Massey Knakal partner dispute sent to arbitration
September 02, 2009 11:00AM By Adam Pincus
Broker Timothy King (left) is suing Paul Massey's firm Massey KnakalTimothy King, a former COO with Massey Knakal, sued the brokerage in July 2008, alleging among other things that the company was poorly run, was lending money to itself improperly and made false statements on tax filings.
But those allegations had a slim chance of holding up in court, Brooklyn Supreme Court Justice Carolyn Demarest said in her ruling issued Monday, and instead she sent the case, including charges, to arbitration.
The move to arbitration, sought by Massey Knakal, appeared to be a tactical win for the firm, attorney Darren Oved, a litigation partner with law firm Oved & Oved, said.
Justice Demarest "not only gave the defendants a victory by moving the litigation to a more private forum, but also affirmatively stated that, 'plaintiff had failed to demonstrate a sufficient likelihood of success on the merits,' which is not a statement that arbitrators are likely to ignore," Oved said. His firm is not involved with the litigation.
King, now a principal with Brooklyn sales and leasing firm CPEX Real Estate, declined to comment, citing the ongoing case.
Paul Massey, CEO of Massey Knakal, said, "Ending a partnership is never easy and we wish the best to Tim building a leasing business in Brooklyn."
King became a partner of the Brooklyn office in 2002 and was given a 10 percent share of that entity. Paul Massey and company chairman Robert Knakal own 70 percent of the Brooklyn entity, while other partners hold the balance, court records indicate.
In 2002, King was the manager of the Brooklyn office, and was then promoted in 2004 to COO for the entire citywide brokerage, based in Manhattan. After a forced, but paid, leave of absence in 2006, he returned as co-manager of the Brooklyn office, but was fired in February 2008, court papers say.
The lawsuit he filed in June 2008 was a so-called derivative suit, meaning King as a shareholder in the company was suing on behalf of all shareholders who are allegedly being harmed by the company's actions.
Within 90 days of termination of employment, company bylaws say a former employee must sell his shares. King's share was valued at about $770,000, but he did not accept that sum, the judge wrote.
"Defendants contend that the sole purpose of the [lawsuit] is to put pressure on them to improve their buy-out offer. Such contention has not been denied by [King]," Demarest wrote. King has argued in previous court papers that the firm's poor management made it difficult to determine the true value of his shares.
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance or advertisements. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
Tim ought to go back to cleaning buildings.
Comment #1 Posted By: Anonymous 09/02/09
Anonymous
I thought Brian Leary was involved in this litigation also. I always though Brian was a good guy but he must be a wacko to get mixed up with a clown like King.
Comment #2 Posted By: Anonymous 09/02/09
Anonymous
Tim never was successful when we worked together at Filmore and I see his track record hasn't changed.
Comment #3 Posted By: Anonymous 09/02/09
Anonymous
I thought he worked for a carpet cleaning company? Carpet-Rite?
Comment #4 Posted By: Anonymous 09/02/09
Anonymous
Massey's the cleanest shop in town. King had no chance to convince anyone. Sour grapes and a chip on the shoulder.
Comment #5 Posted By: Anonymous 09/03/09
Anonymous
Don't give up on MK, King! You know who they are. No class. No God. Don't waste your time reading their comments. It's not worth it!
Comment #6 Posted By: Anonymous 09/03/09
Anonymous
Not successful at Filmore, you can't be serious! King wrote the book on commercial real estate in Brooklyn from that office.
Comment #7 Posted By: Anonymous 09/03/09
Anonymous
The creation of the mk brooklyn office by king was an unqualified success. From nothing, to the biggest money maker in the entire company
Comment #8 Posted By: Anonymous 09/03/09
Anonymous
Brian Leary is the Prince of Business in Brooklyn having owned and run businesses of his own for 20 years in New York, successfully, with Dignity and Professionalism! He joined Massey Knakal and in a 5 year period HE built a real business for them. Currently he is in the process of building a real business at CPEX Real Estate.
Comment #9 Posted By: Anonymous 09/03/09
Anonymous
Isn't Paul from Boston and Bob from NJ? Do they know where Faltbush Avenue is? Better check the GPS..
Comment #10 Posted By: Anonymous 09/03/09
Anonymous
In my opinion, Brian Leary must be a do-do bird if he is partner's with King. Everything King does reflects on Leary and does not reflect well.
Comment #11 Posted By: Anonymous 09/08/09
Anonymous
I think Leary is a fool.
Comment #12 Posted By: Anonymous 09/08/09
Anonymous
Leary and King deserve each other.
Comment #13 Posted By: Anonymous 09/08/09
Anonymous
Indeed Leary and King deserve each other! They're both tough and nboth had the guts to open their own business when others go belly up! And by the way. King takes MK to arbitration no matter what others have to say, You guys, are wasting your time ...
Comment #14 Posted By: Anonymous 09/09/09
Anonymous
To bad they couldn't just reach a settlement. The story is boring, and both sides know the opinion of the other side. Work it out and clean up the rep of real estate.
Comment #15 Posted By: Anonymous 12/02/09
MyMerry
The site describes the product in full, one of the best in the world!
Comment #16 Posted By: MyMerry 02/19/10
Anonymous
MN should sue king for all the IP he stole from them when he quit.
Comment #17 Posted By: Anonymous 03/09/10
Anonymous
Correct . There should be a law against it .
Comment #18 Posted By: Anonymous 03/15/10