Appeals court rejects Uniland suit against BlueCross
Business First of Buffalo - by James Fink Business First
Uniland Development Co.'s legal challenge to a decision by BlueCross BlueShield of Western New York to hire an out-of-town firm to build the health insurer's headquarters has been dismissed.
The State Supreme Court's Appellate Division -- Fourth Department, unanimously dismissed Uniland's lawsuit against BlueCross BlueShield.
Uniland filed the suit shortly after BlueCross BlueShield hired Duke Realty Corp. to develop its downtown Buffalo corporate headquarters. Duke was retained in December 2004.
Uniland had alleged that it had exclusive rights to serve as developer of the 450,000-square-foot, $90 million project. The rights, the company claimed, stemmed from language in a lease extension granted to BlueCross BlueShield for its current location on Main Street near Canisius College.
The court granted BlueCross BlueShield's right to dismiss the Uniland lawsuit in its entirety.
Uniland officials declined comment on the ruling, pending on-going litigation pertaining the project, said Tom Widzinski, company spokesman.
BlueCross BlueShield hopes to be in the new building by next August.
Its current home, in a deal brokered by Uniland, is being acquired by Canisius College for its own expansion.
The new BlueCross BlueShield site incorporates the 1848 facade from the Buffalo Gas Works Co. on the historic W. Genesee Street site.
An estimated 1,300 people will work in the building, once it is completed.
"While the Uniland lawsuit never threatened our new headquarters project, we are very pleased that this matter is behind us," said Alphonso O'Neil-White, BlueCross BlueShield president and CEO. "The headquarters project is proceeding according to schedule."
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