NEW ORLEANS – A local resource company manager claims his company was denied more than $20 million dollars agreed upon by oral contract for a medical center project.

Joseph A. Jaeger Jr., a local manager and member of Consolidated Resource Management, LLC, filed suit against the MCC Group LLC, the St. Margaret’s Daughters, St. Margaret’s Foundation and Lawrence Stansberry in the Orleans Parish Civil District Court on Jan. 8.

Jaeger claims St. Margaret’s Foundation acquired properties located on the former Mercy Hospital site on Bienville in New Orleans. In January 2010, Jaeger alleges he and STM entered into an oral contract to co-own and develop three buildings into an academic medical center. These buildings included a retail and condominium complex that would be part of an Louisiana State University Health Sciences Center New Orleans branded Cardiovascular Center of Excellence acute care hospital. Jaeger asserts Consolidated Resource and STM agreed they would be equal partners in the venture, with Jaeger funding pre-development expenses of over $1.5 million and STM contributing the property certified by provider and lease agreements from LSUHS.  It was also agreed upon that Jaeger would receive tax losses of $10 million, a construction profit of $10 million, and future rental income and asset appreciation.

The plaintiff claims his company worked for three years accruing the agreed upon redevelopment expenses. However, STM allegedly failed to get the agreements from LSUHS, refused to recognize Jaeger as 50 percent co-owner, and did not include Jaeger in the $10 million worth of tax losses.

The plaintiff accuses STM of fraud, deceit and misrepresentation in violation of the Louisiana Unfair Trade Practices Act.

Jaeger is seeking damages that he claims, according to LUPTA, would entitle his company to compensation totaling three times the damages sustained. Jaeger seeks either a declaratory judgment allowing him to remain a partner with full rights and that the terms of development not be dissolved, or a mandatory injunction to list him as a 50 percent property owner with STM filing a $1.5 million dollar mortgage for the two properties Consolidated Resource worked on directly. Finally, Jaeger seeks a permanent injunction, prohibiting the sale or development of the property until the matter is legally resolved.

The plaintiff is represented by attorney James M. Garner of New Orleans.

The case has been assigned to Division L Judge Kern A. Reese.

Case no. 2014-00283.

Want to get notified whenever we write about Louisiana State University ?
Next time we write about Louisiana State University, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Louisiana State University

More News