Gladstone’s libel claim against Heiberger capped at $800K, down from $100M

Madison Equities chief claims Town founder defamed him

New York /
Jun.June 01, 2017 09:00 AM

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.”


Related Articles

arrow_forward_ios
Michael Stern and Walker Tower unit 15B (JDS, Google Maps)
Michael Stern’s Walker Tower pad sells for 24% under ask
Michael Stern’s Walker Tower pad sells for 24% under ask
Homebuilding is largely responsible for the increase in construction spending. (Getty / Photo Illustration for The Real Deal)
Construction spending hits new record in January
Construction spending hits new record in January
The person behind the prank website is still anonymous. (Getty)
Phony website falsely claims REBNY cancels rent
Phony website falsely claims REBNY cancels rent
A Columbus Circle apartment once owned by Tom Brady and Gisele Bundchen  went into contract last week, helping the Manhattan luxury home market finish February on a high note. 551 West 21st Street on the right. (Photos via Compass, Getty, Foster and Partners)
Manhattan luxury market has best month in six years
Manhattan luxury market has best month in six years
(iStock/Illustration by Kevin Rebong for The Real Deal)
These are real estate executives’ worst worries for 2021
These are real estate executives’ worst worries for 2021
Richard Lampen and Howard Lorber (Vector Group)
Calling all founders: Howard Lorber’s Vector Group launches VC arm
Calling all founders: Howard Lorber’s Vector Group launches VC arm
15 West 47th Street, 48 West 48th Street and 151 West 46th Street (Google Maps, Getty)
Here’s what tenants are paying at ELO’s Diamond District properties
Here’s what tenants are paying at ELO’s Diamond District properties
Bryan Cranston and his California beach house (Getty, Realtor)
“Breaking” news: Bryan Cranston lists eco-friendly SoCal beach pad
“Breaking” news: Bryan Cranston lists eco-friendly SoCal beach pad
arrow_forward_ios

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

Loading...