Sullivan Square started out as an unknown project several years ago. The developers started putting out television ads, very artsy targeting the upper middle class. One of its selling points was that the entire community was going to be green and thus eligible for special tax breaks as well as being great for the environment. Last summer the Sullivan Square developer filed suit against its equity partner in the deal, Harcourt Developments, a private company from Dublin, Ireland. The suit was over some $800 million in financing for project.
The case ended up in the Eighth Judicial District Court of Judge Mark Denton. Earlier Judge Denton granted the defendants’ motion to dismiss for lack of jurisdiction on behalf of the individual Irish defendants, along with several of the causes of action in the plaintiff’s first amended complaint (Judge Denton threw out most of the original complaint in December of last year on a technicality). Allegations of conspiracy, negligence, intentional interference and consumer fraud were also dismissed with prejudice. However, he did not grant the motion to dismiss for lack of jurisdiction on behalf of Harcourt being operated by Irish defendants. So some of the causes of action in the amended complaint are being upheld including the crucial one, breach of contract.
Regardless of the outcome of the court case, its doubtful that Sullivan Square will be completed, at least in its original form. Should the case be won by the developer, considering the market downturn, Sullivan Square will not be able to retain the prices they had a few years ago. Buyers looking for a green condo will be forced to reconsider CityCenter.
{ 0 comments… add one now }