Judge Rules Contract Not Breached in Bowie Partnership

Seven years ago, two businessmen entered into a partnership designed to bring a town center to Bowie and millions to both of them.

But the partnership dissolved into a dispute over a parcel of land that one partner, Gary Murray, wanted to develop separately in honor of his father. Murray's partner, Kenneth Michael, agreed to the request in the contract but said the 20 acres Murray wanted could not be parceled out until the 381-acre project was fully mapped. Murray sued Michael for breach of contract.

Now a Prince George's County judge has ruled on behalf of Michael and his son Gary, throwing out Murray's request to end the partnership in a biting rebuke of his arguments.

Judge Sean D. Wallace wrote in his decision, dated Friday, that "Murray cannot reap the benefit of the time and labor of the Michaels where there is no breach of contract."

The partnership, struck in December 2000, was an unlikely pairing. Murray made his fortune building and selling technology companies. Michael is one of the largest commercial real estate developers in the county.

Murray bought the land for the development, paying $1.6 million for a 35 percent share in the project. The Michaels were to contribute their expertise for a 50 percent share. Investors holding the remaining 15 percent were not involved in the suit.

Yet the project stymied over Murray's desire to dedicate land to his father, Samuel Carrington Murray.

Murray said Michael's failure to inform him that he could not have the parcel until the development was mapped amounted to a breach of contract, and the dispute escalated.

In August 2006, Centex Homes offered to buy the residential portion of the property for $65 million, according to the judge's decision. But Murray rebuffed the offer and continued to ask for the 20-acre parcel of land. Ultimately Centex rescinded its offer.

Timothy F. Maloney, a lawyer for Michael, said yesterday that the mixed-use project, which is to include 1 million square feet of retail and office space, a 25-acre man-made lake, luxury hotels, schools and conference center, will continue to be built. He said Murray will still get his 20 acres of land.

"I think the Michaels are committed to providing value to all their partners, including Mr. Murray," Maloney said. "That was why the lawsuit was so strange."

Andre J. Gingles, a lawyer for Murray, declined to comment, saying he had not seen the judge's decision.

Staff writer Rosalind S. Helderman contributed to this report.