HMDA to Settle Lawsuit
By Art Harvath
The Huntington Municipal Development Authority voted unanimously Thursday to authorize its attorneys to settle the pending lawsuit brought against them by Kentucky developer Prakash Patel in October, 2002. Patel sued the HMDA and the Huntington Area Development Council when the HMDA approved the sale of a lot the Kinetic Park site to Holiday Inns, Inc.
The suit alleges misrepresentation, detrimental reliance, breach of contract and bad faith on the part of HADCO, who was the agent representing the HMDA. The suit asked the court for an approximate amount of $100,000 in compensatory damages and $1 million in punitive damages as a result of HADCO’s and HMDA’s alleged negligent misrepresentation and intentional and willful breach of contract.
Patel alleges that HADCO representative Jerry McDonald led them to believe that their company would be awarded the contract to build a Marriot Courtyard Hotel at the Kinetic Park site. On April 16, 2002, HMDA awarded the contract to local developer Carl Midkiff, president of Holiday Inns, Inc.
HMDA chairman Tim Millne said it was time to put the matter to rest. “We authorized our attorneys to finalize the settlement on the Patel lawsuit,” Millne said of the action taken at the Special Call meeting. “We feel as an Authority we want to put this matter behind us and move forward with the project.” He would not give any details of the impending settlement. Local attorneys Curt Anderson and Dave Rich are legal counsel for HMDA. Patel was unavailable for comment.