KB Home suit back on track; Appellate court sends it back for trial

September 21, 2006
Originally published by
Monterey County Herald
An appellate court Wednesday breathed new life into a taxpayer lawsuit that challenged the $6 million paid by KB Home/Bakewell for the 107-acre plot on which the Seaside Highlands subdivision stands.
The 6th District Court of Appeals decision means the case will be sent back to Monterey County Superior Court for trial, reopening a controversial chapter in the city’s past. Attorneys for Seaside resident Benjamin Kaatz are seeking to force KB Home/Bakewell to pay the city more than $100 million for the property.
Kaatz had sued the city and developers KB Home/Bakewell in May 2003 alleging the city had violated numerous statutes. The lawsuit alleged that the property was not made available for affordable housing and that it was sold for far below its market value. Kaatz alleged the property was worth between $94 million and $115 million.