In a high-stakes legal battle, a California-based developer of affordable housing has accused a property seller of breach of contract and fraud, threatening the future of a significant housing project in San Jose. The complaint was filed by 1271 E. Julian St., L.P. on February 18, 2025, in the Superior Court of California, County of Santa Clara against YI'S First Seed, LLC.
The plaintiff, 1271 E. Julian St., L.P., is a limited partnership focused on developing affordable housing units in high-cost areas like San Jose. They allege that YI'S First Seed, LLC engaged in deceitful practices during an escrow agreement for the purchase of real estate at 1271 and 1279 E. Julian Street. According to the complaint, the plaintiff had invested millions into design work and secured tax credits for the project but was met with demands for an unjustified price increase by YI'S First Seed when they sought an extension to close escrow due to pending approvals from government agencies.
The lawsuit details how JULIAN was forced into paying an additional $1 million under duress after YI'S First Seed refused to extend escrow without it. "YI knew that JULIAN could not legally close without final federal approval," states the complaint, accusing YI'S First Seed of leveraging this knowledge to extort money from JULIAN. The developer further claims that YI allowed existing buildings on the property to be damaged during escrow and failed to remediate hazardous substances as required by their agreement.
JULIAN's legal filing also includes accusations of fraud against YI'S First Seed. The plaintiff alleges that YI falsely claimed over $1 million in costs associated with extending escrow but refused to provide any evidence or documentation supporting these claims. An independent investigation by JULIAN reportedly revealed that these expenses were significantly overstated.
Seeking justice through the court system, JULIAN is requesting damages exceeding $10 million along with punitive damages aimed at deterring similar misconduct by others in the future. Additionally, they seek specific performance from YI'S First Seed—prohibiting them from canceling escrow—and demand compensation for attorney fees and other related costs.
Representing 1271 E. Julian St., L.P., attorney Christopher P. Warne has taken up this case under Case No. 220459224 before the Superior Court of California in Santa Clara County.