REAL ESTATE : Trammell Crow Pays $7.5 Million to End Lee & Associates Suit

Trammell Crow Co. Inc., the giant Texas developer, has settled its lengthy legal dispute with Lee & Associates, a local brokerage that persuaded an Orange County Superior Court jury last month that Trammell Crow had stiffed it on a commission.

According to a lawyer for Lee, the case was settled this week when Trammell Crow paid Lee $7.5 million. A jury had awarded the brokerage $9.2 million last month. That amount included $6 million in compensation, $2.2 million in interest and $1 million in punitive damages.

Lee settled out of court for the lesser amount rather than face a lengthy appeal.

Trammell Crow, which has an office in Irvine, referred questions to a lawyer, who couldn’t be reached.

The case stems from the 1985 sale of the Fluor Corp. headquarters in Irvine to Trammell Crow and a partner for more than $300 million. Lee brokers alleged that Fluor had agreed to pay the brokerage a commission if they found a buyer.

Lee brokers said they brought in Trammell Crow but that neither company would pay the brokerage a commission and, in fact, Trammell Crow executives instead kept a few million dollars from the deal that should have gone to Lee.

Trammell Crow contended during the trial that it never had an agreement to pay Lee a commission and that the brokerage was merely trying to cut itself in on a deal it hadn’t really worked on.

Lee had also sued Fluor, the giant multinational engineering and construction company.

But Fluor had been excused from the suit in an earlier court ruling. Lee’s lawyer said the brokerage is considering appealing that ruling.