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Lawyers battle Joseph Chetrit for unpaid legal bills

Chetrit to TRD: The story is “not worth one line, there’s no issue”

Joe Chetrit doesn’t pay his lawyers, lawsuit
Joseph Chetrit and Schlam Stone & Dolan founders Harvey Stone and Richard Dolan (Getty, Schlam Stone & Dolan)

The lawyers have a problem with Joseph Chetrit.

The law firm Schlam Stone & Dolan claims that Chetrit and his brother Meyer owe over $450,000 in legal bills for their work representing Chetrit in lawsuits against Maverick Real Estate Partners. 

The lawyers said in court filings the balance accrued over several months and they made repeated demands for payments. The attorneys said Chetrit also failed to pay a vendor to access a document database and platform, making their continued representation difficult.

Schlam Stone & Dolan is now seeking to be removed as counsel for Chetrit. 

Reached by phone, Joseph Chetrit said that the story is “not worth one line, there’s no issue.”

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In a follow up email, the normally reclusive Chetrit added, “These items are all being resolved very soon. They already got paid $400,000 or $500,000. So your time can be used for real things and real matters.”

This is not the first time that Chetrit has had issues with legal bills. The New York law firm Stein Adler Dabah and Zelkowitz sued Chetrit last year for unpaid legal work. In January, the law firm secured a judgment of about $200,000 against the Chetrit Group, but has not been able to collect. The law firm is now seeking discovery on Chetrit’s assets. 

In an affidavit, Chetrit argues he was never properly served. He also claims he was overbilled and that the lawyers did not produce results.

Chetrit is among the largest developers in New York City, owning a vast empire of apartments, offices and hotels throughout the U.S. In 2023, Chetrit ranked as The Real Deal’s largest residential developer in New York City with 2,156 units under construction. Chetrit has faced some distress on some of his assets, including a 43-property national apartment portfolio. 

But Chetrit has also moved forward on other projects. Late last year, he secured a $235 million construction loan for a condo project in the Upper East Side.

Last year, the distressed lender Maverick Real Estate Partners foreclosed on a hotel Chetrit was building near Penn Station. Chetrit filed a lawsuit against Maverick, alleging the firm “stole” more than $20 million by seizing control of his 34th Street hotel project. He said Maverick included a set of unreasonable conditions on the auction, designed to scare off potential bidders. 

The lawsuit is still pending. Chetrit may have to find new lawyers to see it, through.

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