The Real Deal New York

Chetrit sues former Hotel Chelsea owners for $4M

March 12, 2013 01:30PM

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Joseph Chetrit, a rendering of the renovated Hotel Chelsea and Stanley Bard

Chetrit Group head Joseph Chetrit is suing the former owners of the Hotel Chelsea, Chelsea 23rd Street Corporation, for $4.15 million in total damages, Curbed reported.

According to filings with the State Supreme Court, Chetrit alleges that both the sellers and  former hotel manager Stanley Bard misrepresented the property — specifically the pricey artwork included in the sale and the state of some of the apartments.

Chetrit purchased the famous bohemian hideaway for $78.5 million in 2011 and is revamping the building; controversial Gene Kaufman is overseeing the design. He is seeking $2.15 million for “non-existent assets” he claims he paid for in the selling price, plus $2 million for punitive damages.

In the lawsuit Chetrit claims that he was “defrauded” and “deliberately lied” to, and that Bard and Chelsea 23rd’s “illicit effort” was “outrageous, fraudulent, shocking to the consequence and deliberate,” according to Curbed.

Over the years, the Hotel Chelsea had received several works of art by its residents. After the sale, some artists returned to reclaim their gifts. For instance,  Arthur Alan Weinstein’s widow reclaimed 22 pieces of her late husband’s collection, valued at about $500,000. Others that reclaimed their art included the Larry Rivers Foundation on behalf of the late Larry Rivers and artist Philip Taaffe.

However, Bard had admitted in writing that Chelsea 23rd never formerly owned the works. [Curbed]Christopher Cameron

  • http://www.facebook.com/profile.php?id=1236677288 Michele Zalopany

    This article is somewhat mis-leading. Joseph Chetrit is suing Chelsea 23rd Street Corp, which is comprised of various share-holders, Stanley Bard being the major shareholder. A few years before the sale, Marlene Krauss, a minor shareholder, wrested control from the Bards, and is responsible for the Hotel being sold. Stanley Bard never wanted to sell the hotel; in fact, his son was also prevented from buying it back, by Marlene Krauss, who wanted, and plotted to sell the hotel from the minute she got her cold hands on it.

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