Being a third wheel can be just as bad in a business partnership as it is on a date, as Gary Barnett was recently reminded.
The Extell Development founder sued two business partners over loose ends from the $6 million sale of two Brooklyn properties, PincusCo reported.
In July 2011, Barnett, Yoel Weber and Yoel Leonorovitz formed 186-190 21st St LLC, with each member owning a one-third interest in two office buildings at 186 and 190 21st Street in Greenwood Heights. Three years later, the trio entered into an agreement about how the properties would be owned and managed.
But in June 2015, when Weber and Leonorovitz, the managing members, sold the two properties, Barnett was never informed, according to his lawsuit.
The buyer was 21st Development Group LLC, according to the deed.
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Barnett also claimed that Weber and Leonorovitz failed to wind up and liquidate the company, as required by the operating agreement. The three partners had agreed that the company would automatically dissolve in the event of a sale.
Instead, Barnett said, Weber and Leonorovitz took control of the sale proceeds and maintain control of the financial operations to this day.
The dissolution of 186-190 LLC also affects the status of 4101 Owners Co. LLC, a company formed to own and manage property at 4101 1st Avenue in Sunset Park. Barnett, Weber and Leonorovitz entered into an agreement in December 2014 affirming the former LLC as the sole member of the latter one.
With the first company allegedly dissolved, the second would also have to be dissolved, according to state law.
Barnett is asking the court to rule that both LLCs were liquidated and appoint a trustee to wind up the affairs of both companies.
Attorneys for Barnett didn’t immediately respond to requests for comment. Attempts to reach Weber and Leonorovitz were unsuccessful.