Months after a bankruptcy judge resolved the fate of The One megamansion in Bel Air by approving an auction sale for $126 million, companies involved with the property continue to file lawsuits.
The latest is from Italian Luxury Group, or ILG, which supplied furniture to the megamansion. ILG maintains offices in Beverly Hills and a showroom in Miami. It recently filed a suit against The One developer Nile Niami for breach of contract and promissory fraud.
The suit alleges that ILG entered into a written settlement agreement with Niami and his companies, such as The One developer Crestlloyd. The agreement stipulated that ILG would be paid $2.4 million in exchange for removing a lien. Also, funds would be due if there was a bankruptcy.
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So far, no repayment has been made, despite a public bankruptcy, the lawsuit alleges. The complaint demands a jury trial where ILG’s money would be recovered, as well as punitive fees and compensatory damages assessed.
ILG had participated in a separate suit against The One developer Crestlloyd earlier this year. However, ILG was represented by a different lawyer. One of the main grievances voiced in the earlier Crestlloyd case was that not every creditor was going to get paid, because the auction sale in March took in much less than the $256 million debt racked up by The One project. During a March hearing, U.S. Bankruptcy Judge Deborah Saltzman said that while painful, everyone involved in The One case had to make concessions to complete the deal and resolve the case.
Nick Campbell of Builders Law Group filed ILG’s complaint. He did not respond to a request for comment. A Niami representative said that the developer and entrepreneur was traveling and had not seen the complaint.
Other suits have been filed against Crestlloyd after the auction sale. In June, a former Niami colleague, Julien Remillard of Inferno Investment, filed a suit which said he is owed $20.9 million. The complaint was filed in U.S. Bankruptcy Court in June.