The result
- The Wagner Law Group won a $2.5 million breach-of-contract verdict for client CMG against Fresno County.
- The fight was over the UMC building — a 33-acre former hospital campus in southeast Fresno.
- CMG agreed to buy and redevelop the property; the County backed out and kept CMG’s deposit.
- A trial confirmed the County broke its deal — and had to pay for it.
When a government agency signs a deal and then walks away from it, the private party left holding the bag often assumes there’s nothing they can do. There is. The Wagner Law Group just proved it — winning a $2.5 million verdict for our client, Construction Management Group (CMG), against the County of Fresno over the County’s decision to abandon the sale of the old UMC hospital building.
What happened
Back in 2019, CMG agreed to purchase the University Medical Center (UMC) building — a 33-acre campus in southeast Fresno — for about $4 million, putting down a $500,000 deposit and planning to redevelop the site, including hundreds of new housing units. It was exactly the kind of project that turns an aging public property into something useful for the community.
Then, in 2021, the County terminated the deal — and, as CMG argued at trial, did so to chase a higher sale price elsewhere, all while holding onto CMG’s deposit. The County later sold the building to a different developer in 2025 for roughly $6 million. CMG was left out of the project it had committed to and financed — and out its deposit.
The verdict
Rather than accept the County’s decision, CMG took the case to trial with The Wagner Law Group — and won a $2.5 million judgment. The result sends a clear message that a public entity can’t simply tear up an agreement when a better offer comes along and expect no consequences.
As firm attorney Nicholas “Butch” Wagner put it, the case was about what happens when a board of supervisors tries to “make deals with other people’s money.”
Check out the stories from the Fresno Bee and GV Wire for more!”
Why this verdict matters
Two things stand out. First, government entities are bound by their contracts just like anyone else — and when a city or county reneges on a deal a private party has relied on, that party has the right to be made whole. Second, results like this happen because a firm is willing to actually try the case. Public agencies have deep resources and often bet that the other side won’t go the distance. We do.
Frequently asked questions
Can you sue a county or city for breaking a contract in California?
Yes. Public entities can be held liable for breaching their agreements. These cases involve special procedures and deadlines (the Government Claims Act can apply), so it’s important to involve a lawyer early.
Can a seller just keep my deposit if they cancel the deal?
Not necessarily. If the party that terminated was the one that breached, keeping the deposit can itself be part of the damages you’re owed — as the outcome here reflects.
Why did this go all the way to trial?
Government entities often contest liability aggressively and count on a private party settling cheap. Reaching a fair result sometimes requires the willingness and ability to try the case.
What kinds of disputes does the firm handle beyond injury cases?
The Wagner Law Group handles complex civil litigation, including contract, real estate, and development disputes — including cases against public entities. Contact us to discuss yours.
In a contract or real estate dispute with a public agency?
The Wagner Law Group has recovered over $300 million for our clients and isn’t afraid to take the City, the County, or any well-funded opponent to trial. Talk to us about your case for free.
Reporting on this case: GV Wire. This post is attorney advertising and is provided for general informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. Prior results do not guarantee or predict a similar outcome in any future case; every case is different and depends on its own facts.