Maybe this will give you hope as to what Judge Pantle is capable of ordering, just for blocking an alley in a construction site, and awarding based financing problems created , and increased costs created. I still believe she is close to ordering something similar but for a far greater amount! Keep the faith brothers and sisters!
The developer of the Ritz-Carlton Residences on North Michigan Avenue has won a $36.4 million judgment against the Metropolitan Water Reclamation District of Greater Chicago in a dispute over the alley between the condominium tower and the agency's headquarters.
Cook County Circuit Court Judge Kathleen Pantle on Jan. 4 ordered the district to pay Chicago-based Prism Development Co. the money after ruling that the district wrongly blocked Prism's access alley for about three years, delaying construction of the luxury Ritz tower and boosting Prism's costs. The developer had sought about $66.5 million in damages.
The judgment, if it stands, resolves one of two big legal battles for Prism, which remains locked in a bitter dispute that's preventing buyers at the Ritz from moving into their new condos. Tiring of the wait, some buyers have even sued to get their deposits back.
The alley at the heart of the dispute separates the Ritz, at 664 N. Michigan Ave., from the water district's headquarters to the west, at 100 E. Erie St. Prism needed access to the alley during the construction phase of the Ritz building. Judge Pantle wrote that the water district, which owns the alley, kept Prism out with a locked gate, even though the developer had an easement to use the alley.
“Although the court didn't award all that we sought, it is a significant award which will help compensate the client for its considerable losses,” said David Gustman, partner and head of the litigation practice group at Chicago-based Freeborn & Peters LLP who represented Prism.
The water district said it plans to appeal the order, disputing the judge's ruling that the easement dispute delayed the project.
The district “believes the Circuit Court of Cook County erred in its decision. There was overwhelming evidence presented showing that the developer and its partners had no legitimate expectation of beginning demolition and construction work for their proposed upscale residential property development in March 2007, which is a major basis of its claim for damages.”
Yet Prism is in a strong position should the water district file an appeal with the Illinois Appellate Court, said Glenn Udell, partner at the Chicago-based law firm Brown Udell Pomerantz & Delrahim Ltd. who is not involved in the litigation.
Judge Pantle's declaration, for example, that the water district interfered with Prism's access to the alley are now facts in the case, making them “difficult to get reversed on appeal,” Mr. Udell said. “And, according to her opinion, (the water district) didn't put in any credible evidence to dispute the damage calculation.”
He said that while disputes over easements aren't uncommon in a dense area like downtown Chicago, most times the cases are resolved with injunctions or even out of court.
“For something to get this far is pretty atypical,” Mr. Udell said.
Nearly $25 million of the amount Judge Pantle awarded Prism relates to a $137.5 million loan the developers obtained from the German financial institution known as Helaba.
In March 2010, the lender declared the loan out of balance after determining Prism couldn't finish the building without additional financing, according to Judge Pantle's order. That forced Prism to borrow another $28.2 million through a mezzanine lender, which is not named in the order.
Judge Pantle also awarded Prism about $5.4 million due to increased construction costs.
One of Prism's expert witnesses, Michael LoGiudice, managing director in the Chicago office of CBIZ Valuation Group LLC, testified that work on the Ritz-Carlton building could have started in March 2007 had the water district not blocked the alley, according to the order. Instead, the project started in September 2008, a month after Judge Pantle issued a preliminary injunction ordering the water district to allow Prism access to the alley.
The water district sued Prism in 2006 in a dispute about the alley. Prism filed a countersuit in July 2008, winning the preliminary injunction allowing it access to the alley. Mr. Gustman said. It won a permanent injunction in May 2009. The trial over damages lasted from August 2009 to last February, he said.
