McCarthy & Allen Madison County Attorneys
We offer flexible appointment hours.

Local: 618-307-4099

Toll Free: 888-847-9322

Developer sues for millions in breach of contract claim

Vacant buildings dot Illinois urban landscapes as many others do in cities throughout the nation. Such structures can become eyesores if left unattended for extended periods of times. A developer in another state had plans to renovate a particular building and bought it from a city in another state. The same developer has since filed a lawsuit, however, claiming that city officials committed a breach of contract

The $600,000 deal apparently included a contingency that required the city to lease back 14,000 square feet of the building once the developer purchased it. The developer was planning to convert the structure into commercial spaces, as well as private apartment dwellings. The city was reportedly planning to use its rented sections for a visitor's center, economic development office and a cultural affairs department.

The developer is seeking more than $3 million in damages, alleging that the city never made good on its end of the deal. Supposedly, a city manager, as well as two interim city managers were involved in the drafting of the agreement. It is not the first time the city, located in Virginia, has been sued.

To help prevent a breach of contract in Illinois, an experienced business and commercial law attorney can provide clarification of all terminology within a  prospective agreement. It's also crucial to make certain all  parties understand the inherent obligations and responsibilities that will become enforceable by law once a contract is executed. Anyone facing a contract-related problem can request consultation with a business attorney to determine how best to rectify the situation in a timely and cost-effective manner.

Source: wtvr.com, "Developer files lawsuit against Petersburg for breach of contract", Wayne Covil, March 9, 2017

No Comments

Leave a comment
Comment Information