Caruso, General Growth Suit Settled
On Jan. 5 Chicago-based General Growth Properties Inc. agreed to pay a $48 million settlement to Caruso Affiliated, developer of the Americana at Brand retail center in Glendale, Calif.
This settlement brings to an end a long lawsuit in which General Growth, owner of the Glendale Galleria retail center, a neighbor of the Americana, was accused of unfair business practices by the Los Angeles–based Caruso.
In November 2007, Caruso was awarded $15 million in punitive damages and $74 million in compensatory damages. The award for punitive damages was one of the largest in the world of legal proceedings with developers, Larry Kosmont told California Apparel News in 2007. Kosmont is the president of Encino, Calif.–based Kosmont Cos. and an expert in public and private real estate development.
Caruso Affiliated President Rick Caruso was pleased with the final settlement, according to a statement released from his company on Jan. 5. “[It] sent a clear message that proper business ethics will always prevail,” Caruso said.
The suit started in 2004, when Caruso accused General Growth of threatening the Cheesecake Factory restaurant chain after the restaurant showed interest in opening a location at Caruso’s Americana at Brand. General Growth’s Glendale Galleria was said to be courting the restaurant, too.
The Cheesecake Factory signed a 2003 letter of intent to negotiate a lease at the Americana. The restaurant signed an Americana lease in February 2007, but Caruso said the lag in time marred negotiations with other retailers. —Andrew Asch
