Business Journal: Red Cross Sues United Way
Two large non-profits in Sacramento are in court in a building dispute.
Wednesday, July 18, 2007
The United Way California Capital Region, which serves Sacramento, has been sued in federal court by its neighbor and tenant, the local chapter of the American Red Cross. The two are in adjoining buildings off South Watt Avenue, and the Red Cross leases its space from the United Way. The Red Cross contends it has the right to buy half of its building for $1, according to lease terms that were amended many times over the years. The Red Cross defaulted on that lease at one point. It also abandoned one floor it couldn’t afford. The United Way says that right no longer exists.