The Most-Read Real Estate Lawsuit Stories

Lawsuits can reveal personal vendettas, expose alleged malfeasance and even address long-standing issues endemic in the real estate industry. Some complaints saturate social media feeds, only to quietly fizzle out.

In the past year, The Real Deal has covered several consequential cases, many of which could have larger implications for the industry.

Here are some of the most-read stories of 2024 involving ongoing, new or newly settled litigation:

Beginning of legal trouble for the Alexander brothers

Twin brothers Oren and Alon Alexander, and their older brother Tal, were arrested in December on federal sex trafficking charges, accusing the brothers of raping and sexually assaulting more than a dozen women over a decade.

Oren and Alon, along with family friend Ohad Fisherman, also face state-level charges of sexual battery in Florida.

Allegations against the brothers publicly surfaced when TRD first reported two lawsuits filed against Alon and Oren in June. The lawsuits accused the brothers of sexually assaulting two women during incidents that took place in 2010 and 2012. The complaints were filed under the Adult Survivors Act, which temporarily eliminated the statute of limitations for civil sexual assault claims in the state of New York. Less than two weeks later, another woman sued the three brothers, alleging that Tal and Alon raped her at a Manhattan apartment in 2012, and that Oren coordinated and witnessed the attack.

More allegations followed, prompting the FBI to begin an investigation.

NAR taps out of the fight

In March, the National Association of Realtors agreed to pay $418 million to settle anti-trust allegations centered on the organization’s rule that listing agents must offer commissions to buyer’s agents on the multiple listings service. The settlement was finalized in November, but rule changes — which bar agents from discussing commission splits on the MLS — went into effect in August.

Agents in New York were, for the most part, not directly affected by the settlement because the Real Estate Board of New York is not part of NAR. REBNY has, however, opted into NAR’s settlement as a non-affiliated residential listing service and is still negotiating its terms. REBNY’s guidance on buyer representation agreements has drawn some criticism for relying too heavily on legalese.

Lawsuits against Brandon Miller’s widow

Following the sudden death of developer Brandon Miller, his widow faced various lawsuits. In July, Titan Capital sued lifestyle blogger and influencer Candice Miller over missed mortgage payments on her Water Mill home. The bridge lender provided her late husband a $1 million in 2021, secured by their home at 25 Cobb Isle Road. In its lawsuit, Titan sought $829,000 in unpaid principal plus interest on the loan.

Another lender that Brandon worked with, Donald Jaffe, sued Candice in August, demanding that she pay a $3.6 million balance on a $5 million loan.

Goldman family feud

The fight over Sol Goldman’s $2 billion portfolio escalated in a New York case focused on a dispute over the properties’ appraised and in a Delaware lawsuit related to control of a key LLC.

Last year, Steven Gurney-Goldman sued his aunt Jane Goldman, arguing that he should take his late father’s place as a member of an LLC that has a 50 percent stake in Solil Management. A judge in that case ruled in July that Steven doesn’t officially have membership rights, but can exercise such authority in a narrow set of circumstances related to settling his father’s estate and administering his properties. For the full details, check out Rich Bockmann’s cover story from September.

Unhappy EB-5 investors

For months, EB-5 investors regularly surrounded Jeff Blau’s Upper East Side home, at times banging pots and pans and sending threats to his family, according to a lawsuit filed in September. Blau sued seven Hudson Yards investors, alleging that they took pictures of his children entering the family home and threatened to continue such “surprises” until the Related Companies CEO returned their $500,000 investments.

Court documents indicate that in October, the lawsuit was discontinued against one of the investors.

A lost trust

Natalia Legg, wife of the late Oliver Legg who co-founded Black Spruce Capital in 2009, claims her husband’s former partner Josh Gotlib “duped her out of a substantial part of her family’s assets.”

Legg sued Gotlib in January, alleging that he tricked her into relinquishing ownership stakes in Black Spruce and New Amsterdam Property Management through a trust her husband had created for the benefit of his wife and daughter. Gotlib, the trust’s trustee, told Legg that the businesses were losing money and cited that as a reason for transferring ownership stakes from the trust over to him, according to the lawsuit. Meanwhile, Gotlib allegedly knew “that these companies were valuable assets of the trust and expected both entities to generate growing profits.”

A spokesperson for Black Spruce called the claims “demonstrably false, contrived, baseless.”

As of December, the case was stayed as some claims were addressed through arbitration.

Rialto’s legal wranglings

By mid-December, Rialto Capital Advisors fired off more than a dozen foreclosure suits against Signature Bank borrowers, alleging defaults totaling more than $458 million.

One year prior, a partnership between Rialto, Blackstone Real Estate Debt Strategies, BREIT and Canada Pension won a 20 percent stake in the joint venture controlling the failed bank’s commercial loan book.

Much of Rialto’s foreclosure campaign focused on RFR Holding’s Aby Rosen and Michael Fuchs. In December, the firm filed its sixth suit accusing the pair of defaulting on a Signature mortgage or promissory note.

In March, a borrower who owns a Staten Island shopping center filed a lawsuit against Rialto and the FDIC, claiming they mishandled a rudimentary extension of his Signature loan in a “possibly illegal attempt” to “fabricate a default.”

LeFrak’s housing court fight

Entities tied to the LeFrak Organization filed a lawsuit in February against the city’s Office of Court Administration and Civil Court, which handles eviction cases. The landlord alleged that New York’s courts are failing to hear housing disputes in an “efficient and orderly” manner. State law requires the court to set a trial date or hearing in a rent non-payment case three to eight days after the tenant responds to the complaint. The lawsuit alleges that initial court dates are being delayed 60 days or more.

Cohen foreclosure

In November, Fortress Investment Group won Cohen Realty Enterprises’ equity interest in several assets in the largest-ever UCC foreclosure auction. Fortress sued Cohen in March, alleging that the Charles-Cohen led firm defaulted on $534 million in debt tied to a Florida design center, Westchester redevelopment site, New York office tower, Fort Lauderdale hotel and three theaters. Though Cohen sued to stop the foreclosure, Fortress was able to move forward with the auction.

REBNY vs. FARE Act

In November, the City Council approved the Fairness in Apartment Rental Expenses, or FARE, Act, which forces landlords to pay the rental brokers they hire. Tenants have typically been responsible for paying rental broker fees.

The Real Estate Board of New York filed a lawsuit in December to block the law, alleging that it, among other things, violates the First Amendment rights of brokers and landlords because it discourages the publishing of rental listings.