HARLINGEN, Texas- Jury selection began Monday in the first of more than 52 Texas lawsuits claiming that manufactured homes giant Clayton Homes Inc. forged signatures that put up land as collateral for the homes.

Plaintiffs attorney David Rumley said a jury would be selected Monday in San Diego, a small city in rural Duval County. He said testimony would probably begin Tuesday.

The plaintiffs in the suit are seeking damages as high as 10 percent of the net worth of Kevin Clayton, CEO of the Maryville, Tenn.-based company.

Clayton and other family members have a majority interest in the company that was acquired by Berkshire Hathaway Inc. in 2003 for $1.7 billion.

The company has denied wrongdoing.

The lawsuit claims that Texas-based agents of Clayton Homes forged the signatures of Vicente Saenz, Teodulo Saenz, Gloria Saenz Chapa and Agapita Saucedo on documents giving the company the Saenz family's 897-acre ranch should another family member default on the loan of a manufactured home on the property.

The documents were allegedly signed in 2001. But Gloria Saenz Chapa died in 1993 and Saucedo, whose name was signed incorrectly on the documents as Agapita Saenz, died in 1999.

"Clayton Homes has been unable to explain to me how a dead person can somehow rise from the grave and sign these documents," Rumley said.

Saenz family members said they found out about the forgeries when the company began foreclosure proceedings after a relative fell behind on payments.

Other plaintiffs in the case, Wally and Imelda Gonzalez, purchased a share of the Saenz land in 1994 and now find their title in question.

Rumley said that this and other lawsuits were the result of Clayton's unique "land in lieu of" financing option guaranteeing buyers loans for their homes as long as they brought in a deed.

"The marketing scheme literally had ads throughout the state saying 'Bring us any deed to anyone's land and you're approved,'" Rumley said.

But Clayton says its policy helps people buy homes.

"As a family of companies, we go to great lengths to manufacture and deliver a great value in affordable housing," Chris Nicely, Clayton's vice president for marketing, said in a statement. "We are proud to have helped many families in achieving home ownership over the past 40 years."

Clayton Homes and its subsidiaries operate 32 manufacturing plants, sell products through 390 company-owned lots and 1,400 independent dealers, and manage 83 manufactured-home communities. Clayton also provides insurance policies for 135,000 families and mortgages for more than 400,000 customers.

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