The City of Santa Ana lost a federal lawsuit against a homeless shelter developer

A federal lawsuit filed by the City of Santa Ana on March 21, 2022, against Dyer 18, LLC, the owner of the
Carnegie Homeless Shelter, was dismissed in its entirety last week.

Moreover, the City’s accompanying ex parte application for a temporary restraining order was terminated as moot, with the Court granting Dyer’s Motion to Dismiss, which Motion properly asserted and argued:

“…the City of Santa Ana failed to state a claim upon which relief can be granted… and “… the City has improperly commenced this action in an attempt which appears to be for the sole purpose of circumventing and chilling Dyer’s rights to enforce the terms and conditions of the parties’ Lease Agreement (as defined herein) which Lease Agreement the City has admittedly breached.”

By way of background, Dyer leases the shelter to the City. As part of the lease agreement, Dyer agreed to perform construction at the property that the City agreed to pay for in full. The City was required to
pre-approve budgets/invoices prior to the commencement of any work. The City, believed to be
working under the direction of City Manager Kristine Ridge, apparently wanted Dyer to perform the remaining work at the property without the City’s approval. Dyer continued to perform the pre-approved construction at the property while waiting for the remaining budgets/invoices to be approved by the City.

However, in a seeming effort to strong arm Dyer to perform the work without the necessary and contractual pre-approvals, the City commenced the federal lawsuit, in which the City falsely alleged that a complete work stoppage had been directed by Dyer.

None of the relief sought by way of the City’s federal lawsuit was ever granted. The Honorable Judge Carter has justly and rightfully dismissed the case in full. Justice has finally been served.

The developer noted that “This futile and yearlong federal lawsuit initiated by the City has proved to be nothing more than an utter waste of Santa Ana taxpayer dollars.”