Excerpt:

A federal judge has prevented SunCal Companies from recovering $17 million in what it claimed was out-of-pocket expenses spent on preparing to redevelop the former Alameda Naval Air Station, limiting the company's lawsuit to the $1 million initially deposited with the city.

Judge Charles Breyer's decision, announced Monday, follows his January ruling to dismiss SunCal's bid to recoup what it claimed was $100 million in lost profits when the redevelopment deal fell through.

SunCal representatives maintain the city violated the terms of an exclusive negotiating agreement by acting in bad faith, alleging that former Interim City Manager Ann Marie Gallant wanted to have the city itself become master developer of the former base, now known as Alameda Point.