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A Clay County judge confirmed an arbitration award worth more than $8.7 million with interest that stemmed from a soured real estate partnership.
Metron LLC and NKC Lofts LLC formed a limited partnership to acquire the historic Park Lofts building on Armour Road in North Kansas City in 1997. They converted the building to low-income residential housing, which was able to receive tax credits.
Metron and NKC Lofts brought other investors into the project, including James Watson and several entities that he owned. Watson essentially became a general partner in the investment.
The developers planned to convert the building to market-rate units when the tax credits expired and sought to acquire interests in the property from Boston Capital, a limited partner that had provided significant capital for the development.
In a lawsuit filed in Clay County Circuit Court in 2016, Metron and NKC Lofts alleged that Watson had been communicating directly with Boston Capital without their knowledge so that Boston Capital could acquire the property. The suit alleges that Watson made false representations about the terms of sale and financial information involved in the deal, and that he pressured his partners into listing all the property in his name to complete the transaction by the end of 2015. After he allegedly reneged on an agreement to restore their interests, Watson was left as the primary owner of the building.
The suit made claims of breach of contract, breach of duty and fraud. The case went to arbitration in 2022, resulting in an award of $5.34 million. Judge Shane Alexander confirmed the arbitration award and added $3.38 million in interest from the Dec. 31, 2015, sale date. According to court records, the judgment has been satisfied.
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$8.72 million judgment
Real estate
Breakdown: $5,340,000 arbitration award, $3,380,000.52 in prejudgment interest
Venue: Clay County Circuit Court
Case Number/Date: 16CY-CV04531/Jan. 12, 2023
Judge: Shane Alexander
Mediators: Leland Shurin, Philip Krause and Richard McLeod
Caption: Metron LLC and NKC Lofts LLC v. James R. Watson and Northland Lofts LP
Plaintiffs’ Attorneys: Jerome E. Brant, Travis A. Wymore, Landon W. Magnusson and Larry D. Harman, Withers, Brant, Igoe & Mullennix, Liberty; Brian Smith, Smith Law Group, Shawnee, Kansas
Defendants’ Attorney: Andrew W. Funk, Funk Riemann, Kansas City
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This article was originally published by a molawyersmedia.com . Read the Original article here. .