It’s been nearly a year since the City and Borough of Juneau demolished the Gastineau Apartments. Now the city is taking the owners to court to recoup some of the $1.4 million spent tearing it down. The apartment building caught fire in 2012, was neglected for years then caught fire again in 2015. The city condemned and demolished it.
The land is vacant while a lawsuit is pending against owners Camilla and James Barrett, who missed several deadlines to repair the property or demolish it themselves.
City Attorney Amy Mead said Wednesday that the Barretts should be held personally liable for repaying the city.
“The cost of the demolition far exceeds the current value of the property,” she said in an interview. “So in order for the CBJ to recover the funds that were spent in abating the public nuisance it would have to look outside the property.”
At issue before Juneau Superior Court Judge Philip Pallenberg is the legal concept of “piercing the corporate veil.” It would allow legal action against the Barretts, who controlled Gastineau Apartments LLC.
Defense Attorney Robert Spitzfaden had argued that the Barretts should remain shielded from liability. But the judge noted that the defendants had allowed their limited liability corporation to be dissolved after missing filing deadlines with the state.
“It’s clear that the Barretts were not always clear to observe the formal legal requirements of their LLC,” Judge Pallenberg said from the bench.
The judge rejected the defense’s motion for summary judgment. The lawsuit is headed for trial scheduled for June.