A billion-dollar lawsuit seeking damages from Gov. Jerry Brown’s decision to back out of a state buildings sale starts Tuesday in San Francisco.
The litigation against the Department of General Services stems from Brown’s rejection of a sale agreement for 24 buildings on 11 properties arranged by former Gov. Arnold Schwarzenegger and the Legislature. The sale to California First LP would have raised $1.2 billion in cash and stipulated the government would stay in the buildings and pay rent.
The deal would have infused the state with some quick money, but in the long run would cost about $6 billion more over 35 years than keeping the properties, according to the Legislative Analyst’s Office.
The company wants the court to enforce the sale and to award damages. The trial in San Francisco Superior Court is expected to last up to four weeks, according to California First spokesman Steve Maviglio. The case is probing untested legal ground whether the executive has the authority to kill a contract approved by the Legislature and signed by a previous governor.
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Call Jon Ortiz, Bee Capitol Bureau, (916) 321-1043.
The 11 California state properties include ...
Junipero Serra State Building, Los Angeles
Ronald Reagan State Building, Los Angeles
Elihu Harris Building, Oakland
California Emergency Management Agency Headquarters, Rancho Cordova
Attorney General Building, Sacramento
Capitol Area East End Complex, Sacramento
Department of Justice Building, Sacramento
Franchise Tax Board Complex, Sacramento
Public Utilities Commission Building, San Francisco
Earl Warren and Hiram Johnson buildings, San Francisco
Judge Rattigan Building, Santa Rosa