A jury awarded a Tooele land developer and its associated homebuilder $20.7 million in compensatory damages Friday morning after determining Tooele city had breached contractual duties and stalled progress on a large multi-use development.

"A $20 million verdict is obviously a message not only to Tooele city but other cities," said Mark Larson, plaintiff's attorney. "They need to treat their developers fairly and in good faith. I hope Tooele city received that message."

An eight-member jury handed the 3rd District Court judge a verdict recommending that Tooele pay developer Tooele Associates and Perry Homes $5 million for money the companies lost while a court battle dragged from 2003 to 2009.

They also awarded plaintiffs $17.5 million for anticipated future losses between 2009 and 2017.

"This is the biggest verdict of its kind ever awarded in the state of Utah," Larson said.

The developer and city officials agreed on conditions in 1995 for Overlake Development, a 7,500-unit master-planned community. But by 2002 that relationship had become sorely estranged and Tooele Associates filed suit against the city for encumbering progress, possibly due to anti-residential growth sentiment within the city administration. By 2008, the suit was amended with charges that the city slowed or refused to give final inspections, that the city misinterpreted its own ordinances, and that the city failed to develop promised improvements, all of which the jury determined was fact.

Plaintiffs were awarded $22.2 million, but because the jury found the developers had also breached a portion of their contract with the city by failing to complete public improvements, about $1.8 million was subtracted from the plaintiff's damages.

Plaintiffs said Friday's decision in the lengthy legal battle may not mark the end because it is likely the city will appeal.

E-MAIL: jhancock@desnews.com