Newspaper article THE JOURNAL RECORD

Judge Ponders Wide Gulf in Proposed Bonds for Tulsa's ARCO Building

Newspaper article THE JOURNAL RECORD

Judge Ponders Wide Gulf in Proposed Bonds for Tulsa's ARCO Building

Article excerpt

Well over $1 million separates the opposing sides in the latest legal dispute over downtown Tulsa's Arco Building.

Tulsa County District Court Judge Dana Lynn Kuehn could decide as early as Wednesday what bond amount she will require of plaintiff Wiggin Properties LLC to anchor a temporary restraining order preventing Tulsa-based Arco Building LLC from selling its namesake six-story office building during this ongoing battle.

Oklahoma City-based Wiggin recommended a $200,000 bond, with the funds pulled from the original $200,000 escrow account Wiggin established more than a year ago under its disputed purchase contract.

Arco Building LLC, an affiliate of Kanbar Property Management, recommended a $1.7 million bond, reflecting the $1.4 million agreed purchase price in that contract and other costs, including legal fees.

Kuehn set the bond requirement last week when she agreed to a TRO limiting Kanbar's ability to sell the 119 E. Sixth St. building while it remains a target of Wiggin's breach-of-contract lawsuit.

That case, filed in December, seeks court enforcement of Wiggin's July 2012 contract to buy that building. Arco Building LLC said it canceled that yearlong agreement in November after Wiggin principal Charles Wiggin sought a building inspection deadline delay. The defendant claimed that showed Wiggin Properties could not complete the terms of that deal. Wiggin disagreed.

Kuehn convened a hearing Tuesday to discuss the bond amount. Outside of nixing talk of using escrow funds, she offered few other observations.

Wiggin attorney Steven K. Balman said the bond should represent Kanbar's actual damages for keeping the 133,400-square-foot building dormant through this lawsuit. Noting Kanbar's estimated operating costs at $50,000 a year, Balman suggested that a $200,000 bond could cover the next two years.

"To get to anything approaching $1 million, there would have to have been some offer made recently, declined due to the TRO," he said. …

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