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Abandoned retail project sparks business lawsuits

On Behalf of | Jul 20, 2020 | Business Litigation |

Large retail projects are big business in Southern California. Once they are open, they are expected to be a boon to the community in many ways with foot traffic, shopping, dining, entertainment and more. It is easily forgotten that a significant amount of time and money goes into planning and building. Cities, developers, construction companies, contractors and sub-contractors all take part and seek to profit financially and personally. When there are agreements in place and the deals come undone, a business lawsuit is possible for those who claim to have been harmed to recover compensation.

A planned outlet mall that was abandoned has led to a series of legal filings. The latest is by a sub-contractor seeking $1.25 million. This is the second lawsuit related to this project. In the first, the developers sued Carson for $80 million. The city of Carson is accused mismanagement and financial errors that severely damaged the feasibility of the project and led to its downfall. The group that is facing these accusations is known as Cam-Carson and joined two companies, one a major mall developer, to build this outlet mall. The sub-contractor is a steel company. It says it did more than $1.2 million worth of work and was never paid.

The mayor of Carson says the companies are at fault for claiming the current national health situation for economic misfortune and failing to live up to their contract. The mall was 556,000 square feet. The land had previously been tied to attempts to build a stadium for a National Football League franchise, but these never came to fruition. The mall developer had also had a prior agreement to merge with a mall operator for $3.6 billion and is trying to terminate it. The city says the mall operator simply does not want to pay what it owed and is using economic factors as an excuse.

When there are agreements on major projects between cities and developers, it is frequently the smaller entities hired to perform work on said project who get caught in the middle. The steel company has not been paid for its work adding to the litany of legal filings and accusations flying back and forth between Carson and the mall developers who sought to back out of this deal. When handling these complex business law issues, companies large and small should be cognizant of their rights to recover what they have lost. If there is a breach of contract, financial misdealing, partnership problems or any other disagreement, having legal assistance may be essential to address the issues and seek a resolution whether that is through business litigation or negotiation.