DEVELOPER SUES SELF; WINS, LOSES $2.5 MILLION

DEVELOPER WINS, LOSES $2.5 MILLION IN SUIT AGAINST SELF

On September 12^th, 2006, developer John J. Burke, with a business address of 622 N. Water Street, Suite 200, filed suit in Milwaukee County against 741 Milwaukee LLC, also with a business address of 622 N. Water Street, Suite 200. On November 1^st, 2006, Burke won a default judgment of $2,534,475 against 741 Milwaukee LLC when the defendant, unrepresented by legal counsel, failed to appear in court. Since Burke and 741 Milwaukee appear to share an address, staff, and at least some degree of ownership, according to state records, it is reasonable to assume that Burke sued Burke, and won (or lost) the case just by showing up (or failing to show up) in court. Simple enough.

741 N. Milwaukee Street (the building) was purchased by Burke when he bought 741 Milwaukee LLC in 1999, and was redeveloped into the Grain Exchange Building Condominium. The mostly residential building is anchored by Zarletti Restaurant.

However, on October 30^th, 2006, one day before Burke won the default judgment against himself, Zarletti and 43 others filed suit as Grain Exchange Condominium Association, Inc., et al vs. John J. Burke, Jr. et al.

In this case, Burke’s et al was – you guessed it, 741 Milwaukee LLC, and this time, both were represented by attorney Bruce C. O’Neill. This case, apparently a rather typical one where condo owners sue the developer, usually over problems with the building, is scheduled for a jury trial in October.

It appears quite certain that Burke might be able to hedge his bets once again. (He and the Forest County Potawatomi are the only folks who have never lost money in Milwaukee’s casino – he developed and operated our “Miracle on Canal Street” from 1989 to 1997). In the event the Grain Exchange Condominium owners win the case against 741 N. Milwaukee, their claims for recovery will likely be secondary to the $2.5 million judgment Burke has already won against that outfit, and that he still has to receive from it, once he decides to pay up.

I am awaiting a response from the interested parties to sort this out.

--Michael Horne