Edmond Developers Deny Breach-of-Contract Claims

Article excerpt

Edmond developers Michael R. Prescott and Michael B. Garrett have denied breach-of-contract claims by an affiliate of Tulsa's St. John Health System.

The defendants claim they had already resigned from that contract before the questioned time.

Utica Services, an arm of the St. John Medical Center, filed its Tulsa County District Court breach-of-contract lawsuit against the duo on Feb. 15 over the 2008 operating agreement behind Broken Arrow Development LLC. That firm built St. John's $80 million, 180,000- square-foot Broken Arrow hospital and its neighboring office building.

St. John Health System bought that complex in 2012, two years after it opened.

That lawsuit was the second one Utica Services filed against Broken Arrow Development, or BAD, of which the plaintiff actually is a member. In October Utica Services won a $12.2 million default judgment after foreclosing on a 2009 mortgage over undeveloped commercial land surrounding the Broken Arrow hospital.

In its breach-of-contract lawsuit, Utica Services alleged that the 2008 agreement required the defendants, as BAD's managers, to keep its business and financial records in Tulsa County. It claimed that Prescott and Garrett maintained those records in Oklahoma County and intentionally denied Utica Services, or USI, the ability to review them.

While Prescott and Garrett acknowledged the operating agreement in Wednesday's filing by Andrews Davis PC attorney David Pomeroy, the defendants claimed they had resigned from BAD "prior to the relevant times referenced in the petition." In their response, they claim that David J. Pynn and William E. Weeks actually managed BAD during the lawsuit's questioned period.

The defendants did not specify when they actually resigned. The only specific time referenced in the original Utica Services petition is the 2008 operating agreement. …

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