Butterfield Unit Sues Partner in Brea Deal

A subsidiary of troubled Butterfield Savings & Loan Assn. of Santa Ana has filed a $19-million lawsuit against its partner in a joint venture, claiming the partner breached a contract and fraudulently concealed side contracts it awarded in the proposed development of an 11-acre office and hotel site in Brea.

Butterfield Venture Corp. claims in its Orange County Superior Court suit that Imperial Development Co. of Newport Beach and the company’s owners, Richard J. Johns and Peter L. Drino, also failed to provide their half of the joint venture’s capital.

Neither Drino nor Johns could be reached for comment Thursday.

Butterfield S&L;, with assets of $802.6 million as of June 30, was declared insolvent and taken over by federal regulators Aug. 7. It was turned into a federal S&L; and now is being operated under a management contract by Downey Savings & Loan Assn. of Costa Mesa.

The joint venture, called Imperial Centre Venture, was formed to develop a hotel, research and development office buildings and other structures at what is called Imperial Centre West. A separate and unrelated developer is involved in the adjacent Imperial Centre East, where a bowling alley, gymnasium and other office buildings are to be built.