Epicenter Partners, LLC , Gray Meyer Fannin, LLC v. Northeast Phoenix Partners, Desert Ridge Community Association, NPP CityNorth, LLC
Published: Sep. 4, 2010 | Result Date: Jul. 27, 2010 | Filing Date: Jan. 1, 1900 |Case number: LC-2007-000011 Verdict – $110,659,000
Court
Maricopa Superior
Attorneys
Plaintiff
Michael D. Kibler
(Kibler, Fowler & Cave LLP)
Defendant
Experts
Plaintiff
Dwight J. Duncan
(technical)
Facts
In 2004, plaintiff Gray Development Group acquired a 41-acre parcel of land located in a master planned community called Desert Ridge at a state auction for $32 million. The land was located in the heart of the community, directly across the street from a high-end shopping mall and the master developer's planned $1.8 billion CityNorth mixed-use development project. Defendant Northeast Phoenix Partners, an entity controlled by The Thomas J. Klutznick Company of Chicago, was the master developer of the Desert Ridge community and the developer of the neighboring CityNorth project.
Gray Development Group sued Northeast Phoenix Partners, alleging breach of contract, breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, and tortious bad faith breach.
Contentions
PLAINTIFF'S CONTENTIONS:
Plaintiffs contended that Northeast Phoenix Partners attempted to delay and ultimately scuttle Gray's real estate development project. Plaintiffs contended that Northeast Phoenix Partners abused its powers as master developer to block Gray's development efforts between 2004 and 2007 in order to protect its neighboring CityNorth development.
Plaintiffs presented documents and testimony which allegedly showed that the Klutznick organization leveraged its close relationship with a prominent Phoenix City councilwoman, who was a vocal supporter of the controversial $97.4 million tax rebate for the CityNorth project, to block Gray's zoning case.
Plaintiffs also presented documents and testimony which allegedly showed that the Klutznick organization orchestrated an aggressive behind-the-scenes campaign to manufacture community opposition to Gray's apartment project. Plaintiffs also presented evidence that allegedly showed that the Klutznick organization abused its complete control over the Desert Ridge Community Association to benefit their CityNorth project at the expense of Gray.
DEFENDANT'S CONTENTIONS:
The defense argued that Northeast Phoenix Partners actions were consistent with their obligations under the terms of the contract and that Gray's damages model was inappropriate in light of the recent collapse of the Phoenix real estate market.
Damages
Gray Development Group sought lost profit damages in the amount of $110,658,800.
Result
The jury found in favor of Gray Development, awarding it $110,658,800.
Other Information
FILING DATE: January 2007.
Deliberation
three hours
Poll
10-0
Length
six weeks
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