Fort Worth City Councilman Michael D. Crain’s legal battle with his former business partner Will Northern escalated on Monday.

In a counterclaim, Northern accused Crain of breaching their business agreements and attempting an unlawful takeover of their jointly owned companies.

Crain earlier this month sued Northern in Tarrant County District Court, alleging that Northern cut him out of the Woodhaven redevelopment real estate project and misused company resources. The dispute stems from their shared ownership of three companies under the Northern Crain brand: Northern Crain Realty, Northern Crain Property Management, and Northern Crain LLC.

In a statement, Northern called the lawsuit a “calculated attempt to weaponize the legal system for personal gain.”

“I remain confident that the facts and the law are on our side,” Northern said. “My legal team will vigorously defend against these baseless claims and continue our work to revitalize the Woodhaven community and contribute positively to Fort Worth’s growth.”

Crain’s suit, filed June 20 in Judge Don Cosby’s 67th District Court, details a bitter falling-out between the business partners, co-founders of the real estate firm Northern Crain Realty. Crain, who also serves on the City Council representing District 3, is suing individually and on behalf of the three companies in which he and Northern each own a 50% stake.

The suit names as defendants Northern, Fort Worth attorney Tyler Goldthwaite, and several business entities the two allegedly formed as part of what Crain claims was a “premeditated and complex plan” to take control of the Woodhaven property without Crain’s knowledge.

Crescendo Development, set up by Northern, acquired more than 160 acres in Woodhaven, including the golf course, on Fort Worth’s east side in a foreclosure auction for $8.5 million in May 2024. On Jan. 7, the Fort Worth City Council approved a Zoning Commission recommendation to rezone 150 acres in Woodhaven for a mixed-use development featuring housing, retail, and green space on the site of the former Woodhaven golf course. Crain abstained from the vote due to his business partnership with Northern.

Crain is seeking $1 million, excluding interest, punitive damages and penalties, and attorney’s fees.

Northern says Crain filed the lawsuit to “interfere” with the long-awaited redevelopment of Woodhaven.

In a statement responding to Northern’s public comments about the lawsuit, Crain’s legal team emphasized that the case is in no way an attempt to undermine the Woodhaven redevelopment but rather a business dispute between Crain and his former partner.

“In fact, Mr. Crain’s claims arise from the success of the development and the alleged improper means by which Mr. Northern sought to benefit from it,” says Avery McDaniel, Crain’s attorney.

The 503-page petition, his team says, outlines what Crain describes as a detailed timeline of alleged misconduct by Northern, with the involvement of Goldthwaite, whom the plaintiff describes as an “attorney for the Northern Crain companies.”

According to the petition, Northern advanced the deal using confidential information, resources, and personnel from the jointly owned Northern Crain companies without Crain’s knowledge or consent.

“Mr. Northern’s attempts to alarm the Woodhaven community are misleading and appear designed to cast himself as a victim, while deflecting attention from the serious allegations regarding his conduct toward a longtime friend and business partner,” says McDaniel.

In his response, Northern denied all allegations and in his counterclaim is seeking specific performance and declaratory judgment. He argues that Crain was contractually obligated to sell his 50% stake in the companies after failing to respond to a formal buy-sell offer Northern initiated last August. Under the company’s operating agreements, failure to respond within 30 days results in an automatic election to sell.

Northern says he followed the prescribed procedure, tendered cashier’s checks totaling more than $82,000, and delivered the necessary documents, but Crain refused to finalize the sale. The counterclaim alleges Crain instead tried to expel Northern from the companies via a one-person meeting, which Northern calls legally void.

“Mr. Crain’s petition contains a number of false allegations. Neither myself nor Mr. Goldthwaite have done anything wrong,” Northern said in his statement, which was prepared with the assistance of his legal team. “This lawsuit is little more than an attempt by Mr. Crain to force himself into a project in which he has invested no effort and no money.”

Northern is asking the court to compel Crain to honor the buy-sell terms and transfer his interests. He also seeks a ruling that Crain’s alleged expulsion was invalid and that Northern’s separate real estate project — the redevelopment of the former Woodhaven Country Club — was not in competition with the businesses they co-owned.

“These companies were formed and operated independently and transparently, with no violation of the governing agreements of the Northern Crain entities,” Northern says.