State Supreme Court rules Corcoran "negligent" with e-mails in Bklyn condo sale
November 16, 2009 06:00PM By David Jones
Corcoran Group CEO Pamela Liebman, who was not named in the suit
Judge Charles Ramos, in a 31-page opinion, ruled that the Manhattan-based brokerage was "grossly negligent" for failing to preserve and turn over electronic evidence revealing that Corcoran agents canceled appointments with prospective buyers on rainy days to hide a previously known problem with water leaks.
Corcoran was ordered to pay more than $35,000 in legal fees and court costs accumulated by the plaintiff, while the case continues on to a full trial. Lawyers for the plaintiffs said the ruling creates a new legal precedent for preserving electronic evidence in legal cases.
"This case adopts the basic federal standard of the obligation to preserve electronic evidence into the state court system," said Jay Itkowitz, attorney for the plaintiffs. "Under federal case law, once you know you're about to get sued, the obligation to preserve or protect electronic evidence comes into play."
The case involves a December 2007 lawsuit by Harold Einstein and Jennifer Boyd, a married couple with two young children, who bought a three-bedroom, 1,679-square-foot apartment at 357 4th Street in Park Slope for $1.295 million in June 2007. The four-unit building was developed by a firm called Ultimate Realty, led by Joseph and Jeanette Sabbagh and Isaac Mishan.
Corcoran said in a statement: "We disagree with the discovery ruling and intend to file an appeal at the appropriate time. This case is still in the discovery phase and no decision has yet been made on the merits of the case."
The plaintiffs said they notified the sponsors about the leaks, and they obtained an engineer's report note that the building had been constructed using Wonderboard, which is used in construction areas known to have water leaks, according to the lawsuit. There were other alleged defects found in the building, including mold, the accumulation of carbon monoxide in the boiler room and other problems. The engineer estimated that it would take more than $880,000 to fix the construction defects in the building, however the sponsors refused to cure the problems or buy back the apartment, the suit says.
The couple later moved out and into a rental apartment, but they are still being held responsible for the mortgage and common charges.
Attorneys for Ultimate Realty were not immediately available for comment.
Margolin & Pierce, the attorneys for Corcoran, were also admonished by the judge after he warned them to "read the riot act" to their clients." However, Itkowitz said it is unlikely the defendant's firm would be held responsible for any legal costs.
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Comments
Anonymous
They would sell anything, just like any other big firm. Thieves....
Comment #1 Posted By: Anonymous 11/16/09
Anonymous
Nobody is surprised by this ruling. Ethics trickle down from the top, and from top to bottom, The Corcoran Group has been long overdue for a make-over. They've been accused and convicted of everything from racial steering to concealing evidence, so what next?
Comment #2 Posted By: Anonymous 11/16/09
Anonymous
Anyone know the name of the Corcoran agents who sold them the place? It would be good for the rest of us to know who to stay away from.
Comment #3 Posted By: Anonymous 11/17/09
Anonymous
Adam Pacelli and Ann Marie Gatz are listed as the brokers.
Comment #4 Posted By: Anonymous 11/17/09
Anonymous
By next week they will be on, TopAgentGuide.com.
Comment #5 Posted By: Anonymous 11/17/09
Anonymous
Why didnt the buyers have the home inspected by an engineer/architecht/home inspector prior to closing on the home?
Comment #6 Posted By: Anonymous 11/17/09
Anonymous
"...they are still being held responsible for the mortgage and common charges." Gee, and who else should be held responsible for the mortgage? Albert Einstein?
Comment #7 Posted By: Anonymous 11/17/09
Anonymous
Shame on Corcoran and the developers for not stepping up to the plate and admitting their cover-up when the place began flooding. The honorable thing to do would have been to offer to return the buyers their down payment. Now look at all the unnecessary grief, time, and expense they have caused all the parties involved. After being "strung-up", I hope they have to pay dearly.
Comment #8 Posted By: Anonymous 11/17/09
Anonymous
Adam Pacelli the once famous agent who listed one hanson place, 145 park Pl, etc. etc. etc. This article is just so shocking! And Pam Liebman well.. you and Frank Percesepe are just so honorable. Corcoran Cares....what a wonderful idea to have your own agents contribute to your own crimes against the Brooklyn communites. P-R-I-C-E-L-E-S-S. Pam lives in Joisey and Frank lives in Manhattan but "they" know Brooklyn like noone else does. Brooklyn wake up! You are being so conned. "Live who you are" Pam and Frank = Beavis and Butthead.
Comment #9 Posted By: Anonymous 11/17/09
Anonymous
Why can't these people just stay out of the news? This agency has a history repeatedly of corruption. Top down management is the definitive reason. Hopeless.
Comment #10 Posted By: Anonymous 11/18/09
Anonymous
#8: Shame ON Corcoran? Nah - Shame IS Corcoran.
Comment #11 Posted By: Anonymous 11/18/09
Anonymous
The correct name of the company (especially when Barbie was running it) is Whorcoran.
Comment #12 Posted By: Anonymous 11/18/09
Anonymous
When Barbie ran it at least it was on its last legs of respectability now you have a bunch of incompetents and they desreve exactly what they get. Live Who You Are.
Comment #13 Posted By: Anonymous 11/18/09
Anonymous
Being brokers, (pinheads) most of you don't get it. The legal point here is that the cut-rate mediocre minds that the big firms cheap out on retaining for bargain rates to serve as their corporate counsel told them that they could purge their emails. This ruling says they have no such right. Nor, can they put the onus on the individual sales agents. They are the broker license holders under Article 12A, and they are the responsible parties. Pity how judges won't let the Pam Leibermans or the Jerry Speyers make up their own rules. But, they can always hire some schmuck lawyer to agree with their wishful thinking and then gnash their teeth when writing their memoirs. Hire dumb lawyers get dumb counsel. Penny wise, ton foolish. The question will be will the Darwin Award go to the Largest Firm or to all of them? Read the law, dummies, it says save all matters pertaining to transactions. That includes emails. Stupid. The rest of your name calling is stupid too, if you miss the point.
Comment #14 Posted By: Anonymous 11/18/09
Anonymous
We live in a brownstone building in Prospect Heights renovated by the same developers (Ultimate Realty), which was also sold to us by the same brokers (Adam Pacelli and Ann Marie Gatz), and we have had major construction and water issues throughout the building as well. Glad to know we are not alone.
Comment #15 Posted By: Anonymous 11/18/09
Anonymous
#14 thank you for your legal commentary. Too bad the fact that youofferit for free on this blog indicates yourusefuljness to society. Thank you, pin head broker ;)
Comment #16 Posted By: Anonymous 11/18/09
Anonymous
Check out Liebmans fangs in her picture. Nuff said. Adam Pacelli, Gary Dipersia, Corcoran Cares, Racial Steering, wow I would be proud if I worked there .
Comment #17 Posted By: Anonymous 11/19/09
Anonymous
Once again another lawsuit that involves the cheats, liars of agents at the so called top brokerage in NYC-CORCORAN. Babs what do you think of what has happened to your old firm now that you are no longer the Queen it is going down down down.
Comment #18 Posted By: Anonymous 11/19/09
Anonymous
Ba bye ADAM & ANN MARIE....time to find another line of work after all this real estate ain't gonna be your thing!
Comment #19 Posted By: Anonymous 11/19/09
Anonymous
Guess what. Corcoran's competitors are no angels. What does this say for the REBNY rules of ethical conduct? One must pause and think. As an analogy, many times the small, well managed independent banks are much better than the large banks. As we know, this is a case in point. Bottom Line: analyze the knowledge of your broker.
Comment #20 Posted By: Anonymous 11/20/09
Anonymous
OMG! Go to YouTube and type in 357 4th Street to see Unit #1 flooding. I just watched it. It's unbelievable!!! Adam Pacelli and Anne-Marie Gatz should have their licenses revoked. Today.
Comment #21 Posted By: Anonymous 11/20/09
Anonymous
Just saw the clip on You Tube. I guess its time to "Live Who You Are". Time to up the "Corcoran Cares" donations again Brooklyn. This time. however, try to get your managers to kick in;)
Comment #22 Posted By: Anonymous 11/20/09