NFL Hall of Famer Win in Homebuilder Bankruptcy Dispute Reversed

An NFL Hall of Fame running back and his wife’s breach of contract claims in a custom home builder’s bankruptcy don’t rise to fraudulent nondisclosure, the Fifth Circuit found, reversing a ruling in favor of the couple.

Steven Clem, the former CEO of Bella Vita Custom Homes LLC, was hired to build a $4.5 million house near Dallas for LaDainian and LaTorsha Tomlinson. Following disputes over how money was spent, an arbitration panel ruled in the Tomlinsons’ favor, finding Clem violated the Texas Deceptive Trade Practices Act.

Clem and Bella Vita filed for bankruptcy, and the US Bankruptcy Court for ...