Law Advocate Group, LLP 
High-Stakes Civil Litigation Highlights Tensions Between Private Developers and Public Agencies
In a major civil litigation development, real estate moguls Don Peebles and Victor MacFarlane have filed a lawsuit against the City of Los Angeles, alleging the city wrongfully terminated their exclusive agreement to develop the ambitious $1.6 billion Angels Landing project in Downtown LA. The legal action was filed in Los Angeles County Superior Court and could significantly impact public-private real estate development protocols across the city.
The project was originally awarded in 2017 through a competitive bidding process and was set to include two skyscrapers — one slated to be among the tallest buildings on the West Coast — featuring luxury residences, a hotel, restaurants, retail space, and a charter school.
Core Allegations in the Lawsuit
The developers, through their joint venture Angels Landing Partners, allege that the city breached its agreement on questionable grounds after a business restructuring. Key legal claims include:
- Breach of Contract: The City terminated the deal citing an unauthorized “transfer of interest” after the developers acquired Claridge Properties’ stake. Plaintiffs argue the transfer complied with contractual terms.
- Political Interference: The complaint suggests the termination may have been influenced by political motivations unrelated to the legal terms of the agreement.
- Loss of Investment: Peebles and MacFarlane seek to recover over $20 million in investments spent on preliminary planning, legal, and architectural work.
A Superior Court judge has partially overruled the city’s demurrer, allowing the case to proceed to the next stage of litigation.
Legal and Financial Implications
This case presents a precedent-setting conflict over exclusive negotiating agreements (ENAs) between municipalities and developers. It also raises questions about transparency, accountability, and consistency in how large-scale developments are managed by local governments.
The Angels Landing lawsuit may shape how other cities structure future public-private development deals, particularly regarding transfer clauses, project milestones, and termination rights.
Protect Your Real Estate or Contractual Interests
Whether you’re navigating a complex real estate deal or disputing a breach of contract with a public agency, having skilled legal representation is essential.
Contact Law Advocate Group — a trusted Los Angeles law firm specializing in civil litigation, real estate disputes, and government contract law. Our attorneys are equipped to protect your interests and advocate for the fair enforcement of your rights.
