Los Angeles Angels owner Arte Moreno has been stuck with some bad contracts in his life.
Moreno’s Angels had famously signed Albert Pujols to a ten-year deal worth $240 million. Then there was Josh Hamilton, whose 5-year, $125 million contract was seen as one of the worst free agent signings in baseball history.
But now Moreno is seeking to get out of an early exit from a $34 million real estate contract.
Moreno and his wife backed out of buying a penthouse at Arthur Zeckendorf’s 520 Park Avenue just days before they were set to close in 2019. The couple cited concerns about noise from the neighboring mechanical room. Zeckendorf sold the unit to another buyer in 2022.
But Zeckendorf sued the Morenos in 2022, seeking $10 million for their refusal to close. The Morenos fired back, countersuing in federal court for $8.5 million— the amount of their deposit.
After two years, the case is finally heading to trial.
A federal judge denied a motion for summary judgment, a legal move allowing the judge to make a ruling without trial. Zeckendorf recently hired new counsel.
“We are dedicated to enforcing defendants’ compliance with their contractual obligations and committed to securing an exceptionally favorable outcome for the Zeckendorf family,” said Terrence Oved and Darren Oved of Oved & Oved.
An attorney representing the Morenos did not return a request to comment.
The dispute centers around the alleged noise from the equipment room and whether it infringed on the Morenos’ “quiet enjoyment” of the condo.
The Morenos initially went into contract to buy the penthouse unit in 2017, putting down an $8.5 million deposit with the rest to be sent over at closing.
The couple said they expressed concern about the sound coming from the tank and pump system during one visit. The Zeckendorf Group agreed to take all measures to ensure the Morenos would have “quiet enjoyment” of their unit. The closing date was extended to January 2019.
At that point, the Morenos alleged that the Zeckendorf Group still had not fixed their problems. The developer performed a sound test, but allegedly did so while the tank and pump system were not operating, according to the lawsuit. The Morenos then declined to close on the purchase.
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The Zeckendorf Group alleged that the Morenos sought to manufacture a breach of an agreement. The Morenos then threatened the developer with litigation, using a lawyer “with a documented past of utilizing ‘over-the-top’ litigation tactics,” according to Zeckendorf’s court filing.
The 35-unit building Robert A.M. Stern-building was completed in 2018. Its buyers include former Ultimate Fighting Championship owner Frank Fertitta and billionaire investment banker Ken Moelis.