Cases will proceed separately as City Council meets Tuesday to weigh partial settlement
The judge overseeing the city of San Diego’s two lawsuits over disputed lease-to-own agreements for the 101 Ash St. high-rise and Civic Center Plaza upheld his tentative ruling from last week and declined to combine those lawsuits with an outside case.
Consolidating the cases — two of which the city filed as plaintiffs, and the third of which names the city as a co-defendant — “will not be in the interests of justice,” the judge added. Lawyers for San Diego sought to combine the two cases the city filed against entities created by Cisterra Development, its lender, CGA Capital of Maryland, and real estate broker Jason Hughes with the Gordon claim.“The reason it’s necessary is simple: Think about the possibility of inconsistent verdicts in this case,” argued attorney Dick Semerdjian, a private lawyer hired by the city to prosecute the city’s cases and defend the Gordon suit.
Gloria said the settlement was negotiated over 18 months and is the best path forward for taxpayers because it provides the city certainty in its future real estate planning and avoids what he said could be five to eight more years of litigation.
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