Firm Pursues Multi-Million Civil Suit Against Palm Desert's Berger Foundation over Power Project

PALM DESERT, CA — A Palm Desert-based contracting firm is seeking tens of millions of dollars from the H.N. & Frances C. Berger Foundation over an alleged breach in a business arrangement tied to a power supply project, prompting an assertion from the plaintiffs Monday that the civil action is "without merit."

Wired Works LLC, and its constituent business component, Statewide Services Inc., are suing the foundation over its alleged refusal to abide by terms of an agreement initiated as part of Wired Works' consultation on the Cook Street Substation Project in Thousand Palms.

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"Our clients delivered a result that had eluded this project for decades, and they did so at their own expense," plaintiffs' attorney James Bohm of Costa Mesa said. "They secured the approvals that made this project viable. Instead of honoring its commitments, the foundation refused payment and then made statements that damaged our clients' reputations. This case is about accountability and fairness."

Berger Foundation President Michael Rover issued a statement Monday saying the civil action was under review by the foundation's attorneys.

"The foundation contends that the claims are without merit and strongly denies any wrongdoing," according to Rover's statement. "The foundation has a long-standing history of working fairly and responsibly with vendors and contractors. The press release issued by the plaintiffs through a public relations service appears intended to shape a narrative outside the courtroom. We will respond to the allegations through the appropriate legal process, where we are confident the facts will support the foundation's position."

State business filings indicated that Statewide Services Inc. is comprised of general contractors, and Wired Works is a consulting company that launched in April 2024, based at an office on Wildcat Drive in Palm Desert.

The civil suit was originally filed in March but has been amended as recently as last week in Riverside County Superior Court. It's under case management at the Palm Springs Courthouse, and no hearings are set until October. In the meantime, the parties may engage in prospective out-of-court settlement negotiations.

According to the plaintiffs, Wired Works was hired by the foundation in the first half of 2024 to carry out "development work" directly linked to a proposed 100-megawatt substation intended to establish reliable electrical access for the foundation's 1,200-acre master planned commercial project, featuring "hotels, restaurants ... healthcare campuses, a hospital" and other edifices.

The plaintiffs allege that $300,000 was expended and "5,000 hours of labor" were committed to sort out requirements to put the substation project on track and bring it to fruition, culminating in approvals by the Imperial Irrigation District. IID announced in November the Cook Street Substation Project in Thousand Palms had been formally approved by its Board of Directors, which authorized a budget of $39.6 million.

Groundbreaking is set by the start of next year, and completion of the project is likely by the summer of 2028, according to IID.

The plaintiffs said their agreement with the foundation was terminated "following a leadership transition within the foundation."

The plaintiffs allege they weren't compensated for their work, and "inaccurate and damaging statements were communicated to IID and others within the regional development community," damaging their reputations.

The suit cites "lost construction profits" to Wired Works of $40 million to $45 million, as well as "lost smart grid revenues" of roughly $10 million annually.

Along with reimbursement for losses, the plaintiffs are seeking unspecified punitive damages.