Buyer of $147M Hamptons estate says seller lied about Corcoran’s involvement

Hedge fund billionaire Barry Rosenstein is also suing over unwanted publicity

New York /
Feb.February 19, 2015 02:45 PM

Billionaire hedge-funder Barry Rosenstein, who holds the record for the country’s priciest home purchase with a $147 million East Hampton megamansion, is taking the sellers to court, alleging that they lied about the Corcoran Group’s involvement in the deal. Corcoran sued Rosenstein as a result of the deception, he alleges.

Corcoran sued Rosenstein and the sellers in July, claiming the sellers selected it as a broker on the transaction and then cut it out of the final deal, depriving it of an $8.8 million commission. Rosenstein was eventually dismissed from the suit, which is still pending against the sellers.

The oceanfront property features 18 acres of landscaped gardens and a mansion built within the last ten years and designed by the former owner, architect Andrew Gordon, who inherited the property from his partner, Christopher Browne of investment firm Tweedy, Browne Company. Both men have since passed away.

In Rosenstein’s complaint filed Tuesday in Manhattan Supreme Court, he sides with Corcoran and alleges that the sellers, a group of estates representing 60 Further Lane’s deceased owners, pulled the wool over his eyes and misrepresented that they had not dealt with any brokers, despite having previously directed some of his inquiries to Corcoran broker Tim Davis.

These alleged misrepresentations led to Rosenstein being sued and having to foot a legal bill of $250,000 before he was dismissed from Corcoran’s suit, according to the complaint, which also states that there was a provision in the sale contract that specifically guaranteed the parties would pay each other’s legal fees if there turned out to be litigation from brokers claiming to be involved on either side.

“Rosenstein knew that the size of the transaction would be a magnet for litigation by brokers who believed they had any basis to demand a commission. Therefore, he bargained for a broad indemnity guarantee in the purchase agreements,” the complaint states.

However, Rosenstein claims he has since tried to recover his legal costs from the sellers, and has been rebuffed.

He believes Corcoran has a legitimate claim, elsewhere stating that “there is no question that defendants breached [the agreement not to deal with brokers] by ‘dealing with’ Corcoran.”

Rosenstein is also claiming that the sellers breached a non-disclosure portion of their contract by releasing his name to various brokers and the press, causing his purchase to be widely reported in several media outlets, which he described as “negative publicity” for his family. Rosenstein had hoped to remain anonymous through the use of LLCs in the sale process.

Rosenstein and his counsel, Matthew Dontzin, David Fleissig and Jason Kolbe of Dontzin Nagy & Fleissig, weren’t immediately available for comment.


Related Articles

arrow_forward_ios
East Hampton Town Supervisor Peter Van Scoyoc and 395 Pantigo Road in East Hampton (EHamptonNY.gov, Zillow, iStock)
East Hampton Town officials vow affordable housing action
East Hampton Town officials vow affordable housing action
East Hampton Moves to Limit Access to its Airport (iStock, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
East Hampton Airport to limit access from noisy aircraft
East Hampton Airport to limit access from noisy aircraft
21 Muchmore Lane in East Hampton, LI and  East Hampton Mayor Jerry Larsen (Google Maps, East Hampton Village NY Proud City)
Dispute stalls East Hampton’s $2.8M community preservation fund purchase
Dispute stalls East Hampton’s $2.8M community preservation fund purchase
313 Three Mile Harbor Road in East Hampton (Out East)
Hedge funder Heath Freeman buys East Hampton restaurant for $4M
Hedge funder Heath Freeman buys East Hampton restaurant for $4M
442 Further Lane in East Hampton and Peloton CEO John Foley (Out East, Getty)
Peloton CEO is buyer of $55M East Hampton estate
Peloton CEO is buyer of $55M East Hampton estate
Battle royale over East Hampton Airport rages on
Battle royale over East Hampton Airport rages on
Battle royale over East Hampton Airport rages on
33 Eastville Ave, Sag Harbor, NY (Google Maps)
East Hampton pursues affordable housing dev for former Baptist church
East Hampton pursues affordable housing dev for former Baptist church
12 Koala Ln, East Hampton, NY and Peloton CEO John Foley (Zillow, LinkedIn)
Peloton CEO John Foley lists East Hampton home for $4.5M
Peloton CEO John Foley lists East Hampton home for $4.5M
arrow_forward_ios

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

Loading...