CHARLESTON — A hotel developer who purchased the former Sears property that is part of the Charleston Town Center is suing the city and mall owners for breach of contract.
Hull Property Group; Charles WV Mall; U.S. Bank National Association; C-III Asset Management; the city of Charleston and Tony Harmon were all named as defendants in the suit.
Quarrier Street LLC claims since purchasing the property, it has worked diligently toward revitalization and development of the downtown area and had a plan to build and operate a hotel on the former Sears property, according to a Feb. 14 complaint filed in Kanawha Circuit Court.
Quarrier claims it has negotiated extensively with the former Charlestown Town Center owner and entered into a contract that provided for the demolition of the building.
However, after purchasing the property and investing the time and money into planning, engineering, negotiating and signing the contract, as well as retaining the demolition and construction contractors, Hull Group has interfered and has caused Quarrier to be unable to proceed further with the project, according to the suit.
"Plaintiff wants nothing more than to begin demolition of the former Sears Building — as is its legal right," the complaint states. "However, the city of Charleston has refused to issue a demolition permit, citing an unwritten and informal policy which allows the adjacent property owner — Hull Group — to veto Plaintiff's property rights and development plans."
Quarrier claims Hull has no interest in assisting or encouraging economic growth and development in Charleston and has only served as an impediment to progress, while Quarrier wants to create new jobs and business in the city.
"Despite the staggering number of tenants at the Town Center who have closed their doors, Hull Group continues to intentionally interfere with Plaintiff's property rights and development plans," the complaint states. "Hull Group seems content to bury its heels and head in the sand at the expense of Plaintiff and City taxpayers."
The lawsuit claims the previous mall owners did not inform Hull of the deal when it purchased the mall in 2021.
"If the former mall owner did indeed fail or refuse to provide the binding contract to the Hull group — despite knowledge and clear language conveying this obligation — then the former mall owner may have failed to bind its successor in interest, thereby violating its duties and obligations under the contract," the complaint states. "Through breach of its contractual obligations and its duties, the former mall owner has further breached the covenant of good faith and fair dealing with Plaintiff."
Quarrier claims the defendants are breaching the contract, are negligent and are committing fraud.
Quarrier is seeking compensatory damages, a writ of mandamus or injunctive relief, punitive damages and all contractual damages. It is represented by Isaac R. Forman and Kayla S. Reynolds of Hissam Forman Donovan Ritchie in Charleston.
The case is assigned to Circuit Judge Maryclaire Akers.
Kanawha Circuit Court case number: 22-C-128
