Delta Community Credit Union confirmed that is has reached an agreement in a breach of contract suit with a real estate developer, who received a judgment earlier this year for $75.4 million.
Both sides have dropped their appeal of the judgment in favor of the agreement. The terms were not disclosed.
The $4 billion Delta Community 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.
Bob Manning, general counsel at Delta Community, confirmed the settlement agreement but could not provide any other details, including when the agreement was reached.
“The only thing we can say is that the matter has been resolved to the satisfaction of both parties,” Manning told Credit Union Times.
The case involving Delta Community and Pearson goes back to 2010 when Pearson, a real estate developer, claimed the credit union 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.
Rather than have a jury trial, Pearson and Delta Community agreed to have a bench trial, which took place from Dec. 14, 2011 to Jan. 9, 2012.
Delta Community had planned to appeal, believing the judgment was not supported by facts or the law, said J.D. Humphries, one of the Atlanta attorneys representing the credit union at the time of the filing.
Manning would not comment on whether there would be any management changes at Delta Community as a result of the recent agreement with Pearson.
“We can’t comment on that or speculate regarding future management changes,” Manning said. “That’s not in our policies to do that. Whether it’s a teller or senior management, we don’t comment on those matters.”