Developer's claim against Ganim heads to trial
Waterbury Superior Court Judge Barry Stevens rejected a request to dismiss the claim, paving the way for a trial in February, said William Sweeney, attorney for developer Alex Conroy. Conroy had planned to develop Steel Point, a 50-acre waterfront site.
"It's huge," Sweeney said Wednesday. "We're very happy with the judge's decision and we look forward to a trial."
The lawsuit could expose Ganim, the city and other defendants to a large claim if successful.
But Craig Raabe, the city's attorney, noted that the judge did agree to dismiss some claims against the defendants, including negligence by the city for failing to prevent Ganim from carrying out the plan. The judge also suggested the defendants could file a different type of request to prevent Conroy from pursing the lost profits claim, a move the city plans to pursue, Raabe said.
The city, which is still trying to develop Steel Point, last month agreed to transfer the site to another developer for a $1.2 billion project that would include thousands of housing units, a hotel, marina, shops, restaurants and night clubs.
The lawsuit will not affect the current plans for Steel Point, Raabe said.
Conroy contends Ganim and his associates conspired to sink his $1 billion development plans for Steel Point and give the property to another developer. City officials have said Conroy failed to meet his commitments to develop the project.
Ganim is serving nine years in prison after he was convicted in 2003 of federal corruption charges in a scheme that also sent his associates to prison.
The lawsuit contends the city broke a 1998 agreement with Conroy's company, Bridgeport Harbor Place, to develop Steel Point because Ganim had a secret plan to replace the company with United Properties. Alfred Lenoci Sr. and Alfred Lenoci Jr., who ran United Properties and were convicted in the scandal, had agreed to pay bribes to Ganim, the lawsuit says.
The city says the agreement did not contemplate liability for lost profits, while other defendants said the claim was too speculative. But the judge ruled on procedural grounds, agreeing with Conroy that under the law one part of its claim for damages cannot be dismissed separately from the rest of the claim.
He did grant a request by the Lenocis and others to dismiss a statutory theft claim.
Ira Grudberg, attorney for Lenoci Sr. and United Properties, said he would challenge the profit loss claim in another motion.
"We still claim and will claim under other procedural devices that it's too speculative to go to a jury," Grudberg said.
Telephone messages were left for attorneys for the other defendants.
Conroy originally filed a federal lawsuit that was dismissed on federal grounds and refiled in state court without the federal claims, Sweeney said.
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