Who owns valuable Lexington land? Judge issues ruling in lawsuit between Gatton, developer
A federal judge has ruled CM “Bill” Gatton owns land in the Hamburg and Georgetown Road areas worth millions and does not have to continue to work with Haymaker Properties to develop the land.
U.S. District Judge Danny Reeves also ruled Tuesday a lawsuit Gatton filed against Haymaker Properties over a type of legal notice Haymaker placed on properties in Hamburg and Georgetown Road can continue.
Gatton, a long-time University of Kentucky donor, and Tim Haymaker of Haymaker Properties have developed land throughout Lexington for more than 30 years, including Beaumont Centre off of Harrodsburg Road and the now bustling Hamburg shopping area.
Gatton would purchase the land. Haymaker Properties would develop it and Gatton would receive a portion of the proceeds when the land was sold. The agreement was never in writing.
In 2020, Gatton decided to no longer do business with Haymaker, according to court documents.
At issue are three valuable pieces of land.
The first is 27.5 acres near Georgetown Road and Citation Boulevard. That area of Lexington has seen rapid growth in recent years.
Fayette County Property Value Administration records show that undeveloped track is worth upwards of $3.9 million.
Two parcels of land are in Hamburg: 170 acres between Meeting Street and Old Rosebud Road, and a second parcel of 12 acres at the intersection of Sir Barton Way and Winchester Road.
Fayette County PVA records assess those undeveloped lots at upwards of $7.3 million.
Lawsuits
Haymaker sued in late 2020 alleging due to an oral agreement, Gatton was required to continue to work with Haymaker Properties.
In his decision, Reeves said Gatton could back out of the agreement at any time and there was no written contract.
“Haymaker has identified facts that, at best, establish a partnership at will which Gatton was free to dissolve at any time,” Reeves wrote.
Barbara Edelman, a lawyer with Dinsmore & Shohl, said Reeve’s decision showed Gatton owned the land and had no obligation to continue to do business with Haymaker.
“Mr. Gatton bought these properties and paid for them with his own money,” she said. “They never belonged to Tim Haymaker or his company and he never paid a dime to purchase these properties. His claim that the court should give him an interest in them was ridiculous.”
“Mr. Gatton has worked long and hard to earn his good reputation as a fair and honest businessman,” she said. “This is the only time he has ever been sued and it was not only unfair but quite hurtful that Mr. Haymaker, who Mr. Gatton had always treated well, would file these invalid claims. But we believe that the truth always has a way of coming out and that is what occurred in this case.”
After the lawsuit was filed in late 2020, Haymaker Properties filed a lis pendens, a type of lien on the property. Gatton later sued and alleged Haymaker Properties maliciously tried to muddy the title to the properties. Gatton is asking for monetary damages.
A trial in that case is set for March, Edelman said.
A lawyer for Haymaker Properties did not immediately return an email seeking comment.
Gatton is UK’s single largest donor. He donated $20 million for the expansion of the UK student center in 2014. In 1995, he gave $14 million for the Gatton College of Business, which is named after him. The Beaumont YMCA is also named after Gatton.
A native of Muhlenberg County, Gatton has had a long, varied and successful career in car dealerships, banking and real estate development.
On Thursday, UK announced Gatton has donated $5 million to the state’s largest university for a host of new scholarships.
This story was originally published February 10, 2022 at 12:36 PM.
