The potential damages that can be recouped by Robert Gladstone of Madison Equities in his libel lawsuit against Town Residential CEO Andrew Heiberger have been capped at $800,000, down from the original $100 million he sought.
That’s according to filings made Wednesday by Heiberger’s attorneys, in which they expressly denied the accusations made in Gladstone’s March lawsuit.
In the suit, Gladstone alleged that Heiberger had defamed him and his company in a bid to “poison public sentiment” against them. The allegations related in part to an email sent by Heiberger to associates of Madison, as well as to The Real Deal, accusing Gladstone of “cheating,” “stealing” and “scamming.”
The two had been locked in a legal dispute over Town’s dismissal as the exclusive new development agent for Madison’s condo conversion project at 212 Fifth Avenue. That suit was settled earlier this month and the cap on damages in the libel case may have been part of the settlement.
In return, Heiberger agreed to forego any counterclaims or claims against Gladstone, according to a spokesperson for the developer.
A spokesperson for Town previously dismissed the libel claims as “insanity.”
In a statement Wednesday, Heiberger said the reduction in the potential damages was proof that the claims against him were frivolous.
“It’s extortion,” he said. “Now that it has amazingly been reduced by $99.2 million, it is more apparent than ever, I will prevail and Mr. Gladstone will be exposed for what he is.”