SIMI VALLEY : School District Sues Builders Over Dispute
The Simi Valley Unified School District is countersuing two developers it formed a partnership with three years ago, claiming the firms were not straightforward about a legal dispute they had with the city.
In closed session this week, the school board decided to countersue CSA Real Estate Development Inc. and Lederer Development Inc. because they did not reveal information about a pending lawsuit Lederer had against the city over a separate matter. “When we interviewed, they said they had a great relationship with the city,” board member Judy Barry said. “They were not straightforward with us.”
The district entered into a partnership with the firms in 1991, hoping to generate revenue for local schools by developing a vacant site on the corner of Tapo Canyon Road and Alamo Street.
The district and the developers wanted to build a shopping center and houses on the land, but the plan was rejected by the City Council.
The developers filed a lawsuit against the district in May, seeking $4.1 million in damages resulting from a loss of construction and profits because the property was not developed, Supt. Leon Mattingly said.
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