A couple has filed a lawsuit against the estate of Dr. Richard Morgan regarding property rights. Richard Morgan was the father of Chico Mayor Sean Morgan, who’s also named in the suit.
Peggy Sue Davis and her husband, Stephen Davis, purchased a property on Coyote Way in Chico at a public auction on Oct. 9, 2013, intending to sell it later. They allege they have been prevented from doing that because of irregularities involving the property’s previous owner, True North Constellation, according to their suit.
The Davises are seeking a judgement that they are the owners of the property and to establish that the Morgans have no interest in the property that conflicts with theirs.
The property was originally obtained by Richard Morgan on April 18, 1996, to fulfill a $34,000 debt incurred by previous owner Donald R. Williams. A deed of trust was filed on the property on Sept. 18, 2003, for $50,000 between Richard Morgan and True North Constellation.
True North Constellation was one of two Nevada corporations created by Richard Morgan and his business associates for illegitimate purposes, the Davis' suit claims. The corporation’s supposed purpose was to obtain phony deeds of trust on Morgan-owned properties with the dollar amounts on the deeds almost always exceeding the actual value of the lands involved. True North Constellation’s corporate standing was revoked June 30, 2012, according to court records.
Peggy Davis had also once been the patient of Richard Morgan, who performed surgery on her that lead to severe damage. A lawsuit filed against Dr. Morgan was decided in her favor.
Because Richard Morgan had no malpractice insurance at the time, recovering the money took awhile. Davis asked for a writ of execution on April 4, 2013, that instructed the sheriff to sell the Coyote Way property at a public auction.
The Morgans have not responded to the lawsuit, which was filed in July.
-- Orlando Colbert