LOS ANGELES-A U.S. District Court has ruled that developer Alan Casden does not owe money to a former partner in a dispute over an alleged loan default.
The U.S. District Court for the Southern District of New York decided that Casden does not owe $12 million to Madeleine LLC, a subsidiary of Cerberus Partners LP. The suit is part of a long breakup between the former partners.
The case dates to 2002, when a joint venture between Madeleine, Casden Properties LLC and Denver's Apartment Investment and Management Co. Inc. agreed on a complex joint venture deal. Casden allegedly agreed to give up proceeds from half of his 20% stake in the joint venture in exchange for a $25-million loan.
The joint venture planned developments in Los Angeles and Ventura counties, but were derailed by the recession. Cerebus and Casden split in 2011, but Cerberus claimed the undeveloped properties of the joint venture and sold them. The properties include the Movietown project in West Hollywood and land that has a Ross Dress for Less near the Grove shopping center.
The case was initially filed in March of last year and went to a two-day bench trial in late April of this year. It was tried before U.S. District Court Judge Katherine B. Forrest.
"This case stemmed from a complex series of transactions and negotiations, and we're pleased that Judge Forrest carefully reviewed all of the background details and ultimately ruled in favor of our client," said Manatt Phelps New York litigation partner Kenneth D. Friedman, who issued a statement as a member of the trial team.
Robert H. Platt of Manatt Phelps, Casden's attorney in Los Angeles, tells GlobeSt.com that Casden will not seek to reclaim the properties. He said he has no knowledge of plans for an appeal by Cerberus.
A call for comment to Cerberus was not immediately returned.
As previously reported by GlobeSt.com, a joint venture between Casden Properties and PCCP.IPA sold Empire Landing, a large multifamily complex in Burbank.
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