Webb CISD settles double dipping allegations with lawyer

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Webb Consolidated Independent School District and attorney Juan J. Cruz have reached a settlement in their lawsuit.

In 2019, WCISD filed a lawsuit against Cruz, alleging that he and his company dipped into school district finances to receive payments that would result in a conflict of interest.

The settlement in favor of WCISD is $232,958.52 payable by Juan Cruz and J. Cruz & Associates, LLC.

The agreement also states that WCISD will delete all information regarding Juan J. Cruz, J. Cruz & Associates LLC, regarding the lawsuit and the settlement agreement, except for information regarding the settlement which is to be released by the law.

The original petition, filed in 2019, alleged that Juan J. Cruz and J. Cruz & Associates fraudulently induce WCISD to enter into a legal services contract that allowed the company to charge large sums of money by drawing twice in the pockets of taxpayers, teachers and children in the district by being paid as general counsel and at the same time being paid as bond attorney.

On June 4, 2019, Webb CISD placed J. Cruz & Associates LLC under misconduct investigation and demanded that the company produce all of Cruz’s records, files, and other evidence, including: contracts between the company and Webb CISD, billing statements submitted to the district. for services rendered by the company, letters, text messages, emails and any other communication with anyone related to Webb CISD, cell phone records, social media records and all complaints filed against Cruz and the company regarding what whether at Webb CISD, according to the petition.

“At all times, Juan J. Cruz and J. Cruz & Associates, defendants, presented themselves as experts in the field of school law dealing with the general counsel and bond attorney matters for which they were retained”, indicates the petition.

He said Cruz failed to disclose a conflict of interest when he acted as general counsel and concurrently as obligations attorney for Webb CISD.

The settlement agreement, filed March 24, says it must be presented to the WCSD board for approval on April 11.

The WCSD voted in September 2020 to investigate Cruz and board members Robert and Amy Marshall due to financial issues and breach of solicitor-client privilege, respectively.

The school district alleged the Marshalls breached attorney-client privilege after a closed meeting at a 2020 board meeting. by attorney Ronald Rodriguez in any future litigation would be a violation of confidentiality, board rules and Texas law.

The comments were reported in local media in an attempt to undermine the express directive that board gave me to represent the school district, Rodriguez said in 2020.

The Marshalls told LMT in 2020 that they believed there was no evidence against the allegation presented about them.

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