Colleyville's Costly Defeat: Taxpayers Pay $1.37M After Failed Lawsuit

COLLEYVILLE, TX – April 08, 2026 – The City of Colleyville has paid $1,368,405.37 to a general contractor, closing a contentious chapter in a multi-year legal battle that ended in a total loss for the city. The payment to Mart, Inc. resolves a dispute over renovations to the Colleyville Senior Center and covers the principal amount owed, substantial accrued interest, and the contractor's attorney’s fees, all funded by taxpayers after the city's legal strategy was dismantled by two separate courts.

The final payment follows a published opinion from the Second Court of Appeals of Texas, which sided decisively with the contractor. The case, which revolved around project delays, has now concluded, but it leaves behind a multi-million dollar bill and raises serious questions about the city's decision-making and stewardship of public funds.

"This case is over, and Colleyville lost at every meaningful level," said Stephen W. Davis, attorney for Mart, Inc. "The City didn’t just lose in court — it lost the moment it chose ego and an inexplicable legal strategy over accountability."

A Decisive Legal Blunder

The legal foundation of Colleyville's case crumbled under judicial scrutiny. The city had sought to penalize Mart, Inc. for project delays by levying a charge of $5,000 per day. However, in a definitive ruling (Case No. 02-25-00276-CV), the appellate court declared this charge was not a form of legitimate damages but rather an "illegal penalty" with no rational basis. This determination effectively gutted the city's claims and left it with no legal ground to stand on.

The court's decision was a "published opinion," meaning it now stands as a legal precedent that can be cited in future cases, amplifying the significance of Colleyville's loss beyond its own city limits. It serves as a cautionary tale for other municipalities regarding the drafting and enforcement of construction contracts.

After years of litigation and public assertions of being in the right, the city quietly authorized the full payment to Mart, Inc. during a City Council meeting on November 5, 2025. The council voted 7-0 to approve the settlement, acting on the advice of the city attorney who acknowledged the appellate court's ruling made the city's damage claims unenforceable. The final payment was confirmed by Mart, Inc.'s counsel this week, bringing the long-running saga to an unceremonious end for the city.

The Senior Center Project at the Center of the Storm

The dispute originated from the much-anticipated renovation of the Colleyville Senior Center, a project with an estimated cost of over $3.4 million. The work, which began in early 2022, was extensive, involving an expansion of the facility, a redesign of the interior, and a facelift for the building's exterior.

Throughout the legal battle, the city maintained that Mart, Inc. was responsible for significant delays and defective work. However, the contractor consistently countered that the city was the source of the problems.

"This was never about defective work," said Tim Proctor, President of Mart, Inc. and a Colleyville resident. "Mart delivered first-class renovations." Proctor's position, outlined in a statement, is that "the delays were caused by the city’s own broken plans and mismanagement."

This claim is seemingly bolstered by an ironic twist: Colleyville Mayor Bobby Lindamood had previously praised the quality of the renovations in a post on the city's official Facebook page. This public commendation stood in stark contrast to the city's official legal position that the contractor's work was flawed. The renovated Senior Center eventually opened to the public in 2024.

Taxpayers Foot the Bill for a 'Scorched-Earth' Strategy

For Colleyville residents, the financial fallout from the city's failed legal gambit is substantial. The nearly $1.4 million payment to Mart, Inc. is only part of the total cost. That figure includes the principal amount the city originally withheld, plus years of accrued interest and the legal fees Mart, Inc. spent defending itself.

On top of that, Colleyville taxpayers also funded the city's own legal costs. Mart, Inc.'s attorney, Stephen W. Davis, described the city's approach as a "scorched-earth legal strategy that was pure folly." He asserted that the city spent a fortune on its own defense before being ordered to pay for the other side's costs as well.

"Colleyville spent hundreds of thousands of dollars paying its own lawyers to defend the indefensible," Davis stated. "Then, after losing, it had to pay Mart’s lawyers too — plus interest. That is what happens when a city refuses to admit it’s wrong."

According to Davis, the entire financial loss was preventable. "This wasn’t a close call. This wasn’t a gray area," he said, referencing the unambiguous rulings from both the trial and appellate courts. "The trial court and the appellate court said the city’s so-called damages were a sham. Once that opinion came down, the city had no choice but to pay."

Lingering Questions of Accountability

With the final check sent and the case officially closed, the focus now shifts to accountability within Colleyville's city government. The decision to pursue and prolong the costly litigation spanned several years and involved top city officials.

City Manager Jerry Ducay, who in August 2022 publicly stated the city had "strong legal grounds" to appeal an initial trial court loss, was ultimately the official authorized to execute the final settlement. The City Council, led by Mayor Bobby Lindamood, maintained its course of action through multiple stages of the legal process before finally capitulating after the appellate court defeat.

The outcome has left observers and the victorious legal team questioning the judgment behind the city's multi-year crusade. "Every extra dollar beyond the principal amount owed came from taxpayers," Davis noted. He posed a series of questions that now hang over city hall: "who approved this strategy, who kept doubling down, and why did it take two court losses to end it?"

As the city moves on from the dispute, its residents are left to ponder the answers and the nearly $1.4 million price tag of their city's defeat. The scoreboard, as Davis put it, is final. "There’s no appeal left. There’s no dispute left. The scoreboard is final — Mart wins, Colleyville pays."