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Shlomi Reuveni sues Town for $16M over employment deal
New development exec left firm in December
Shlomi Reuveni, Town Residential’s former managing director of new development, is suing the company for $16.3 million related to a dispute over his employment agreement.
A summons was filed by Reuveni’s legal team last week in New York State Court, records show. While there was no formal complaint attached, leaving the substance of Reuveni’s claims remain largely a mystery, sources said the former executive is wrangling over the terms of a non-compete agreement which would prohibit him from working at a competing firm.
In a statement to The Real Deal, Reuveni said that he’d been forced to terminate his agreement with Town due to the company’s “numerous breaches and other inappropriate conduct.”
“In a desperate attempt to paint a false record, Town has refused to live up to its obligations. I look forward to the full story being revealed in court and am confident I will prevail,” he said.
Town [TRDataCustom] CEO Andrew Heiberger said the decision was made in October that Reuveni’s contract would not be renewed upon its expiration in April 2017 and Reuveni had been informed. He said Reuveni resigned shortly after, having learned of the loss of a new development exclusive at 212 Fifth Avenue.
“Due to the highly competitive and proprietary nature of our business, from the beginning Town took a stance to enforce the non-compete and non-solicitation provisions of our contracts to the fullest extent of the law,” Heiberger said. “The good news is that I have been through this before and always won, but the bad news is that I have been through this before.”
The suit also comes five months after Town settled a similar legal claim with former president of sales Wendy Maitland, who sued for $15 million.
“Now, ironically employing the same attorney as Maitland, he is filing a frivolous lawsuit in an attempt to be released from his contract,” Heiberger said of Reuveni. “The facts are clear, he is owed no money and will likely owe Town millions of dollars.”
Reuveni departed the firm in December, two months after Town named Elaine Diratz, an alumnus of Corcoran Sunshine and Extell Development, as his co-managing director of new development.