HCW wins partial judgment in suit involving city of Branson

HCW Development Co. LLC, developer of the Branson Landing,  secured a partial summary judgment in a case involving the city of Branson. Now, a jury is scheduled to hear other details of the case and determine an award for the developer on the first of two counts of its cross-claim against the city, according to online court records.

HCW CEO Rick Huffman, who was interviewed by phone this morning while in the Phoenix area, said he expects the final award on the judgment to be in the millions of dollars.  

The case was filed in St. Louis County Circuit Court in October 2011, with the defendants listed as Tri-Lakes Title & Escrow LLC, Chicago Title Insurance Co., Fidelity National Financial Inc. and the city of Branson, according to online court records. Huffman said the courts move faster in the St. Louis area, which is why the case was filed there.

The case was brought on by land claims made by Douglas Coverdell and Coverdell Enterprises Inc. on the north end of the Branson Landing – land the city had replotted about a decade ago for the development, Huffman said.

The city received judgments in its favor last year in a pair of suits filed in Taney County by Coverdell, according to Jim Meadows, a Springfield attorney with Poliselli PC who is representing the city of Branson in all three cases. The two Coverdell suits are now being appealed, Meadows said.

On March 5, St. Louis County Circuit Court Judge Barbara Wallace found HCW was entitled to a judgment in its cross claim against the city of Branson for breach of contract. The judge found that when HCW entered in to development contracts, “Branson did not have good and marketable title to the premises,” and is entitled to a judgment on that claim.  

Huffman said since 2008 he’s spent $450,000 a year leasing the land owned by the city, but because of title and insurance holdups, he hasn’t been able to develop on it. In his development agreements with the city, Huffman said HCW is indemnified against the loss of the property.

“The city had indemnified HCW, meaning it would cover any title issues and any expenses in the case. When it didn’t do that, that’s when we sued the city,” Huffman said. “In the development agreements we signed with the city, it was very obvious that we were indemnified. Why the city ignored those agreements is something we’ve always wondered.”

Huffman said legal fees and other related expenses total more than $1 million and he can’t develop the land he’s leasing from the city until it can be insured.

Meadows said it has not been proven that HCW couldn’t develop on the disputed land, and pointed out that the judgment is one that could be amended in the future.

“Our position is much like a plaintiff’s. Both the city of Branson and HCW have claims against Chicago Title,” Meadows said, adding that both the city and HCW are owed indemnity and defense under a title insurance policy.

The issues in the case would be sorted out at trial, Meadows said. A pre-trial conference is now scheduled for April 11, and the jury trial is slated to begin April 21, according to court records.[[In-content Ad]]