An office building owner has sued the developer responsible for a $1.6 billion dollar redevelopment project currently underway in a downtown Boston neighborhood, according to local business news. Florida property owners understand how vital revenue generated by rent can be. The development company is currently being sued for breach of contract because of an alleged failure to pay rent, as well as attempts to entice tenants to move to a different building.
Quince Limited Partnership owns a number of buildings in the Quincy Center, where the development is taking place. Their complaint claims the developer, Hancock Adams Associates, owes over $12 million to Quince -- the price the parent developer agreed to pay for the building in contention. The lawsuit was filed back in June.
The redevelopment project has since been put on hold pending the outcome of the lawsuit. According to representation for the developer, an agreement has been signed but is awaiting funding to be put into practice. This agreement will presumably address the payments Quince Limited says Hancock has defaulted upon since May of this year.
Honoring business agreements is a vital part of the American financial and business landscape, as Florida owners are well aware. A breach of contract, no matter how justifiable, can be actionable in a court of law. In this case, a settlement will likely require Hancock to pay back, or agree to a payment plan for, the amounts still owed to Quince Limited, possibly including interest post-dated to the date of default. It is in this way that the American business model continues to operate and thrive.
Source: patriotledger.com, Quincy Center developer accused of breach of contract, Ronan The, Nov. 22, 2013