Frost Bank $30M Fraud Suit Pushes Clash Over Arbitration

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Defense Strikes Back: Arbitration Mandated

McKeever countered in his brief that Chemcraft cannot dodge arbitration. He noted that Texas courts have already directed Chemcraft to arbitrate its disputes with Frost entities.

“Chemcraft is trying to end-run that ruling by suing McKeever in federal court,” his filing said. “Collateral estoppel bars this relitigation, and in any event, the claims are independently arbitrable.”

He further pointed out that disputes over Sturdi’s ownership and Frost accounts were previously settled in state court, where Chemcraft released certain claims. Following appeal, the Fort Worth Court of Appeals in March 2025 ruled arbitration clauses in account agreements covered “all claims and parties.”

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A Family Trust in the Crosshairs

Founded in 1973 by Gilroy McAlpine, Chemcraft was folded into the Gilroy McAlpine Family Trust in 1995, with the intent of preserving assets for his adopted children in South Africa. The lawsuit argues that Gilroy’s U.S.-based relatives exploited his death to divert funds, conceal misappropriation, and frustrate oversight by the South African parent company.