A company on the initial development team for Richmond’s Diamond District project is again suing its former partners for $40 million.
Republic Properties filed a lawsuit last July alleging that Thalhimer Realty Partners and Loop Capital broke a contract by establishing a new development group without ending their business “partnership.”
That lawsuit was thrown out in January on procedural grounds, but a Richmond Circuit Court judge gave Republic 28 days to file an amended lawsuit — which it did on Feb. 19.
Among the claims in its amended lawsuit, Republic alleges Thalhimer and Loop breached the “business venture” they created to pursue the city’s $2.4 billion redevelopment project and excluded it from the joint opportunity.
Republic’s lawsuit, first reported by Richmond BizSense, claims it’s owed damages and money after incurring costs for the project. It seeks $40 million in damages and legal fees.
“The Republic/Thalhimer/Loop business venture constitutes a partnership or joint venture under Virginia law,” the amended suit claims.
The city was not named in either suit as a defendant; Thalhimer’s CEO and city officials told VPM News in July that the lawsuit wouldn’t delay the project’s timeline.
The Diamond District redevelopment will replace the Richmond Flying Squirrels’ home stadium and eventually bring a hotel, retail and housing on roughly 67 acres along the I-95 east coast corridor and near Scott’s Addition.
Developers broke ground on the new ballpark in September, which is still set to be ready for the Richmond Flying Squirrels’ opening day in 2026.
The city initially selected RVA Diamond Partners — the limited liability company formed by Republic, Thalhimer and Loop — to develop the project in September 2022. Per court filings, Republic later acknowledged that the parties didn’t establish a formal or written partnership.
Diamond District Partners LLC, made up of Thalhimer and Loop, later reached an agreement with the city for the project without Republic, which Thalhimer said had backed out.
In January, Judge Bradley Cavedo ruled that Republic’s lawsuit didn’t establish that a partnership between the three parties had existed and threw it out.
“The Court finds a distinction between pursuing a contract and carrying on as co-owners of a business,” Cavedo wrote in his Jan. 22 order.
Cavedo added that Republic didn’t identify whether RVA Diamond Partners LLC or the “alleged partnership” between the parties did the work toward winning the city’s contract.
Republic claims in the amended lawsuit that the parties “entered into a special combination” to respond to the city’s Request for Interest for the project without a formal partnership.
Republic and Thalhimer signed a venture agreement, court exhibits show, but Loop did not. (Loop later exited the development team and has asked to be removed from the lawsuit.)
Attorneys representing Republic, Thalhimer and Loop did not respond to requests for comment on Tuesday.
The city shifted the financing plan for the project, selling more than $129 million in tax-exempt bonds to pay for the new Diamond baseball stadium.
