Case Win: City of Fontana v. Major Retail Operation

BB&K partners Michael Andelson and John Pinkney recently represented the City of Fontana and the Fontana Redevelopment Agency (RDA) in a U.S. District Court claim for lost sales tax and other revenues that the City and RDA would have received had a retailer not closed its 152,000 square foot store within the City of Fontana. In this case, the retailer entered into a sales tax Agreement and Operating Covenant wherein it agreed that it would operate or cause a store to be operated within the City for an agreed upon number of years. Thereafter, the retailer opened competing stores in nearby cities which the city claimed diluted sales at the Fontana store. The Fontana store was closed after only 5 years of operation. BB&K secured $4.7 million in damages on behalf of our client.