Balfour Beatty sues CIM Group over unpaid work at 2 California Plaza

Contractor claims CIM shorted it $500k for renovating the tower's lobby

TRD LOS ANGELES /
Sep.September 06, 2018 01:00 PM
CIM Group co-founder Shaul Kuba, Balfour Beatty CEO Leo Quinn, and 2 California Plaza

A contractor claims CIM Group failed to pay it more than half a million dollars for work at 2 California Plaza in Downtown Los Angeles.

Balfour Beatty, a London, U.K.-based contractor, alleges CIM Group is refusing to pay for 2015 renovation work on the 52-story tower’s lobby in violation of their contract. CIM, based in L.A., is claiming it is offsetting “against potential damages for water intrusion” caused by the work, according to a lawsuit filed in Los Angeles Superior Court.

In March, the two companies agreed to a $1.25 million payout to Balfour Beatty, even though Balfour Beatty’s attorney claims that was “less than the amount due” to the firm. CIM Group paid out a first payment of $716,200, but not the remaining $531,000.

On top of that amount, Balfour Beatty is seeking an additional $243,100 it claims it is owed but that wasn’t part of the total agreed to in March. Balfour claims that CIM Group released its right to dispute that it owed at least that much to Balfour when it signed the March agreement.

CIM Group has been shopping 2 California Plaza, since early 2017. The tower, which has 1.37 million square feet, was rebranded as [email protected] in late 2016 when City National Bank inked a 300,000-square-foot lease there.

Balfour and CIM Group did not return requests for comment.


Related Articles

arrow_forward_ios
Hollywood & Highland, Gaw Capital Chairman Goodwin Gaw and DJM founder John Miller

CIM Group sells Hollywood & Highland mega-complex for $325M: sources

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh with a rendering of the project

Picture perfect: CIM Group nails down craft retailer Michaels at Mid-Wilshire complex

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh and 4750 Wilshire Boulevard (Credit: Google Maps)

CIM Group lists part of its Miracle Mile office campus

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Charles Co. secures $215M refi for retail portfolio

arrow_forward_ios