Developer Harry Macklowe has triumphed in a legal battle this week with investor Carl Icahn over $60 million Icahn claimed Macklowe owed him relating to an acquisition agreement back in 2006.
According to Reuters, Icahn filed suit in New York State Supreme Court against Macklowe after he allegedly backed out of a joint bid with Icahn for Reckson Real Estate Investment Trust. Icahn claimed that the contract between Icahn’s Meadow Star and Macklowe’s WH Rome Partners required that Macklowe deposit $600 million in a joint account in November 2006, during the time that the partnership was bidding for the REIT. Macklowe didn’t deposit the funds, Icahn argued, and as such owed Icahn $60 million under the contract’s failure-to-deposit provision.
Macklowe, however, claimed that their lenders on the project, Citigroup and Deutsche Bank, were requiring that they put more than the estimated $1.2 billion in the deposit account, which had voided the provision.
Roger Netzer, an attorney who represented Macklowe, told Reuters: “It was an honor and a delight to represent Harry Macklowe. We’re glad Mr. Macklowe’s conduct was vindicated.” [Reuters]