Press Release: City of Alameda: Developer Suncal Loses $100M Claim Against Alameda, February 14, 2012
Developer Suncal Loses $100M Claim Against Alameda
February 14, 2012
United States District Court Judge Charles Breyer dismissed Suncal's claim for $100M against the City of Alameda, which alleged lost profits from potential development at Alameda Point.
Judge Breyer ruled that future anticipated profits could not be recovered under California law because there had been no agreement or approval as to the development plan. He stated that future profits would be speculative since it was not certain that there would have been an agreement on the development plan.
“This decision significantly reduces the potential City exposure in the matter,” said City Attorney Janet Kern. The federal suit will continue as to Suncal’s claims to have spent $17 million on pre-development. “Of course the City will continue to vigorously defend against these claims," Kern said.
The City will file its answer to the Suncal claims next week and the discovery phase of the dispute will proceed on the narrowed issues.