LEAGUE CITY — Property owners in the Magnolia Creek subdivision waiting to get a piece of a $1.7 million refund will have to wait a little longer. 

League City has asked a court to help sort out which current and former property owners in the first phases of the Magnolia Creek subdivision should get a slice of the refund after receiving more than 600 claims on the 319 affected properties. The city has filed an interpleader petition in Judge Lonnie Cox’s 56th District Court in Galveston.

But while the court had a status conference last month, the court took no action other than to set up another conference for Sept. 18, the city said. 

The holdup is that 38 of the 515 parties named in the action have still not been served with the information they need, the city said. 

Notices to homeowners and others filing claims on the properties began going out  in April. Property owners who receive a notice can file a response with the court to make the court aware that they are in the case, City Attorney Arnold Polanco said in April. 

On its website, the city said it was essential that every claimant pick up a packet of information regarding the interpleader agreement at the city’s post office. 

“The city intends to make every effort to ensure that you have an opportunity to receive the funds you have claimed,” the city said. “Claimants who do not pick up their packets may receive service in person to ensure that they are aware of the proceedings and retain the opportunity to benefit from the court’s decision.”


Contact reporter Christopher Smith Gonzalez at 409-683-5314 or chris.gonzalez@galvnews.com

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