Judge OKs $42M settlement by LeFrak, Battery Park City tenants

Tenants had accused LeFrak of neglecting heating repairs at Gateway Plaza

TRD New York /
Mar.March 31, 2020 01:15 PM
Richard LeFrak with Gateway Plaza at Battery Park City (Credit: LeFrak by John Lamparski/WireImage; Olnick Organization)

Richard LeFrak with Gateway Plaza at Battery Park City (Credit: LeFrak by John Lamparski/WireImage; Olnick Organization)

A judge has approved the roughly $42 million settlement between the LeFrak Organization and tenants at a Battery Park City complex.

New York State Supreme Court Judge Melissa A. Crane signed off on the settlement Sunday, determining that it was “fair, reasonable and adequate,” according to court documents.

The class-action suit, filed in 2014, accused a LeFrak-controlled entity of neglecting heating repairs at Gateway Plaza, a six-building, 1,712-apartment residential complex in Lower Manhattan. LeFrak had agreed to a three-part benefits package with the tenants late last year.

Tenants blamed a lack of repairs at Gateway Plaza for outside air flowing freely into their apartments, forcing them to endure frigid temperatures during the winter and scorching heat during the summer. They attempted to mitigate this with duct tape, plastic sheeting, towels and pillows, according to the law firm they hired, Newman Ferrara.

Tenants initially sought $100 million, but the settlement ultimately was $10 million in cash and rent abatements, $13 million in contractual rent increase limitations and $18 million to $20 million for repairs that were largely finished by August 2017, according to court documents.

LeFrak admitted no wrongdoing in the settlement. Representatives for the real estate firm declined to comment, as did Lucas Ferrara, the tenants’ attorney.


Related Articles

arrow_forward_ios
730 Park Avenue (Google Maps, Wikipedia)

British aristocrats sue to quit Park Ave purchase

British aristocrats sue to quit Park Ave purchase
16 Sutton Place (Credit: Google Maps)

Sutton Place co-op in turmoil over terrace fees

Sutton Place co-op in turmoil over terrace fees
(Credit: iStock)

Sibling rivalry: Alan Jemal calls Steven’s allegations “false and ridiculous”

Sibling rivalry: Alan Jemal calls Steven’s allegations “false and ridiculous”
SL Green CEO Marc Holliday and the Daily News Building  at 220 East 42nd Street (Google Maps; SL Green)

SL Green sues Chetrit over $35M deposit for scuttled Daily News deal

SL Green sues Chetrit over $35M deposit for scuttled Daily News deal
Greystar probed tenants’ “character,” “reputation,” “rental history,” lawsuit claims

Greystar probed tenants’ “character,” “reputation,” “rental history,” lawsuit claims

Greystar probed tenants’ “character,” “reputation,” “rental history,” lawsuit claims
Scott Mollen and 45 Park Place (45 Park Place; Herrick)

Cultural center linked to El-Gamal fights against 45 Park foreclosure

Cultural center linked to El-Gamal fights against 45 Park foreclosure
Clockwise from left: Bronx housing court at 1118 Grand Concourse, Governor Andrew Cuomo, Judge Lawrence Marks, New York Supreme Court at 60 Centre Street (Getty; Google Maps; Wikipedia; New York State Courts)

Attorneys find ways to “eject” tenants without Housing Court

Attorneys find ways to “eject” tenants without Housing Court
Noah Syndergaard and 116 Hudson Street (Getty, Google Maps)

Mets’ Noah Syndergaard sued for abandoning Tribeca penthouse rental

Mets’ Noah Syndergaard sued for abandoning Tribeca penthouse rental
arrow_forward_ios

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

Loading...