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The Honolulu Advertiser
Posted on: Thursday, August 27, 2009

Developer sues UH over Cancer Research Center contract

Advertiser Staff

A dispute over development of the Cancer Research Center has spilled over into state Circuit Court, with Townsend Hawaiçi LLC suing the University of Hawaiçi for breach of contract.

Townsend this week filed a lawsuit alleging UH acted in bad faith by repudiating a contract the developer said it had to develop a $200 million facility in Kakaçako.
Townsend said it was selected as the project’s developer in 2005 and that it had conducted studies, helped with planning and negotiation of a ground lease on the property next to the John A. Burns School of Medicine.
The lawsuit alleges UH sent a letter to Townsend in April saying the developer it had no rights to develop or construct the center. It followed that up on June 3, with another letter telling Townsend it had terminated contract rights.
Townsend, which had originally pursued the dispute through the state Office of Administrative Hearings, is asking for damages, including lost profits, and other relief.