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.