Tepper company seeks restraining order in York County lawsuit linked to Panthers site
Lawyers for the real estate company created by Carolina Panthers owner David Tepper to build the team’s headquarters has asked a judge for a restraining order against York County’s lawsuit to recover $21 million, court documents show.
The restraining order, which seeks to halt York County’s attempt to have it’s lawsuit heard in South Carolina, comes as a scheduled change of venue hearing in an unrelated bankruptcy case has been postponed until September. That venue change had been requested by creditors, including York County, Rock Hill and contractors seeking more than $100 million from GT Real Estate.
GT Real Estate was formed by Tepper to build the now-failed Rock Hill site. GT Real Estate filed for bankruptcy June 1 in Delaware after construction had been halted at the Rock Hill site in a dispute over money. GT Real Estate was incorporated in Delaware.
The restraining order sought by the lawyers is one of several filings from the Tepper companies, York County, Rock Hill, and creditors in what now are five ongoing legal actions in Delaware bankruptcy court, South Carolina federal court, and York County state court.
York County filed its lawsuit on June 8 against three other Tepper companies and the city of Rock Hill. The lawsuit alleges that Tepper’s companies -- Appaloosa Management, Tepper Sports Holding and DT Sports Holding -- misused $21 million of county money that was supposed to be spent on road improvements. The county’s lawsuit also claims the city of Rock Hill breached a contract to issue more than $100 million in bonds for the project.
The York County lawsuit was first filed in South Carolina state court, then transferred by lawyers representing Tepper companies to South Carolina federal court. But York County wants that lawsuit heard in York County and has asked a judge to move it back.
Now GT lawyers want a Delaware judge to issue an injunction that would halt the county’s lawsuit.
GT’s lawyers asked a judge this week to issue the restraining order, which would keep York County “and all other persons who are in active concert or participation with the County, from continuing to prosecute the State Court Action or otherwise seeking similar relief in any forum.”
Tepper’s lawyers say the county’s lawsuit is intertwined with the ongoing bankruptcy case and GT is being distracted by multiple lawsuits in several jurisdictions.
“The Debtor (GT) faces increasing distractions from this piecemeal litigation that directly impacts the Debtor’s reorganization efforts under this Court’s supervision,” Tepper’s lawyers claim. “The bedrock issue of whether the Debtor had any obligations with respect to the County Payment and whether the Debtor’s use of those funds gives rise to any claim against or interest in the Debtor or its property is squarely before this Court in the Adversary Proceeding and is central to the claims allowance process and the Debtor’s reorganization.”
Where the cases now stand
Creditors want the bankruptcy case heard in South Carolina. GT wants the bankruptcy, and all legal actions, heard in Delaware.
The bankruptcy judge in Delaware has not yet scheduled a court hearing about GT’s request for a restraining order. York County’s lawyers have not yet responded to the request for an injunction.
A hearing for the change of venue request by creditors in the bankruptcy case had been scheduled for Friday in Delaware court, but has been postponed to September, court documents filed late Tuesday show.
In the York County lawsuit now in federal court in South Carolina, GT Real Estate and the city of Rock Hill have denied in court documents York County’s claims of civil conspiracy and breach of contract. Tepper’s lawyers have asked that the lawsuit be dismissed.
Rock Hill officials state in court documents the city was under no obligation to issue bonds for the project. The city “may” issue bonds, but was not required to, city lawyers stated in documents.
A federal judge in South Carolina has put a hold on rulings over transfer of venue in the York County lawsuit until the bankruptcy court in Delaware rules on the same issue, court documents show.
This story was originally published August 11, 2022 at 7:45 AM with the headline "Tepper company seeks restraining order in York County lawsuit linked to Panthers site."
