Heffner

ORDER DENYING RDHK’S MOTION TO DISMISS

This matter is before the Court on RDHK Ventures’ motion to dismiss Counts 1 & 3-11 on respondeat superior grounds. All Defendants have joined in RDHK’s motion. For the reasons stated below, RDHK’s motion is denied.

I. Background

This ease arose out of the purchase, sale, and ultimate failure of a master planned community development project: the Redhawk Ranch (“Redhawk”). In April 1987, Great American Development Corporation (“GADCO”), a development corporation wholly owned by Great American Bank, purchased Redhawk. Defendant Lawrence A. Heffner was the Senior GADCO officer responsible for developing Redhawk. Heffner was the GADCO officer authorized to expend funds on GADCO’s behalf in order to develop its various properties and to bind GADCO in any necessary contractual obligations.

In early 1989, William Dean of W.W. Dean & Associates 1 expressed interest in purchasing Redhawk from GADCO. To advance his goal of purchasing Redhawk, Mr. Dean agreed with Weyerhaeuser Realty Investors, Inc. (‘Weyerhaeuser”), to create RDHK Ventures, a limited partnership. RDHK Ventures would be the entity through which Mr. Dean could raise the capital…