Broker sues Massey Knakal, Goldman sues Moinian and RCDolner sues Alexico
July 09, 2009 02:45PM By Adam Pincus
S. David Jagarnauth is seeking $184,000 plus interest from Paul Massey's (right) Massey Knakal for the sale of 44-30 Macnish Street in Queens.Broker sues Massey Knakal
An independent broker is suing investment sales brokerage Massey Knakal Realty Services for nearly $200,000 in commission fees for a 66-unit Queens apartment building sold in 2006.
S. David Jagarnauth is seeking $184,000 plus interest from Massey Knakal for the buyer's commission on the $12 million sale of 44-30 Macnish Street in Elmhurst, Queens, in September 2006, a complaint filed July 2 in New York State Supreme Court says.
The lawsuit, with charges including breach of contract and unjust enrichment, comes three years after the sale closed. Jagarnauth's attorney John Desiderio of law firm Adam Leitman Bailey said the broker tried for two years to obtain the payment through phone calls and letters, but was rebuffed.
Paul Massey, CEO of Massey Knakal, said they have put the money aside and conceded a commission needed to be paid. He said the confusion was who was owed the commission and whether Jagarnauth was a licensed broker. It is illegal to pay a brokerage fee to an unlicensed broker.
"From the outset we suspected we owed someone a brokerage fee related to this transaction. We have set aside the money, but there are many questions of fact related to who the buyer was and who the broker was and we hope to resolve those expeditiously," Massey said. He said the parties were attempting to reach a settlement today.
Jagarnauth was included as the co-broker in a 2003 contract of sale for the property but that contract was abandoned. His name was improperly removed from the 2006 sale contract that was ultimately used in the sale, the complaint says.
A person named Sookdeo Jagarnauth was first licensed as a broker in 2003 and is currently licensed, according to the state Department of State. Desiderio said Jagarnauth is a licensed broker.
Massey Knakal brokered the fifth highest dollar volume of sales in New York City last year with $1.3 billion, according to data from CoStar.
Goldman Sachs sues Moinian entity
In another commission-related lawsuit, this time Downtown, Goldman Sachs Group is suing Almah LLC, a Moinian Group entity which owns 180 Maiden Lane, for $3.1 million, according to a July 2 filing in New York State Supreme Court.
Goldman Sachs claims in the breach of contact suit that it is owed the commission fee for finding a new tenant — AIG Employee Services — to occupy its space in 2008.
The finance firm saved the landlord costs related to finding a new tenant, the complaint says, and has not been paid. Moinian Group did not immediately have a comment.
RCDolner sues Alexico Group
In a third lawsuit filed last week, general contractor RCDolner claims developer Alexico Group and other entities still owe it $609,284 — after making a $300,000 payment — for construction and renovation work performed at 951 First Avenue between 52nd and 53rd streets, between May 2008 to March 2009, but has failed to pay.
The developer is building a 161-unit luxury condominium called the Oliver at 959 First Avenue, which includes 951 First Avenue among seven parcels. Alexico Group did not immediately have a comment.
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Comments
Anonymous
Wow!
Comment #1 Posted By: Anonymous 07/09/09
Anonymous
gee, mr messy was never confused before about payng unlicensed agents.
Comment #2 Posted By: Anonymous 07/09/09
Anonymous
Imagine, a guy who sits on the "ethics" committe at REBNY is confused about who his firm sold a building to.
Comment #3 Posted By: Anonymous 07/09/09
Anonymous
Lay off Paul....the other firms ducked comment.. at least he admitted that he was confused.
Comment #4 Posted By: Anonymous 07/09/09
Anonymous
Would it really take 6 years to figure and "issues" before paying a commission. Shame on Massey.
Comment #5 Posted By: Anonymous 07/09/09
Anonymous
Now the broker had to spend money on a lawyer. Massey probably never intended to pay until he was forced to pay.
Comment #6 Posted By: Anonymous 07/09/09
Anonymous
Real Deal--please let us know if Massey pays?
Comment #7 Posted By: Anonymous 07/09/09
Anonymous
Real Deal Interview: 11-3-08 How many times has your firm sued or been sued? We're probably in 15 or 16 litigations either as collection actions or some nominal nonsense at any given time, [but] never anything substantive. NOMINAL nonsense ???
Comment #8 Posted By: Anonymous 07/09/09
Anonymous
Lay off Paul? Paul--why would you torture a broker for 6 years. Maybe he has a family to support. Shame on you.
Comment #9 Posted By: Anonymous 07/09/09
Anonymous
Shameless, Blameless, Clueless Pick one ...
Comment #10 Posted By: Anonymous 07/09/09
Anonymoose
Gang, Please understand I am doing the best I can during these difficult times.
Comment #11 Posted By: Anonymoose 07/09/09
Anonymous
the Queens office of Messy is a cesspool of bad boy behaviour.
Comment #12 Posted By: Anonymous 07/09/09
Anonymous
Big closet.... lots of skeletons, Big Office, Lots of Empty suits
Comment #13 Posted By: Anonymous 07/09/09
Anonymous
Welcome to the wonderful world of NYC real estate.
Comment #14 Posted By: Anonymous 07/09/09
Anonymous
any kool-aid left ?
Comment #15 Posted By: Anonymous 07/09/09
Anonymous
any $ left ?
Comment #16 Posted By: Anonymous 07/09/09
Richard Cranium
Massey Knakal is committed to serving the best interests of our clients at all times, going above and beyond the traditional broker relationship to secure the perfect buyer for a property. To do so, we make it our goal to maximize every property's exposure to the fullest extent, and are willing to co-broke every listing we have, with a 50/50 commission split if a non-Massey Knakal broker procures the buyer.
Comment #17 Posted By: Richard Cranium 07/09/09
Anonymous
From the outset we suspected we owed someone a brokerage fee related to this transaction ??? sounds pretty suspicious to me....
Comment #18 Posted By: Anonymous 07/09/09
dear abby
Paul Dear: some advice. First, take your foot out of your mouth.Secondly, hire a pr person to speak with the press.
Comment #19 Posted By: dear abby 07/09/09
Anonymous
maybe tomorrow it will be Bobs turn to talk with the media. oh wait, every day is his turn....
Comment #20 Posted By: Anonymous 07/09/09
hu bris
can anyone spin this story so it makes sense ? Was Paul having a bad day ? maybe we should hear both sides of the story ?
Comment #21 Posted By: hu bris 07/09/09
in vino veritas
ouch, boys and girls, study this story, for it is a text book example of how not to act. Did the man really say he knew for years there was an issue ? but that they hoped to resolve it today ? was his haste to wrap this up connected to this story being reported ? not his finest hour
Comment #22 Posted By: in vino veritas 07/09/09
Anonymous
Massey Knakal is a piece a trash for doing something like this.
Comment #23 Posted By: Anonymous 07/09/09
Anonymous
please dont malign the whole firm. there are some great folks at the company
Comment #24 Posted By: Anonymous 07/09/09
Anonymous
"From the outset we suspected we owed someone a brokerage fee related to this transaction". I'll certainly think twice before doing a deal with these guys.
Comment #25 Posted By: Anonymous 07/09/09
Anonymous
Massey Knakel and their big friends including Douglas Elliman and Corcoran are all in bed playing dirty together. How many small brokers have they screwed over the years? Please tell me....
Comment #26 Posted By: Anonymous 07/09/09
Anonymous
Brokers in NYC really need to become familiar with/reach out to the federal trade commission. This behavior on the part of many large brokerages needs to STOP. It's unthinkable to steal commission elsewhere, then make up excuses- it's criminal, and shouldn't be tolerated. "Against the law" needs comprehension and action.
Comment #27 Posted By: Anonymous 07/10/09
Anonymous
bob & paul should fire each other, instead, some sacrificial lamb will be slaughtered
Comment #28 Posted By: Anonymous 07/10/09
Anonymous
the credibility gap widens
Comment #29 Posted By: Anonymous 07/10/09
Anonymous
Paul , Just pay the broker.
Comment #30 Posted By: Anonymous 07/10/09
Anonymous
WOW< did they forget to pay their "real deal" bill ? i've nevre seen anything except puff pieces on these guys
Comment #31 Posted By: Anonymous 07/10/09
Anonymous
What happened to all of the Joe Moinian bashing?
Comment #32 Posted By: Anonymous 07/10/09
Anonymous
# 32 Ma comes before Mo, plus folks love to bash a sanctimonious schmuck caught with his pants down.
Comment #33 Posted By: Anonymous 07/10/09
Anonymous
Massey Knucklehead, at it again
Comment #34 Posted By: Anonymous 07/10/09
Anonymous
does this mean REBNY dues will be refunded for the past years. Why are we paying REBNY dues?
Comment #35 Posted By: Anonymous 07/10/09
Anonymous
you pay REBNY dues so Bob & Paul can be hot shots at REBNY
Comment #36 Posted By: Anonymous 07/10/09
Anonymous
stop asking stupid questions and get back to work. get more listings
Comment #37 Posted By: Anonymous 07/10/09
Anonymous
was this property part of a St Vincents package ?
Comment #38 Posted By: Anonymous 07/10/09
Anonymous
not sure about St Vincent but those guys better start lighting some candles and say a few prayers to St Jude !
Comment #39 Posted By: Anonymous 07/10/09
Anonymous
The big firms always get commission agreements and cobrokerage agreements up front. Maybe the little guys should do the same. The forms are probably already on your PC.
Comment #40 Posted By: Anonymous 07/10/09
Anonymous
let he who is without sin throw the first stone. Lighten up everyone and have a great week-end
Comment #41 Posted By: Anonymous 07/10/09
Michael Steinberg
If Massy-K. were owed a commission, would they be so confused!!? Con artists looking for cover. Who can pretend real estate is a gentlemanly business!!??? Only a real phoney!
Comment #42 Posted By: Michael Steinberg 07/11/09
Anonymous
it takes real talent to fake sincerity
Comment #43 Posted By: Anonymous 07/11/09
Anonymous
Adam Leitman Bailey's law firm--please keep us updated on the result.
Comment #44 Posted By: Anonymous 07/11/09
Anonymous
you reap what you sow
Comment #45 Posted By: Anonymous 07/15/09
Anonymous
Do you mean all those "wild oats" are gonna bear fruit ?
Comment #46 Posted By: Anonymous 07/15/09
Anonymous
more like wild nuts
Comment #47 Posted By: Anonymous 07/25/09
Anonymous
Isn't this the second time Massey is in court in 2 weeks ? What's up with those guys ?
Comment #48 Posted By: Anonymous 07/25/09
Anonymous
What are the odds they will be gone by XMAS $
Comment #49 Posted By: Anonymous 07/25/09
Anonymous
ok,its three weeks later, did this poor guy get his $ ?
Comment #50 Posted By: Anonymous 07/28/09
Anonymous
oops,its not 3 weeks. Its three weeks since the story broke, poor guy has been waiting over a year
Comment #51 Posted By: Anonymous 07/28/09
Anonymous
Paul is a stand up guy. He set the money aside. The broker wasnt licensed. If the broker needed the money why did he wait so long to file his case? Clearly the broker is not the most experienced or pragmatic--he called and sent postcards for 2 whole years before he realized he had a problem?
Comment #52 Posted By: Anonymous 07/29/09
Anonymous
Read the article and the comments-- the Broker was licensed which was confirmed. He waited so long as he needed to save money to hire an attorney I assume.
Comment #53 Posted By: Anonymous 07/30/09
his story
george washington thought benedict arnold was swell too
Comment #54 Posted By: his story 08/02/09
Anonymous
Paul is a man of great character and integrity. He would never cheat anyone.
Comment #55 Posted By: Anonymous 08/05/09
Anonymous
Paul has been a mentor to countless brokers in the industry. His reputation is beyond reproach.
Comment #56 Posted By: Anonymous 08/05/09
Anonymous
Paul's management skills have made his firm # 1
Comment #57 Posted By: Anonymous 08/05/09
Anonymous
Paul has led the technologhy revolution in the real estate industry. MKs computerized selling system is in a league of its own.
Comment #58 Posted By: Anonymous 08/05/09
Anonymous
Guarantee they will try to weasel out of this one
Comment #59 Posted By: Anonymous 08/25/09
friend
I personally know the individuals invloved in this transaction - the broker was properly licensed and someone - not saying it was Massey - but some one did remove his name from the contract - the broker has been trying for years to settle this out of court but Massey kept making excuses - seems that the broker was expected to settle for less than 30K on a 184K commissiom that was already cut from 300K
Comment #60 Posted By: friend 08/28/09
friend
also - this publication only contacted massey to comment on this lawsuit
Comment #61 Posted By: friend 08/28/09
Anonymous
Massey did a great job of commenting ! has this been settled yet ?
Comment #62 Posted By: Anonymous 08/28/09
Anonymous
This is not the first time Massey has done this. SHAME ON YOU MASSEY. I have been getting emails from your company, BUT you know what it goes to the GARBAGE. NO confidence in you or your company. Pay the Broker.
Comment #63 Posted By: Anonymous 08/28/09
Anonymous
Shame on you and your company Massey. Pay the Broker. You know the poor guy gave you everything you asked for.
Comment #64 Posted By: Anonymous 08/28/09
Anonymous
Massey You are a BLOOD SUCKING company. Sellers are finally seeing your true colours. I know, I was a Seller as well. Brokers work hard for their commissions, you and your brokers are always back stabbing the smaller brokers. Kuddos to Mr .Jaggernauth.
Comment #65 Posted By: Anonymous 08/28/09
Anonymous
This building was not part of the St . VINCENTS PACKAGE. This building was sold long before. I am a Real ESTATE BROKER and was SCREWED by another broker at Massey. ( names withheld) for now.
Comment #66 Posted By: Anonymous 08/28/09
Anonymous
I would love to know the outcome of this story. I was there once and did not have the guts to fight them.
Comment #67 Posted By: Anonymous 08/29/09
Anonymous
if more people came forward, maybe they would be exposed for what they are
Comment #68 Posted By: Anonymous 08/30/09
Anonymous
I heard from a grapevine, Massey not doing so good. You steal from poor small brokers. Would not be to surprise if you fold in by the end of the year ??????
Comment #69 Posted By: Anonymous 09/04/09
Anonymous
I hope this case is now settled by Massey. It has been too long. (3) YEARS). Please let us know.
Comment #70 Posted By: Anonymous 09/04/09
Anonymous
Massey escallated building values so that sellers can get a lot of money from banks. Some building was not worth half of what they were doing. The FBI should look into all of Massey's closed files, they ought to be investigated NOW !!!!
Comment #71 Posted By: Anonymous 09/10/09
pan dora
what happens when the lid blows off ? too many issues, too many witnesses.....
Comment #72 Posted By: pan dora 09/21/09
Anonymous
Does Massey know the hole his attorny is digging for this company.Bad for business, lets move on from this.I am tired of questions from my buyers.
Comment #73 Posted By: Anonymous 09/23/09
Anonymous
Mr. Massey , Are you aware of whats going on? Are you aware of these comments? Do you realise how it is affecting our business and our Company?
Comment #74 Posted By: Anonymous 09/24/09
Anonymous
Paul, pay the Broker and get on with your life.
Comment #75 Posted By: Anonymous 09/25/09
Anonymous
When the lid blows off ....... What's gonna happen Paul ? I am a former Massey broker : -(.Got news for Jagernauth. Maybe , just maybe I WILL CALL HIM !!!!!!!!!! What do you think PAUL ?
Comment #76 Posted By: Anonymous 09/27/09
Anonymous
when will the bad karma end ?
Comment #77 Posted By: Anonymous 10/11/09