Mullenix Real Estate and Hospitality Family Suing Father in St. Louis County Court

Brothers Michael, Douglas, and Gregory Mullenix are suing their father, Country Life Acres neighborhood resident, Ivan Mullenix in the St. Louis County courtroom of Judge David Vincent.

The brothers own Equis Hospitality Management which is involved in hotel development, management, and construction. Equis’ portfolio includes Homewood Suites by Hilton/Galleria, Fairfield Inn by Marriott/St. Charles, Town Place Suites by Marriott/St. Charles, Homewood Suites by Hilton/Riverport, and the Residence Inn by Marriott/Earth City.

The family also owns Mullenix-St. Charles Partnership (MSCP) which owns and operates the Time Centre Apartments in St. Charles.

According to court documents the brothers allege they reached an agreement with Ivan Mullenix where he would transition out of involvement in MSCP and retire.

In 2005, MSCP agreed to refinance the apartments allowing Ivan to take some of his equity out of the property giving him more liquidity in retirement.

Redstone Mezzanine I, LLC refinanced the deal with the following stipulations, 1) Mullenix Real Estate (MRE), a company owned by the brothers be named manager of the apartments and 2) Ladue resident Michael Mullenix be named a guarantor.

A source familiar with the family says the brothers relationship with Ivan Mullenix has been tenuous at best and by 2007 had deteriorated to the point that Ivan Mullenix sent a letter to MRE purporting to terminate the management agreement.

According to court documents, the brothers allege that Ivan Mullenix took this action in response to the brothers firing longtime Mullenix employee Kelly Kinnaman and that regardless of the terms of the agreement Ivan Mullenix set up a new corporation, Mullenix Property Management, Inc. (MPM), to manage Time Centre Apartments.

The brothers further allege in court documents that since September of 2007 Michael Mullenix has been unable to take any action or review any documents ensuring that MSCP is appropriately handling its obligations to Redstone and that he has no way to protect himself in the event that Redstone should attempt to call on his guarantee of the financing.

The court documents also allege that the brothers believe that Ivan Mullenix has been diverting, converting, and laying waste to the assets of MSCP through the use of his new corporation MPM and using funds diverted or converted from MSCP and Time Centre for purposes unrelated to the management or operation of Time Centre.

The brothers are requesting Judge Vincent award them an amount in excess of $25,000 and transfer to them copies of all books and records of account, financial statements, ledgers, rent rolls, bank statements, canceled checks, invoices, receipts, and any other documents reflecting the income, assets, and liabilities of MSCP.

Lynn Brackman and Joseph Trad of Lewis, Rice & Fingerish are representing the brothers and declined comment citing pending litigation.