Katan Group sues partner CPC Resources in Domino sugar plant redevelopment

March 21, 2012 12:30PM

The Katan Group, one of two firms that are redeveloping the Domino sugar factory site in Williamsburg into a waterfront mixed-use residential and retail development, has filed a lawsuit against its partner, CPC Resources, Crain’s reported.

Katan alleges that CPC Resources has mismanaged the project since its inception in 2004 through inaction and misdirection, claiming “breach of fiduciary duty, breach of contract, breach of the implied covenant of good faith and fair dealing, negligent performance,” according to the court filing from this month.

CPC Resources “has effectively depleted all of Refinery’s available capital, while virtually no construction work has been performed,” the filing says.

CPC Resources denied the allegations to Crain’s, saying: “CPC Resources believes that the allegations are totally baseless… CPCR is confident that, in the fullness of time, all the plaintiff’s unfounded claims will be dismissed.”

As reported last week, CPC Resources was exploring a sale of the site. [Crain’s]