McGee

FACTS AND PROCEDURE

In the spring of 2013, the board of the Torrance Unified School District (District) adopted three separate resolutions to approve construction contracts with Barnhart-Balfour Beatty, Inc., doing business as Balfour Beatty Construction (Balfour), for Hickory Elementary School, Madrona Middle School, and North Hills High School. The guaranteed maximum price of the three projects exceeded $48 million. With respect to each school, the District and Balfour signed three agreements—a site lease (leasing land from the District to Balfour), a sublease (leasing land from Balfour to the District), and a construction agreement (between the District and Balfour). Under the terms of the agreements, Balfour would lease the land from the District and the District then leases back the land and payments of the leasebacks cover the cost of the construction projects. McGee seeks to invalidate these agreements. In his first amended complaint, McGee alleged causes of action for (1) failure to comply with section 20110 of the Public Contract Code; (2) breach of fiduciary duty; (3) failure to comply with section 17417 of the Education Code; (4) contractor conflict of interest; (5)…