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By Kristina Pritchett

Dana Point City Attorney Patrick Muñoz announced the city would enter mediation with the Headlands Reserve during the Oct. 18 City Council meeting.

On Aug. 29, the city filed a lawsuit against the Reserve and developer Sanford Edward stating an indemnity agreement was not upheld. Their lawsuit said Edward did not pay for some legal fees and costs incurred by the city while defending legal and administrative claims created by the Headlands project.

When Edward said he saw the city had been overcharging him, he filed an administrative claim, which the city rejected. Earlier this month, Edward filed a counter lawsuit against the city saying the city “fraudulently billed” the developer more than $600,000.

Muñoz said the Council previously entered mediation over the matter on Aug. 26, which he says “was unsuccessful.”

Muñoz added that the city received a renewed request for mediation, discussed it during closed session and agreed to reenter mediation.

“We agree with the Council’s decision to mediate,” Edward said. “We’ve been advocating this from the beginning.”

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