Widow of Enron Founder Comes to Agreemant With Neighbors

The widow of Enron Corp. founder Kenneth Lay has reached an agreement with neighbors in her upscale Houston high-rise over a lawsuit that claimed she didn't pay more than $109,000 in building dues.

Attorneys for both sides jointly filed a motion in federal court Tuesday to dismiss the suit, saying Linda Lay had paid all amounts due to The Huntingdon.

The suit was originally filed in January by the Huntingdon Council of Co-Owners.

The motion asks the judge to dismiss the lawsuit without prejudice "in the event a future default." Linda Lay's assessment was based on ownership of nearly 3 percent of the 34-story building, the Houston Chronicle reported. Besides a 12,827-square-foot condo on the 33rd floor worth more than $4 million, she also has 10 parking spaces and four storage units, the lawsuit said.

Linda Lay is also fighting an attempt by the federal government to seize nearly $13 million from her husband's estate, including the family condominium at The Huntingdon.

Kenneth Lay was convicted in May 2006 of 10 counts of fraud, conspiracy and lying to banks in two separate cases, but the convictions were vacated because of his July 2006 death from heart disease.

Enron, once the nation's seventh-largest company, crumbled into bankruptcy proceedings in December 2001 when years of accounting tricks could no longer hide billions in debt or make failing ventures appear profitable.