Bowery Hotel co-owner stuck in legal battle with partner

State judge shot down Richard Born’s attempt to escape the suit

TRD New York /
May.May 19, 2015 12:00 PM

A New York State Supreme Court judge rejected Bowery Hotel co-owner Richard Born’s attempt to get out of a $50 million lawsuit with partner Jerry Rosengarten, who claims Born cut him out of a deal to sell apartments atop the hotel.

Born is the hotelier behind the Maritime, the Mercer, the Greenwich and the Pod, and claims to be the inventor of the boutique hotel. Rosengarten is an inventor himself — he is known for popularizing the “leisure suit” of the 1970s, according to Crain’s.

Rosengarten filed a lawsuit last year accusing Born of refusing to pay him for his stake in the sale of the penthouse suite and several other units atop the Bowery Hotel, and seeking $50 million in damage. He also claims that after he filed the suit, Born stopped paying him for his 12 percent equity stake in the hotel.

Born filed an interpleader action saying that if he acknowledged Rosengarten’s $1.5 million claim for unpaid compensation, it would expose him to further liability — but the judge shot this down.

“This interpleader complaint really leaves me cold,” State Supreme Court judge Charles Ramos said during a recent hearing. “Now, I am not going to start ascribing motivation, because I don’t know what’s going on between the parties, but this really doesn’t meet the definition of an interpleader action at all. It doesn’t even come close.” [Crain’s] — Tess Hofmann

Related Articles

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

Mensur Cekic, Hudson Yards’ director of residences

From private tutors to meditation sessions, inside NYC’s new amenities battle

Lightstone Group CEO David Lichtenstein and Moxy Chelsea at 105 W 28th Street (Credit: Lightstone and Facebook)

Lightstone gave its neighbors $7M to build a hotel. Then the neighbors secretly went to war, suit claims.

Here are the numbers behind Michael Dell’s record purchase of the Boca Raton Resort

Here are the numbers behind Michael Dell’s record purchase of the Boca Raton Resort