RIVAL MALLS STILL BATTLE IN COURTS GLENDALE'S GALLERIA, AMERICANA AT ODDS.

Byline: EUGENE TONG

Staff Writer

GLENDALE -- Construction is under way at the $324 million Americana at Brand center, but its developer Caruso Affiliated and Chicago-based General Growth Properties, which owns the adjacent Glendale Galleria, continue to clash in court.

A Los Angeles Superior Court judge recently ordered Caruso to return confidential leasing documents to General Growth. Meanwhile, a lawsuit filed by Caruso in 2004 alleging its neighbor and competitor violated antitrust laws and engaged in unfair business practices is slated to go to court this summer.

It's part of the ongoing legal tussle since Caruso proposed the 15.5-acre shopping and resident project in downtown. Americana is scheduled to open next year right next to the Galleria shopping center.

In December, General Growth filed an injunction against Caruso Affiliated and developer Rick Caruso, who allegedly had obtained information including rent rolls, lease and sales data for Glendale Galleria tenants from a third party.

The plaintiffs wanted to prevent Caruso from using the information, which they deemed highly confidential, and sought to get it back. Superior Court Judge Ann Kough ordered Caruso to return the documents on Jan. 23.

Officials with Caruso Affiliated could not be reached for comment Wednesday, but the court order stated the Los Angeles-based developer has not admitted they had confidential information or had obtained it through "improper means."

General Growth attorney David Battaglia said the decision shows Caruso, which filed a $40 million antitrust claim in 2004 against his client, also engaged in unfair business practices.

"Caruso secretly has been harboring General Growth's confidential tenant information related to the Galleria for years, and the court order affirms Caruso's unfair conduct," he said Wednesday.

Caruso's lawsuit accuses General Growth of violating business practices by asking Caruso to join a partnership and divide tenants between the Galleria and the Americana. Caruso also accused General Growth of threatening store chains by saying it would delay or deny them leases at other malls if they lease at the Americana.

Battaglia said the allegations were unfounded.

"Caruso originally alleged that General Growth was competing unfairly by threatening the Cheesecake Factory and other alleged unnamed tenants not to do business with him," he said. "But the Cheesecake Factory was deposed, and confirmed what it has been saying publicly since 2004, that no such business ever occurred."

General Growth had attempted to block construction of the Americana by challenging in court the city of Glendale's study of the project site. The lawsuit was dropped in 2005 after losing at the state Court of Appeal.

eugene.tong(at)dailynews.com

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