York County vs. David Tepper: New court documents show how this dispute is unfolding
York County is fighting back in a lawsuit against companies owned by Carolina Panthers billionaire owner David Tepper.
Lawyers for York County filed court documents late Wednesday stating they want their case heard in York County. They argue that the county lawsuit against Appaloosa Management, Tepper Sports Holding, and DT Sports Holding is unrelated to the ongoing bankruptcy case of another Tepper company -- GT Real Estate.
In a countermove Thursday, Tepper’s lawyers filed documents asking that the county’s lawsuit be dismissed.
York County filed its lawsuit in South Carolina state court in York in June, but Tepper’s lawyers later moved it to federal court and wants it heard as part of the GT Real Estate bankruptcy in a Delaware federal court.
GT Real Estate (GTRE) was incorporated in Delaware by Tepper and given the task to build the Rock Hill practice site and headquarters for the Carolina Panthers. That project failed earlier this year, and GT Real Estate has filed for bankruptcy.
Creditors are seeking more than $100 million in the bankruptcy case.
York County’s lawsuit alleges Tepper’s three companies committed conspiracy and negligence in the use of $21 million that the county says was to be used only for roads.York County called the collapsed effort a Tepper “vanity project” and wants the road tax money back, with interest and damages.
York County’s lawyers say the county lawsuit is not about GT Real Estate.
“Indeed, the Tepper Defendants improperly utilized these funds instead on their failed development of the Carolina Panthers headquarters and practice facility,” York County’s lawyers wrote. “York County’s tort claims against the Tepper Defendants exist regardless of whether the Delaware Bankruptcy Case exists or not. They are wholly unrelated to the Delaware Bankruptcy Case. Therefore, subject matter jurisdiction on this ground does not exist....The South Carolina State Action merely seeks to hold strangers to the bankruptcy matter– the Tepper Defendants – accountable for their tortious actions that have injured another stranger to the bankruptcy – York County.”
Construction on the Panthers headquarters started in 2020 in Rock Hill, then halted in March 2022 over money squabbles. GT Real Estate filed for bankruptcy on June 1.
Tepper’s companies also pulled out of a soccer project at the old Eastland Mall site in Charlotte last week.
Tepper companies want lawsuit dismissed
Tepper’s lawyers have denied York County’s allegations in court documents.
In documents filed Thursday, Tepper companies lawyers asked a judge to dismiss the York County lawsuit. The Tepper companies had nothing to do with the project, the lawyers stated.
“The Moving Defendants (Tepper companies Appaloosa, DT Sports Holding and Tepper Sports Holding) received nothing from Plaintiff and have no contracts with Plaintiff or anyone else relating to the Project, and no one alleges otherwise,” Tepper’s lawyers wrote. “ The Moving Defendants’ sin, according to Plaintiff, is being affiliated with GTRE.”
The three Tepper companies named in the lawsuit had nothing to do with York County’s claim and, because GT Real Estate is under bankruptcy proceedings, the claim should be dismissed, Tepper company lawyers say.
“GTRE is a necessary and indispensable party to this litigation, and a complete, just, and efficient resolution requires its participation. Because GTRE cannot be joined as a result of the automatic stay imposed under federal bankruptcy law, the Complaint should be dismissed,” Tepper lawyers wrote.
South Carolina federal court judge Cameron Currie has not yet ruled on York County’s request to move the case to South Carolina, or Tepper’s request to have the lawsuit dismissed.
The county’s court filing is unrelated to the ongoing bankruptcy case in Delaware, which creditors from the failed site project also want moved to a federal court in South Carolina. Tepper companies want all the cases heard in Delaware, where GT Real Estate is incorporated.
Both sides in the bankruptcy case cite “home court” advantage as they argue about venue.
The same York County lawsuit also alleges breach of contract against the city of Rock Hill for failure to issue more than $100 million in bonds. Rock Hill officials said in court filings this week the city was not required to issue the bonds.
This story was originally published August 4, 2022 at 3:11 PM with the headline "York County vs. David Tepper: New court documents show how this dispute is unfolding."
