In a breach of contract suit involving several commercial real estate properties, Delta Community Credit Union said it has reached an agreement with the plaintiff who had received a judgment earlier this year for $75.4 million.
According to information obtained by Credit Union Times Sunday, both sides have dropped their appeal of the judgment in favor of the agreement. The terms were not disclosed.
The $4 billion Delta Community CU in Atlanta and David R. Pearson, the plaintiff, are prohibited from sharing any details about the agreement only saying the matter has been settled to the satisfaction of both parties.
A comment from Delta Community was not immediately available.
The case goes back to 2010 when Pearson, a real estate developer, claimed that Delta Community backed out of a $30 million deal that would have allowed him to purchase several properties along Florida’s Gulf Coast from lenders that wanted to sell them.
Pearson said the credit union’s breach came about when it deprived him of funds to finalize the acquisition of two properties, according to the lawsuit. He said $100 million had already been invested in NatureWalk, a Florida community of 278 single-family lots. According to the suit, 220 of those lots had been developed.
Through a negotiation, Pearson agreed to buy the property’s note for nearly $8 million. He claimed Delta Community blocked the transaction. Superior Court Judge Robert Flournoy agreed, according to the judgment.
For his losses, Flournoy said Pearson was entitled to $54.9 million on NatureWalk and nearly $20 million for other properties and attorney fees.
At the time of Pearson’s filing, Delta Community vowed to appeal saying it had enough evidence to prove the $75 million judgment approved for Pearson was unwarranted.