Green Bay has a serious problem
The state Supreme
Zima said the lost lawsuit could cost the city up to $12 million, although he didn't explain how he arrived at that calculation.
In condemning the lease and property, the city paid Wisconsin Mall Properties $5.7 million — reportedly $3.1 million for the lease and $2.6 million for the building.
Meanwhile, the city is suing the lawyer who advised it during the condemnation process.
The city claims that Benjamin Southwick of Richland Center failed to correct an appraisal error that led to the $6.4 million judgment against the city and in favor of Wisconsin Mall Properties, the owner of the building.
This article explains how the city council and city attorney were well aware of the risks when the community took an assignment and indemnified a tenant from any liability for breach of its lease with the landlord. The tenant, Saks, Inc., was paid a substantial sum to give up its leasehold interest. As part of the agreement, the community indemnified Saks. This was discussed at an open hearing of the city council.
Well, all the problems came home to roost. The landlord sought the damages and received what may turn out to be up to $12 million dollars for the loss of its tenants by the community's interference with the leasehold relationship.
All that is left are a bunch of lawsuits, with all parties pointing fingers.
It is amazing how otherwise sophisticated individuals can get so lost in the legal process.
