Tara Hills Garden Investors v. Alliant Tax Credit Fund
Published: Apr. 27, 2004 | Result Date: Dec. 10, 2003 | Filing Date: Jan. 1, 1900 |Case number: BC268973 Verdict – $663,497
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Facts
Tara Hills Garden Investors LP was formed in 1998 to develop affordable housing for low-income families. The housing was funded in part by the creation of income tax credits allocated to the project, then sold to an investor who made capital contributions to the project in return. Bay Development Group (Bay) was Tara Hills' general partner in the project. In 1999, Alliant Tax Credit Fund X, Ltd. (Fund X), the investor for the project, did not make the last capital contribution of $486,000. Bay authorized Tara Hills to sue Alliant for the final capital contribution. Tara Hills sued Fund X, Alliant Tax Credit Fund IV, Ltd. (Fund IV), Alliant, Inc. and Alliant Asset Management Company, LLC (AAMC) for breach of contract, breach of fiduciary duty, tortious interference with contract, constructive trust and declaratory relief. Fund X cross-claimed against Bay and Patrick R. Sabelhaus, the former attorney for Tara Hills, for fraud, negligent misrepresentation, breach of fiduciary duty, breach of contract and promissory estoppel.
Settlement Discussions
Alliant made a pre-trial statutory offer in the amount of $500,000. Tara Hills' settlement demands varied, but were in excess of $1 million.
Damages
Tara Hills sought $468,212 in damages on the breach of contract claim for the final capital contribution it claimed Alliant still owed. It also sought $47,285 for interest from its delay in receipt of affordable housing loan proceeds, and prejudgment interest of $148,000. It further sought $355,000 to pay partnership advances allegedly resulting from its non-receipt of the final capital contribution. Alliant sought damages for breach of contract and breach of fiduciary duty on its cross-claim against Bay Development.
Result
$663,497 - augment on hearing by $96,696, for a total recovery of $760,193.
Other Information
Alliant Inc. and AAMC each were dismissed by judgment on pleadings as the agents of Fund IV and Fund X. Certain claims against Fund IV and Fund X including breach of fiduciary duty, tort and punitive damages claims were dismissed before trial, except the breach of contract cause of action to collect the $468,000 sought. After failing to obtain summary judgment in his favor, Sabelhaus settled alliant's breach of fiduciary duty claims against him.
Deliberation
two days
Poll
12-0
Length
three weeks
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