Facts

HCR Moorpark Investors, LLC owned 3800 acres of unimproved real property in the City of Moorpark. North Park Communities LLC entered into an Option Agreement with HCR, guaranteed by Forstar LLC, to purchase the Moorpark Property. North Park submitted a development proposal to the City to build 1,500 homes on the Moorpark Property, as well as establish a 2,000 acre open-space preserve. The Option Agreement allowed North Park time to obtain the necessary land use entitlements through an election process because voter approval was required prior to approval of the project. Entitlement efforts were unsuccessful in 2006 when the proposed development plan was rejected by the voters of the City of Moorpark. After the election, North Park sought to terminate the Option Agreement.

CLAIMANT'S CONTENTIONS:
HCR contended that North Park failed to properly terminate the Option Agreement and therefore failed to limit North Park and Forstar's payment obligations and were also liable for all payment obligations in the Option Agreement.

RESPONDENT'S CONTENTIONS:
North Park and Forstar contended the Option Agreement terminated on its own terms and that no further payments were required. Respondents further asserted that HCR was not damaged.

Result

Award to HCR on all damage claims in the total sum of $26,816,992 plus daily interest.

Other Information

FILING DATE: Oct. 2, 2006.