or United Max Katy LLC violated Texas law, breached duties, misused company funds or improperly withheld records.
NewsBlaze will report further developments as the case proceeds.
Clarence J. Walker is a senior legal reporter and news editor for HoustonNewsToday.com. He can be reached at HoustonNewsToday@yahoo.com.
