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Whole Foods developers sue Giant Eagle

By David Singer 2 min read
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The developers aiming to build a mixed-use facility adjacent to South Hills Village mall have filed a lawsuit against Giant Eagle and other challengers to their site seeking unspecified damages from delays the defendants allegedly caused.

Jerry Cipriani and Hal Kestler, the developers named as 1800 Washington Road Associates in the 38-page filing, said Giant Eagle, Sprawl Busters, and attorney Thomas Ayoob have been making “unlawful efforts to prevent legitimate competitors to Giant Eagle … (and) from offering the citizens of Upper St. Clair a meaningful choice in grocery stores.”

A Giant Eagle Market District store is located at South Hills Village square, one half-mile from the proposed development site, which would be anchored by a Whole Foods store. The developers said both Whole Foods and Market District stores attract the same types of customers, and that Giant Eagle enlisted the help of co-conspirators to stifle competition.

In the filing, the developers go on to say the defendants have caused serious and lengthy delays through “frivolous zoning appeals,” and have “deprived the citizens of (Upper St. Clair Township) of substantial tax revenue that would have been collected had the development proceeded unimpeded,” and have tarnished the professional reputations of the developers (with incorrect traffic data and slanderous claims of rodent infestations distributed to the public).” The developers said the multiple zoning appeals and subsequent delays have diminished the value of the property, and they have incurred attorneys’ fees and expenses defending the “improper attacks,” to which they are seeking compensation.

In a statement from Giant Eagle, spokesman Rob Borella said the complaint is without merit and that Giant Eagle has consistently acted ethically in voicing its concerns about the development site.

“The complaint contains numerous material misstatements,” he said, “and Giant Eagle plans to vigorously defend against the allegations and is confident this case will be resolved in its favor.”

The unspecified compensation and punitive damages the developers are seeking are appropriate they say, because “Giant Eagle’s, Sprawl Buster’s (and other involved attorneys’) actions were committed intentionally, willfully and maliciously as to indicate wanton disregard for WRA’s rights,” and that Giant Eagle’s history of “anti-competitive dealings … merit the imposition of punitive damages as to deter such conduct currently and in the future.”

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