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The Real Deal Los Angeles

Developer Neil Shekhter must cough up $6M for AEW’s legal fees

Los Angeles judge said she would rule in favor of his opponent
May 09, 2017 12:30PM

Neil Shekhter and a rendering of NMS Properties’ Wilshire & La Jolla tower at 6401 Wilshire Boulevard (Credit: Urban Land Institute, Steinberg Architects)

A Los Angeles judge indicated that she would deny Santa Monica developer Neil Shekhter’s bid to avoid paying $6 million in fees to capital management firm AEW, following a legal battle between the two companies.

The $6 million is related to sanctions imposed on Shekhter for allegedly forging a document key to the 2014 suit, which centered around control of nine Westside multifamily properties, including luxe apartment developments in West Hollywood, Santa Monica and Culver City.

Last year, Shekhter was ordered to relinquish control of the assets in addition to paying for AEW’s $6 million legal fees.

The decision is just the latest in the saga between Shekhter and AEW. In the 2014 suit, Shekhter and his firm NMS accused AEW of reneging on terms allowing NMS to buy out AEW’s stake in a joint venture.

AEW then countersued, alleging that Shekhter forged documents and violated the terms of their joint venture agreement. [LAW360] — Subrina Hudson