<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 9, 2000
GRACE DEVELOPMENT, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
COLORADO 0-25582 84-1110469
(STATE OR OTHER JURISDICTION (COMMISSION FILE NO.) (IRS EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
1690 CHANTILLY DRIVE
ATLANTA, GEORGIA 30324
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(678) 222-3030
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NOT APPLICABLE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
<PAGE> 2
ITEM 5. OTHER EVENTS
On July 13, 2000, Benjamin J. Holcomb filed a lawsuit in the Superior
Court of DeKalb County, Georgia, for which the Registrant acknowledged service
on August 9, 2000, naming Grace Development, Inc. and Louis Friedman as
defendants. The lawsuit seeks to enforce a purported settlement agreement
between Holcomb and Grace, or alternatively to recover damages for fraud,
negligent misrepresentation, and breach of contract against Grace and for fraud,
negligent misrepresentation, and tortious interference with contractual
relations against Mr. Friedman. The lawsuit seeks a judgment of at least
$150,000 under the purported settlement agreement or at least $500,000 under the
alternative damages theories. Grace and Friedman deny the allegations in the
lawsuit and intend to defend the lawsuit vigorously. The Registrant has agreed
to pay Mr. Friedman's legal fees, as incurred, and Mr. Friedman has agreed to
repay to the Registrant such fees should he be found liable in the lawsuit.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GRACE DEVELOPMENT, INC.
(Registrant)
/s/ James Blanchard
--------------------------------
James Blanchard
President
Date: August 18, 2000
2
