Mammoth Lakes Land Acquisition, LLC v. Town of Mammoth Lakes

Defendant Town of Mammoth Lakes (the Town) entered into a development agreement with Terrence Balias to make improvements at the Town’s airport and to build a hotel or condominium project at the airport. Balias would initially lease the land for the hotel/condominium project but would later have the option to purchase it. Plaintiff Mammoth Lakes Land Acquisition, LLC (Developer), later acquired from Balias the right to build the hotel or condominium project.

The Town eventually changed its priorities and no longer wanted the hotel/condominium project. The Town sought help from the Federal Aviation Administration (FAA) to eliminate the Developer’s ability to build the hotel/condominium project. The FAA objected to the hoteFcondominium project and threatened to cut off federal funding for the airport. However, the Developer demanded that the Town move forward with the hotel/condominium project as contemplated in the development agreement. Despite the demand, the Town refused to move forward unless the parties could resolve the FAA’s objections.

Claiming the Town repudiated the development agreement, the Developer sued the Town for anticipatory breach of contract. A jury…