PITTSBURGH — A judge has ruled in favor of AmeriServ Trust in its multimillion dollar lawsuit against the federal government.

The suit stems from VA Butler Healthcare’s canceled 20-year lease with Westar Development to build a new health care center at Deshon Woods.

According to AmeriServ Trust attorney Michael Shiner, AmeriServ Trust will seek $8.5 million in damages.

“It could still end up more than that,” Shiner said. “That was the amount we demanded in the complaint.”

VA Butler Healthcare awarded the lease to Westar in May 2012. In 2013, AmeriServ Trust and Financial Services Co. provided a $7.8 million loan to finance part of the building to Westar.

Leading up to the loan, AmeriServe Trust had the government and the developer sign an agreement assuring the certainty of the lease.

However, after it was discovered that Westar Development had misrepresented itself, and Westar’s Robert Berryhill had been indicted on construction-related fraud charges on an unrelated project, the VA ended its agreement with Westar.

In 2015, the VA entered into a new contract with Cambridge Healthcare Solutions at a site in Center Township. That is when AmeriServ Trust sued the government for a breach of contract.

“The fact that we as the plaintiff were able to get judgment on the pleadings is extraordinary,” Shiner said. “Despite the government’s attempt to deny the reality they clearly told us that the lease was valid and they knew we were relying on them saying that lease was valid.”

The Justice Department declined to comment.

Both parties were to file a joint status report by today that addresses a plan and schedule for further proceedings, including proceedings regarding damages caused by the breach.