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Commissioners extend temporary restraining order in Lake Towns litigation, authorize county attorney to represent county
Summary
After executive session, Henderson County Commissioners Court authorized the county attorney to represent the county in CV‑25‑0464‑3 and unanimously extended a temporary restraining order affecting the Lake Towns at Lake Palestine development to Oct. 21, 2025; the court discussed contingent extensions tied to developer closing and cure actions.
HENDERSON COUNTY, Texas — Following a closed executive session under Texas Government Code §551.071, the Henderson County Commissioners Court authorized the county attorney to represent the county in litigation against Chill Labs LLC and related parties (cause number CV‑25‑0464‑3) and unanimously extended a temporary restraining order (TRO) in the matter to Oct. 21, 2025.
During open session the county attorney summarized discussions and recommended the court approve an extension of the TRO and said the county would seek an agreed order with attorneys for Cattleman's Bank and Chill Labs to formalize the extension. The county attorney said the extension would provide time for parties to pursue a new letter of credit, a bond, development‑plan extensions and a possible property closing intended to get construction back on schedule.
Attorneys for the developers, who spoke during the open session, asked the court to consider a contingent extension of construction deadlines if the buyers close before the TRO expires. The court discussed the request and the practical effect on investors and sureties, noting that some lenders and bond companies are reluctant to fund a project that is arguably already in default.
Court members outlined conditions they want satisfied before approving longer extensions: resolution of related litigation (the Myers matter referenced in discussion), removal or resolution of liens on the property, and proof of a successful purchase/closing by Chill Labs (or successor buyer). The court signaled willingness, in principle, to extend bonds, letters of credit and development and construction deadlines for a new 12‑month period if those conditions are met, but it did not adopt such an extension in a binding motion at the meeting.
Actions: Commissioner Richardson moved and Commissioner Spivey seconded a motion authorizing the county attorney to represent Henderson County in CV‑25‑0464‑3 and all related matters; the motion passed unanimously. Commissioner Richardson then moved to extend the TRO to Oct. 21, 2025; Commissioner Spivey seconded and the extension passed unanimously.
Why it matters: The litigation and scheduling around the Lake Towns at Lake Palestine subdivision affect developer obligations, surety and bond timelines, potential property closings and the county’s ability to enforce construction deadlines. Court members repeatedly emphasized the county’s interest in seeing the property developed but stressed the need for clear proof of funding, lien resolution and contractual performance before granting longer extensions.
