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Company sues over canceled sale of state buildings

March 11, 2011 |  4:09 pm

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.

"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