David Zucker and a rendering of Zocalo’s income-restricted Liora apartment building in Sloan’s Lake. (Courtesy Zocalo Development)
Zocalo Development says it can’t be sued by a minority owner for allegedly stealing millions of dollars from the firm’s construction arm and for refusing to buy out that co-owner.
Clark Atkinson, a longtime construction executive who lives in Grand Junction, is a 22.7% owner of Zocalo, where he was the chief development officer until recent years. He also owns 43.5% of Zocalo Construction, the development firm’s construction business.
On Halloween, Atkinson and two LLCs of his sued Zocalo, its CEO David Zucker and two other executives. Atkinson accuses them of conspiring to enrich themselves at his expense by moving $3.7 million from Zocalo Construction to other Zocalo entities and by refusing for the past two years to buy out his shares in the Zocalo companies, preventing his retirement.
“Zocalo Construction has become a funding source for other Zocalo entities, with monies being transferred, in many cases, for reasons unknown,” according to Atkinson’s lawsuit.
Zucker calls that lawsuit meritless. On Dec. 19, the CEO and his firms responded in court.
“The plaintiffs cannot sue for the purported theft of another entity’s property,” wrote lawyers for Zocalo Development, which is asking a Denver judge to dismiss all claims against it.
“The plaintiffs’ own allegations admit that the purportedly stolen property is funds or assets owned by other entities,” they said of the money taken out of Zocalo Construction.
Atkinson cannot sue on behalf of the construction firm because he is only a part-owner, according to Zocalo. And because the shareholder agreements he signed with Zocalo do not require that company to buy him out, Atkinson and his LLCs cannot demand it do so.
“The very agreements they rely on do not support their allegations,” Zocalo wrote.
Copies of those agreements that BusinessDen obtained in a records request state that “Zucker may elect (but shall not be obligated to) purchase all, but not less than all, of (Atkinson’s) shares” when the latter retires. If Zucker and other shareholders decline to buy out Atkinson, which is what has happened, Atkinson can then demand that Zocalo Development do so.
Such a demand must be made in writing within 120 days of his intended retirement. Zocalo claims that 274 days have passed and Atkinson has not put his demand in writing.
Zucker, meanwhile, claims that the allegations against him must be handled by a mediator, so he is asking Denver District Judge Chris Baumann to send the case to arbitration.
The CEO’s lawyer is Joshua Bugos with Gray Bugos & Schroeder in Littleton and his company’s lawyer is Zane Gilmer in the Denver office of Stinson, a national law firm. Atkinson’s attorneys are Ben Wegener and Dan Belcastro with Wegener Lane & Evans in Grand Junction.
David Zucker and a rendering of Zocalo’s income-restricted Liora apartment building in Sloan’s Lake. (Courtesy Zocalo Development)
Zocalo Development says it can’t be sued by a minority owner for allegedly stealing millions of dollars from the firm’s construction arm and for refusing to buy out that co-owner.
Clark Atkinson, a longtime construction executive who lives in Grand Junction, is a 22.7% owner of Zocalo, where he was the chief development officer until recent years. He also owns 43.5% of Zocalo Construction, the development firm’s construction business.
On Halloween, Atkinson and two LLCs of his sued Zocalo, its CEO David Zucker and two other executives. Atkinson accuses them of conspiring to enrich themselves at his expense by moving $3.7 million from Zocalo Construction to other Zocalo entities and by refusing for the past two years to buy out his shares in the Zocalo companies, preventing his retirement.
“Zocalo Construction has become a funding source for other Zocalo entities, with monies being transferred, in many cases, for reasons unknown,” according to Atkinson’s lawsuit.
Zucker calls that lawsuit meritless. On Dec. 19, the CEO and his firms responded in court.
“The plaintiffs cannot sue for the purported theft of another entity’s property,” wrote lawyers for Zocalo Development, which is asking a Denver judge to dismiss all claims against it.
“The plaintiffs’ own allegations admit that the purportedly stolen property is funds or assets owned by other entities,” they said of the money taken out of Zocalo Construction.
Atkinson cannot sue on behalf of the construction firm because he is only a part-owner, according to Zocalo. And because the shareholder agreements he signed with Zocalo do not require that company to buy him out, Atkinson and his LLCs cannot demand it do so.
“The very agreements they rely on do not support their allegations,” Zocalo wrote.
Copies of those agreements that BusinessDen obtained in a records request state that “Zucker may elect (but shall not be obligated to) purchase all, but not less than all, of (Atkinson’s) shares” when the latter retires. If Zucker and other shareholders decline to buy out Atkinson, which is what has happened, Atkinson can then demand that Zocalo Development do so.
Such a demand must be made in writing within 120 days of his intended retirement. Zocalo claims that 274 days have passed and Atkinson has not put his demand in writing.
Zucker, meanwhile, claims that the allegations against him must be handled by a mediator, so he is asking Denver District Judge Chris Baumann to send the case to arbitration.
The CEO’s lawyer is Joshua Bugos with Gray Bugos & Schroeder in Littleton and his company’s lawyer is Zane Gilmer in the Denver office of Stinson, a national law firm. Atkinson’s attorneys are Ben Wegener and Dan Belcastro with Wegener Lane & Evans in Grand Junction.
