12:41 p.m.
The charity affiliate of the Washington Nationals today filed a $4.4 million lawsuit against a former bidder for the franchise, saying he reneged on a promise to match any money raised at a fundraising gala last year.
The Washington Nationals Foundation said this morning that Franklin Haney, a District real estate developer who submitted a bid to own the team, promised to contribute more than $400,000, the amount raised at a dinner gala in September 2005.
Haney, however, has not paid and says the foundation has no power to compel payment.
The lawsuit claims Haney used the pledge in an attempt to gain favor with Major League Baseball, the District and the media and reneged when baseball awarded the franchise to the family of local real estate developer Theodore N. Lerner in May.
“He never told anyone his promise was contingent,” said Geoffrey P. Gitner, an attorney for the foundation. “The Nationals and the foundation relied on his promise. He led us to believe he would honor his pledge.”
The foundation is suing for breach of contract and fraud and is seeking the $400,000, plus $4 million in punitive damages. Mr. Gitner said the foundation has been unable to carry out some of its charitable work because it had expected to have the money Mr. Haney pledged.
Mr. Haney did not return phone calls this morning.
Mr. Haney was not initially one of the favorites to be awarded the Nationals, but he gained the support of some city officials when he promised to contribute as much as $200 million to pay for cost overruns related to the construction of the Nationals’ new ballpark. He also bid to become the master developer of a massive retail and entertainment district near the new stadium, but he was not selected.
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