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Politi-Cal

Company sues over canceled sale of state buildings

By Patrick McGreevy
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A company that was going to buy several California office buildings has sued the government, alleging its contract was breached when Gov. Jerry Brown ordered the sale canceled last month.

California First LP, the winning bidder to purchase 11 buildings during former Gov. Arnold Schwarzenegger’s term, filed the suit in Los Angeles County Superior Court, saying state officials failed to perform their obligations.

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‘The state ... has no right to back out of the deal,’ said Stuart Liner, an attorney for the firm.

The state was going to sell the buildings in Los Angeles, Oakland, San Francisco and Sacramento in a deal worth $2.3 billion, then lease them back. The new administration decided the scheme wasn’t worth it.

Eric Lamoureux, acting deputy director of the Department of General Services, said the suit had no merit and called it ‘frivolous.’

-- Patrick McGreevy

Politi-Cal
Patrick McGreevy

Patrick McGreevy covered the California Legislature out of the Sacramento bureau until 2021. He joined the Los Angeles Times in 1998 and worked in the City Hall and San Fernando Valley bureaus, writing about subjects including Valley secession, LAPD reform and city government during the administrations of Mayors Richard Riordan, James Hahn and Antonio Villaraigosa. He is a native of San Diego and a graduate of San Jose State University.

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