Rushmore developers refuse to give up $16 million in security deposits

October 05, 2010 06:00PM

The Rushmore condominium at 80 Riverside Boulevard

The developers of the Rushmore condominium at 80 Riverside Boulevard — a partnership between Extell Development and Carlyle Realty — are refusing to give up the fight for $16 million in security deposits, blocking the return of the money to 41 condo buyers at the West Side building, despite a Second U.S. Circuit Court of Appeals ruling last week, the Wall Street Journal reported. Stroock & Stroock & Lavan, the law firm holding the disputed deposits in an escrow account, isn’t allowing the money to be returned. An attorney for the Rushmore’s developers sent Stroock a letter arguing that there is “no basis at this time” to release the down payments, a standard procedure that allowed the developers to decide if they want to pursue the case further, sources said. The office of Attorney General Andrew Cuomo, however, also sent Stroock a letter, instructing them to release the funds to the buyers. Richard Cohen, an attorney for a group of buyers, said that his clients will continue to pursue the case, which has been closely followed in the industry at a time when many condo buyers have been trying to escape from contracts that committed them to purchases made near the market’s peak. [WSJ]