Yesterday, a federal court judge dismissed fraud claims against former Interim City Manager Ann Marie Gallant, in a lawsuit against the City of Alameda over the city’s termination of SunCal as the master developer for Alameda Point. The case is 10-cv-05178-CRB in the United States District Court for the Northern District of California.
Yesterday, Judge Charles R. Bryer issued an order granting Ms. Gallant’s motion to dismiss SunCal’s fraud claims against her in the case, without prejudice; SunCal has 20 days to amend the claims with something more substantive.
In their motion to dismiss the fraud claims, attorneys defending Gallant argued that “as to each instance of alleged fraud, Plaintiff [SunCal] has failed to allege facts in support of one or more of the require elements for fraud” and that Gallant was shielded from liability because she was not show to be motivate by corruption or actual malice. Additionally, Gallant’s attorney’s argued that SunCal’s claim for damages is barred by a clause in the Exclusive Negotiation Agreement – the agreement that the City of Alameda signed with SunCal regarding the development of Alameda Point – that waived damages in the event of the collapse of the agreement.
The case is likely to drag on into the new year as the court considers the matter of SunCal’s claim for liquidated damages from the City of Alameda.