Developer sues over Herald Towers conversion
The developer responsible for converting the Herald Towers on 34th Street in Manhattan into condominiums is suing the owner of the building for breach of contract — even after the two parties reached an agreement last year that was supposed to keep the matter out of court.
Developer Ziel Feldman of FD Herald Towers LCC claims that building owners Joseph Jerome and Morris Bailey tried to illegally get out of a contract to sell the residential portion of the building to Feldman’s company.
With the real estate boom, the developer claims, the owners cancelled the contract so they could reap the benefits of higher real estate prices themselves.
Although the matter was settled out of court last year, the developer recently filed an amended complaint after the owners allegedly did not abide by the settlement. The amended complaint, filed in New York Civil Supreme Court, seeks well over $100 million in damages as well as the transfer of the title.
The developer has already entered into sales contracts with 124 families for condos in the 692-unit conversion at 50 West 34th Street.
The lawsuit leaves the fate of the 124 contracts uncertain, but according to lawyer Sheryl Jassen, who is not involved in the case, the dispute should have little effect on the buyers. Mark Walfish, attorney for the plaintiff, also believes the buyers have no cause for concern. He said that when his client is “vindicated in court, the families will be able to proceed with their purchases.”
Quick end not in sight for former Corcoran broker denied client list
The Corcoran Group, which is being sued by a former broker for preventing her from accessing information on her company computer, was recently denied a motion to reargue the case for summary judgment, a procedure that would resolve the case without trial.
The trial, which was set to take place in November 2005, was adjourned until January after the plaintiff, Sarit Shmueli, failed to show up in court for medical reasons. The case in New York Civil Supreme Court has yet to return to trial as lawyers on both sides have been exchanging motions.
The dispute revolves around an incident that occurred in 2002, when Shmueli was denied access to client lists on her company computer after she was fired from the brokerage. Corcoran executive vice president Tresa Hall called Shmueli into her office in March of that year and dismissed Shmueli from her contract, supposedly partly for cursing in the office, according to court documents.
Shmueli claims she should have access to the client lists she put together during the time she worked at the firm. Corcoran maintains that information on the computer belongs to the firm because the computer itself belongs to the company.
The decision highlights the issue of what information brokers can take from firms when they are fired, according to lawyers. The parties are due back in court this September.
Developers Group and Corcoran trade ongoing lawsuits
Lawyers continue to exchange motions in ongoing lawsuits between Elan Padeh, the Developers Group project marketing firm he founded three years ago, and the Corcoran Group.
The suit began when Padeh left the Corcoran Group in 2003 to start his own firm. The Brooklyn-based broker alleges that his former employer owes him for unpaid commission promised to him in an oral agreement.
Corcoran denies that it owes Padeh commission over any agreement. Following Padeh’s suit, Corcoran fired back by filing a separate yet related suit against the Developers Group in 2004.
In its suit, Corcoran claims that the Developers Group illegally stole its contract to market the Arches at Cobble Hill, a condo conversion of St. Peter’s Church at 397-399 Hicks Street in Brooklyn.
The cases are being handled in New York Civil Supreme Court. The court, which dismissed four of Corcoran’s claims, has given the green light to Corcoran to pursue its claim that the Developers Group illegally interfered in the Arches conversion. The case has yet to go to trial as lawyers have been arguing over what documents the Developers Group should be forced to produce pertaining to the project.
Barbara Corcoran seeks to put an end to Trump suit
Lawyers for Barbara Corcoran, who is suing Donald Trump over unpaid commissions, recently argued for summary judgment in an attempt to resolve the case without a trial. Corcoran’s lawyer, Richard Seltzer, does not expect a decision on the motion for a few months.
Corcoran is suing for $1.3 million in commission allegedly owed to her for brokering a deal for the sale of the Penn Yards, land and apartments at the foot of the Upper West Side owned in part by Trump.
Trump claims that he does not yet owe Corcoran any money, as the commission was contingent on him receiving money from a third party. Seltzer points to a provision in the contract that requires that the commission be paid now because Trump sold a “substantial portion” of his interest in the property.
This is not the first time the two real estate giants have met in court. Corcoran was awarded $2 million for unpaid commission from the same project in a 1996 lawsuit against Trump. The deal took place in 1994. When asked if this case would set any important precedents, Seltzer said it would not, but the moral of the story is, “It doesn’t matter how big you are, courts enforce contracts.”