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Whitney Houston: New Legal Trouble

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Dec. 17 2008, Published 10:37 a.m. ET

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Whitney Houston's stepmother is suing her--over the wishes of the singer's late father.

According court records, Barbara Houston claims the 45-year-old singer improperly kept the proceeds from John Houston's $1 million insurance policy after he died in 2003.

The lawsuit, filed in Newark, NJ,  says Whitney was supposed to use the $723,000 to pay off the mortgage on her father's Fort Lee condominium--where her stepmother still lives. Whitney, who holds the mortgage to the condo, was then supposed to return the remaining insurance money to her stepmother.

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Lawyers for Whitney Houston and her stepmother declined to comment.

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