The judge in the N-Shea Group, LLC v. The Town of Fountain Hills court case again sided with the Town in the ongoing legal dispute concerning new construction with Park Place. The judge in the case has sided with the Town's arguments for the second time in this ongoing case.
Following an evidentiary hearing on July 27, the Superior Court of Maricopa County on August 9 denied the N-Shea Group's request for a preliminary injunction on the development agreement. The Town and N-Shea Group, LLC and Park Place Properties, LLC, owners and developers of Park Place, agreed to a six-year agreement effective June 17, 2016. The agreement called for the project to be completed in three phases. The contract expired on June 17, 2022. "The Development Agreement states that "[i]n no event shall construction on any Phase commence more than six years following the Effective Date of this Agreement." Ex. 1, § 6.2. The parties agree the Effective Date was June 17, 2016; the Development Agreement therefore required "construction" to "commence" on or before 17, 2022."
The court found the plaintiffs, N-Shea Group, LLC and Park Place Properties, LLC, failed to demonstrate a probability of success on the merits of their claims for breach of contract and breach of the implied covenant of good faith and fair dealing.
The N-Shea Group, developers of Park Place, are still pursuing its claim against the Town for $67 million.