Partners in 90-Acre Development Go To Court

FARMINGTON HILLS, MI-A lawsuit is brewing in Oakland County Circuit Court surrounding the planned redevelopment of up to 90 acres at the intersectionof Orchard Lake Road, Northwestern Highway and 14 Mile Road. Grand Sakwa Properties of the city and Malan Realty Investors of Bingham Farms, MI are locked in a dispute about paying for the development. The case will soon go before Circuit Court Judge Rudy Nichols, says William J. McKenna of Foley & Lardner, Malan’s attorney. He tells GlobeSt.com that a date has not yet been set for the case.

Grand/Sakwa filed suit June 27 seeking a judicial declaration that the joint development agreement signed by Malan and Grand/Sakwa concerning the redevelopment is unenforceable. Malan filed its answer to that claim denying Grand/Sakwa’s contentions. It also filed a counterclaim seeking specific performance of the agreement, alleging breach of contract and claiming a breach of duty by Grand/Sakwa to negotiate in good faith.

“We do not believe Grand/Sakwa’s suit has merit and Malan has responded accordingly,” says McKenna. “Malan has demonstrated its willingness to go forward with this project by placing $9 million of its funds in escrow, which it had received from refinancing one of its properties.”

Grand/Sakwa’s attorney, Peter Alter of Detroit-based Honigman Miller Schwartz and Cohn, did not return phone calls about the case.