CP III Rincon Towers Receives Favorable Decision in Breach of Contract Matter

May 07, 2013

A judge in the San Francisco Superior Court of California ruled that Analysis Group client CP III Rincon Towers Inc. (Carmel Partners) correctly and rightfully foreclosed on a real estate development project in 2010. In this lending dispute, plaintiffs Rincon EV Realty LLC et al. (Rincon) claimed several contract breaches stemming from the sale of its $110 million loan by Maiden Lane LLC to Carmel Partners after the plaintiffs' failed loan restructuring negotiations following the 2008 housing market crash. Rincon alleged that Carmel Partners disregarded the borrowers' notice to the lender of their election to extend the maturity date of the loan agreement, and that the lender wrongfully asserted default.

An Analysis Group team led by Managing Principal Jeffrey Kinrich was retained by Manatt, Phelps & Phillips LLP to assess damages and rebut Rincon's damages experts. Mr. Kinrich filed reports and provided expert testimony regarding the economic plausibility of the plaintiffs refinancing the loan or renovating the property. Judge Marla J. Miller cited Mr. Kinrich's testimony extensively in her decision, noting that his analysis was "cogent and his testimony ultimately more persuasive" than that of plaintiffs' experts. "His testimony convinced me that Plaintiffs' damages analysis is not credible, and that, even if there is liability on the part of Defendants (which I do not find), the damage analysis results in the conclusion that Plaintiffs suffered no damage on account of Defendants."

Judge Miller found in favor of Carmel Properties on all claims.