Brookfield Residential Properties Inc. (BRP), a land investor in the U.S., lost a bid for a trial after having been ordered to pay $519,000 to Zephyr Equities & Development LLC in an arbitration for breach of contract, according to statements from the companies and their lawyers.
Zephyr accused Brookfield of violating a contract to develop the 2,000-acre Natomas Project in Sacramento County, California, according to a statement from Zephyr today. An arbitrator ruled in favor of Zephyr in April 2013, and Superior Court Judge Ronald L. Bauer signed a judgment against Brookfield in February, according to the statement.
State court documents in the case weren’t immediately available online.
Bauer denied Brookfield’s request for a new court proceeding and also awarded Zephyr the right to 3.1 percent of gross sales from the Natomas development, Zephyr said. Brookfield has appealed the ruling, the companies said.
“Fortunately, justice has prevailed,” Adina T. Stern, a Zephyr attorney, said in the statement.
Shares of Brookfield fell 4 cents to $20.09 in New York Stock Exchange composite trading at 12:33 p.m.
The case is Zephyr v. Brookfield Natomas, 30-2013-00648089-CU-JR-CJC, Superior Court of California (Orange County).
(An earlier version of this story was corrected to change the damage award figure because the original press release specified $519 million instead of $519,000.)
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