Chetrit sues former Hotel Chelsea owners for $4M

New York /
Mar.March 12, 2013 01:30 PM

Chetrit Group head Joseph Chetrit is suing the former owners of the Hotel Chelsea, Chelsea 23rd Street Corporation, for $4.15 million in total damages, Curbed reported.

According to Filings With The State Supreme Court, Chetrit alleges that both the sellers and  former hotel manager Stanley Bard misrepresented the property — specifically the pricey artwork included in the sale and the state of some of the apartments.

Chetrit purchased the famous bohemian hideaway for $78.5 million in 2011 and is revamping the building; controversial Gene Kaufman is overseeing the design. He is seeking $2.15 million for “non-existent assets” he claims he paid for in the selling price, plus $2 million for punitive damages.

In the lawsuit Chetrit claims that he was “defrauded” and “deliberately lied” to, and that Bard and Chelsea 23rd’s “illicit effort” was “outrageous, fraudulent, shocking to the consequence and deliberate,” according to Curbed.

Over the years, the Hotel Chelsea had received several works of art by its residents. After the sale, some artists returned to reclaim their gifts. For instance,  Arthur Alan Weinstein’s widow reclaimed 22 pieces of her late husband’s collection, valued at about $500,000. Others that reclaimed their art included the Larry Rivers Foundation on behalf of the late Larry Rivers and artist Philip Taaffe.

However, Bard had admitted in writing that Chelsea 23rd never formerly owned the works. [Curbed]Christopher Cameron


Related Articles

arrow_forward_ios
Ira Drukier with the Hotel Chelsea (Getty, Patrick McMullan/Getty)
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel with Ira Drukier and Richard Born (Getty)
Chelsea Hotel reno can resume after housing department drops fight
Chelsea Hotel reno can resume after housing department drops fight
Clockwise from top: David Bistricer of Clipper Equity, Joseph Chetrit a rendering of the Gramercy Square condominium and Robyn Sorid of G4 Capital Partners (Photos via Clipper Equity, Getty, VUW, G4)
Chetrit, Bistricer’s Gramercy Square condo lands $207M loan
Chetrit, Bistricer’s Gramercy Square condo lands $207M loan
The Hotel Chelsea (Credit: Ben Hider/Getty Images)
Chelsea Hotel owner notches court win over work at iconic property
Chelsea Hotel owner notches court win over work at iconic property
110 East 76th Street and Joseph Chetrit (Credit: Google Maps; Sylvain Gaboury/Patrick McMullan via Getty Images)
Joseph Chetrit sells UES townhouse for $25M
Joseph Chetrit sells UES townhouse for $25M
The Chelsea Hotel at 222 West 23rd Street and Ira Drukier (Credit: Google Maps; Drukier by Jared Siskin/Patrick McMullan via Getty Images)
Chelsea Hotel renovation amounted to tenant harassment, city says
Chelsea Hotel renovation amounted to tenant harassment, city says
118 East 76th Street and Developer Joseph Chetrit (Credit: Google Maps and Getty Images)
Manhattan luxury home market off to worst start in seven years
Manhattan luxury home market off to worst start in seven years
Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
Chetrit Group lands $112M refi for Hotel Bossert project
Chetrit Group lands $112M refi for Hotel Bossert project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...