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Real estate firm's files sealed in BMW suit
Furman Co. says documents proprietary

Published: Saturday, March 10, 2007 - 2:00 am


By David Dykes
BUSINESS WRITER
ddykes@greenvillenews.com


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A federal judge ruled Friday that a local real estate company doesn't have to disclose confidential business information as part of a Florida developer's lawsuit against BMW Manufacturing Co. over development of an automotive research park in Greenville.

U.S. District Judge G. Ross Anderson Jr. granted a motion filed by the Furman Co. and its president, Stephen Navarro, asking the court to seal certain documents and confirming their proprietary designation under an earlier confidentiality order.

Neither the Furman Co. nor Navarro is a party to the lawsuit filed by Florida developer Cliff Rosen against BMW over development of the Clemson University International Center for Automotive Research. The project, known as ICAR, is under development along Interstate 85.

The Furman Co. and Navarro have maintained they weren't involved in the disputed matters that led to Rosen's lawsuit, and that disclosure of the documents could seriously harm the real estate firm.

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But at a hearing before Anderson earlier this week in Greenville, Rosen's attorneys said they believed the documents would be critical to the deposition of Gov. Mark Sanford on issues central to the defenses raised by BMW.

In his five-page ruling, Anderson questioned the documents' relevancy to issues in the case. He also said Navarro and his company became involved in the ICAR research campus after Rosen's involvement in the project ended.

The judge wrote that "the documents at issue are highly confidential and disclosing these documents to the public could irreparably harm the Furman Co. and Navarro not only in current business ventures, but also in their future business dealings."

The judge said Rosen, who was ICAR's developer, is a direct competitor of the Furman Co. Rosen is pursuing a separate development next to ICAR called Millennium Campus.

Anderson also said Rosen's attempt to use the documents at Sanford's deposition "could promote improper speculation as to the motivation" of the governor's actions.

Sanford's deposition is scheduled for March 20. The Governor's Office has declined to comment.

Rosen's attorneys have said they will challenge Sanford's contention that plans for ICAR were renegotiated to save taxpayers money.

Sanford's public comments about a renegotiated deal for ICAR "will be emphatically impeached" and the governor's claim of $11 million in taxpayer savings on development fees can be questioned, Rosen's attorneys said in court filings.

The Furman Co. said in court filings it provided "a large quantity" of documents to both sides in the case. But it argued that proprietary documents, such as pricing and information related to a pending Furman Co. transaction, should remain private.

According to Anderson's ruling, to be sealed are documents from 2005-2006 that include faxes; an appraisal dated Nov. 21, 2005; letters; agreements; an invoice dated March 21, 2006; and other materials.

In his lawsuit, Rosen alleges BMW conspired with Clemson University and state officials to force him out as developer of ICAR.

BMW, the only defendant in the case, has denied Rosen's allegations, calling his claims a "bizarre theory."

The lawsuit arose out of a complex set of business and contractual relationships involving Rosen's business interests, BMW, Clemson, the South Carolina Department of Commerce, Sanford, the city of Greenville and others, according to court records.

Rosen said in his lawsuit that BMW's "tortious interference" cost him at least $99 million in profits and fees from the development and sale of real estate.

He also said he would have realized $33 million in profit and fees from development and operation of a wind tunnel before he was obligated to turn it over to Clemson.

He is seeking actual and punitive damages and is asking for a jury trial, which Anderson said could be held late this year.

According to court records, Rosen entered into a series of contracts with AMREC LLC, a subsidiary of the Clemson University Foundation, to develop ICAR.

The court records say the alleged terms called for Rosen to donate to Clemson part of a 407-acre tract he controlled on I-85 for development of a Clemson research campus.

In exchange, he expected to receive certain rights to the Clemson name and development fees for the remaining acreage of the planned contiguous research park.

A component of the alleged development agreements was a state-of-the-art wind tunnel in conjunction with the research campus that would target NASCAR racing teams and automobile manufacturers, according to court records.

In January 2003, however, Sanford, a newly elected governor, initiated a review of ICAR that resulted in a wholesale restructuring of the land deal.