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Big Dispute involving the Ritz in Chicago
May 29th, 2013 9:55 AM

The Ritz Carlton just won a huge dispute against the Water Reclamation District.  The 6 year long dispute came to a decision on January 4 of this year and awarded Prism Development Group $36.4 million.

This long drawn out dispute was over an easement regarding the alley behind the Ritz Carlton Residences at 664 N Michigan Avenue and the Water Reclamation District headquarters behind it at 100 E Erie.  Although the Water District owns the alley, Prism had an easement to use the ally, until the district kept them out with a locked gate.  Prism claimed this delayed construction significantly.

The district claims that Prism had no intention of starting construction that early, but Prism says that that it was delayed enough to have to come up with alternatives, costing them more money and delayed enough that even some of the buyers have sued to get their deposits back.

This dispute began in 2006 when the Water District sued Prism over use of the alley, but Prism countersued and won in 2008.  Cook County Circuit Court Judge, Kathleen Pantle ruled in favor of Prism on the belief that the dispute of easement delayed construction that could have begun in September 2007.  Instead everything was delayed until March of 2008.  She also awarded an additional $5.4 million for the increase in construction costs.

Easement disputes are very common, especially in large cities like Chicago, however they rarely make it to this level.  Of course, the Water District plans to appeal the decision but council for Prism believes that they have upper hand. 

Posted in:General
Posted by Michael Hobbs on May 29th, 2013 9:55 AMPost a Comment

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