KB Sues MacFarlane Over Shuttered Developments

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KB Home accused MacFarlane Partners LLC of failing to pay millions of dollars for its share of three residential projects in the state.


Los Angeles-based KB said in a lawsuit that it has incurred more than $50 million in damages because of MacFarlane’s failure to pay its share of the projects’ costs, resulting in a breach of contract, according to a suit filed May 30 in Los Angeles.


KB Home also accused MacFarlane of breach of fiduciary duty and contract interference.


The three developments are in L.A., Anaheim and Irvine, KB Home said, and were supposed to be jointly developed starting in 2005 and 2006 but the San Francisco-based real estate management company failed to pay its part, according to KB.


MacFarlane said in January that it would no longer be a part of or fund any of the projects, the lawsuit said.


Shares in KB were up 1.1 percent to $21.76 in early trading Wednesday.

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