The grand opening of Washington Heights’ first hotel wouldn’t be complete without a bit of legal wrangling.
The owners of the soon-to-open Hotel Cliff are being sued for for $19 million for allegedly breaching a sales contract.
Stanley Gestetner, who controls Oitcroyce Hotel Holdings LLC, filed a lawsuit against owner Peter K. Skeadas’ 505 West 181 Associates LLC, claiming that Skeadas backed out of a legally binding sales contract.
Gestentner says he backed out of the deal when he realized that Skeadas had allegedly failed to disclose title defects and extra liens. Gestentner asked for and received back his $1 million deposit from escrow. He says a new oral sales agreement was executed the next month.
Skeadas claims there was never any record of a deposit, and that Gestentner backed out of the sale officially, in writing.