Court tells Harry Macklowe to pay former partner $30M

Appellate division rejects developer's claims in breach-of-contract battle

New York /
Dec.December 24, 2014 01:28 PM

An appellate panel has affirmed a Supreme Court justice’s granting of a summary judgment against Harry Macklowe after a long-running legal battle between the developer and former partner Warren Cole.

The Appellate Division in the First Department also affirmed a $30 million judgment entered by Supreme Court Justice Cynthia Kern against Macklowe himself. Cole worked for Macklowe from 1988 to 1999.

The panel found that Cole retained his 9 percent interest in the partnership because Macklowe did not close on his purchase of the stake, according to the New York Law Journal. Cole claimed that his obligation to sell the stake in 1999 was conditioned upon Macklowe’s setting the purchase price, which Macklowe never did.

“While the [partnership agreement] does not clearly spell out all the mechanics of executing the buy-sell provision, it is implicit that the initial step was Macklowe’s valuation of the partnership interest,” Justice Rolando Acosta wrote in an opinion Tuesday.

The panel rejected Macklowe’s claim that his former partner’s allegations were barred by doctrines of waiver and estoppel in earlier court rulings, according to the paper.

“Cole’s inaction does not raise any issues of fact with respect to defendants’ affirmative defenses because the [limited partnership agreement] imposed no affirmative duty on Cole, even after his employment terminated, to take action to maintain his partnership interest,” according to Acosta. [New York Law Journal]Mark Maurer


Related Articles

arrow_forward_ios
(Engel & Völkers Market Center, 432 Park)
Sugimoto-curated 79th floor at 432 Park quietly hits market
Sugimoto-curated 79th floor at 432 Park quietly hits market
From left: Compass CEO Robert Reffkin, 1 Wall Street and Macklowe Properties chairman Harry Macklowe (Getty; Macklowe Properties)
Macklowe taps Compass to sell 1 Wall Street
Macklowe taps Compass to sell 1 Wall Street
Mort Zuckerman and Harry Macklowe with 510 Madison Avenue (Getty, Google Maps)
Harry Macklowe sues Boston Properties for $30M
Harry Macklowe sues Boston Properties for $30M
From left: Donald Trump (pictured in the 1980s), Steve Ross, Charles Kushner, Harry Macklowe with (inset) Hiten Samtani and Charles Bagli (Getty, Sasha Maslov)
Scoundrels of the skyline: Charles Bagli on the most colorful characters in the real estate biz
Scoundrels of the skyline: Charles Bagli on the most colorful characters in the real estate biz
Harry Macklowe and the GM Building at 767 Fifth Avenue (Getty, Michele Ursino via Flickr)
Harry Macklowe is behind on rent for HQ at GM Building: report
Harry Macklowe is behind on rent for HQ at GM Building: report
From left: G.H. Palmer's Geoffrey Palme, RFR Holdings' Aby Rosen, Macklowe Properties' Harry Macklowe, Thor Equities' Joseph Sitt and Ellicott Development's Carl Paladino (Getty, iStock)
Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
Harry Macklowe, Aby Rosen and Joe Sitt among 6,500+ developers, landlords who got PPP bucks
John Tashjian (center) with Harry Macklowe and 200 East 59th Street (Credit: Emily Assiran Photography)
Life after Macklowe: New sponsor cuts prices at condo tower
Life after Macklowe: New sponsor cuts prices at condo tower
Harry and Linda Macklowe (Credit: Getty Images, iStock)
The Macklowes’ massive art collection nears auction
The Macklowes’ massive art collection nears auction
arrow_forward_ios

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

Loading...