Resolving Disputes in the Real Estate and Hospitality Industries
Kasowitz’s Real Estate Litigation team has successfully handled a wide variety of real estate and hotel-related litigation matters, including partnership and joint venture disputes, contract disputes, breach of fiduciary duty and fraud claims, air rights and development rights disputes, investigations, foreclosures, workouts and other restructurings. We focus on achieving our client’s specific goals, whether by negotiating a resolution, preparing for possible litigation, or litigating a case through discovery and trial.
We regularly represent developers, real estate investment trusts (REITs), borrowers, lenders, institutional and individual investors, majority and minority partners, and hotel owners, operators, and managers.
Our clients include Blackstone Group, Morgans Hotel Group, The Related Companies, DLJ Real Estate Capital Partners, Hilton Worldwide, The Jack Parker Corporation, a joint venture between Atlas Capital Group, The Procaccianti Group and Rockpoint Group, Fremont Realty Group, Fontainebleau Las Vegas Holdings, The Related Group, InterContinental Hotel Group, Fortress Investment Group, SL Green, LaQuinta Hotels, LXR Luxury Resorts and JD Carlisle Development.
111 West 57th Property Owner LLC in prevailing on appeal at the New York Supreme Court, Appellate Division, First Department, which unanimously dismissed claims of breaches of fiduciary duty and constructive trust involving the 90-story luxury condominium located at 111 West 57th Street in Manhattan, brought by AmBase, a former indirect equity investor in the project. The panel also affirmed the cancellation of a lis pendens filed against the property.
BD Hotels and Chelsea Hotel Owner LLC, owners of the iconic Hotel Chelsea, in successfully ending a two-year dispute with New York City’s Department of Housing Preservation Development prompted by a vocal minority of hostile tenants objecting to the redevelopment of the historic hotel. After finding crucial evidence of an HPD exemption in the Department of Building’s files during an on-going trial against HPD -- that HPD had failed to turn over in discovery -- that undercut HPD’s jurisdiction over the building, and after seeking emergency relief from the trial court demanding the immediate dismissal of HPD’s case, HPD conceded by voluntarily dismissing its lawsuit and the Department of Buildings instantly lifted a stop work order that had stalled construction for more than two years.
DLJ Real Estate Capital Partners in securing summary judgment in an air rights and zoning dispute. The New York State Supreme Court dismissed all claims against affiliates of DLJ, the owners of the Eventi Hotel in Manhattan, asserted by neighboring property owner Harmit Realties. The court found that because the Department of Buildings had determined that the Eventi property complies with the New York City Zoning Resolution, DLJ had not breached the parties’ contract concerning the purchase and sale of air rights, and indicated that Harmit, by initiating a Department of Buildings audit of the hotel, may have violated its contractual good faith obligations.
Dismissal of state and federal RICO claims against the developer related to a 90-story tower rising on 57th Street in Manhattan, upheld by the Second Circuit.
Successfully obtained summary judgment against The Sapir Organization, a New York real estate firm, relating to its failure to close a $20 million transaction to purchase property in Las Vegas.
Bridgeton Holdings in successfully securing a complete dismissal of a case pending in the Southern District of New York. The court granted Kasowitz’s motion to dismiss nine of the 12 originally asserted claims against Bridgeton, and subsequently granted Kasowitz’s motion for summary judgment dismissing the remaining claims against Bridgeton for breach of fiduciary duty and unjust enrichment.
Successfully obtained significant preliminary injunctions arising from contract disputes with hotel owners. One preliminary injunction, unanimously affirmed by the New York Supreme Court, Appellate Division, First Department, bars the owner of a large New York City hotel from unilaterally terminating its license agreement with our client. The other preliminary injunction, also unanimously affirmed by the New York Supreme Court, Appellate Division, bars the owner of another large Times Square hotel from unilaterally terminating its hotel management agreement with our client.
Litigation involving the retail leasing of a 750,000-square-foot multi-level shopping center being built at Hudson Yards. Hudson Yards is the largest private real estate development in the history of the United States and the largest development in New York City since Rockefeller Center.
The sale of the Base Village project in Snowmass, Colorado, to a joint venture of East West Partners and Aspen Skiing Company, and an affiliate of KSL Capital Partners, all collectively known as the “Buyer.” Our real estate litigators assisted Related with reaching a settlement with a third party that had filed a lis pendens against the subject property, which was intended to block the sale to the Buyer.
A large breach of contract action relating to the large luxury SoHo Mondrian hotel in New York. The case involved damage claims of over $100 million and was successfully resolved. The case involved novel issues relating to the enforceability of hotel management agreements in light of recent appellate decisions in New York. Kasowitz has represented Morgans in most of its significant commercial litigation in the U.S. since 2012.
A dispute between a former partner and the principal of Stellar Management relating to a multi-billion dollar portfolio of residential and commercial properties located primarily in New York City.
Prevailing on summary judgment, and successfully obtaining the appointment of a receiver and a new hotel operator for the Alex Hotel and Flatotel, in several actions in New York state court to foreclose on more than $300 million of loans secured by the hotels, and to recover on personal guaranties.
An ongoing dispute among various parties involved in the 2014 acquisition of Aman Resorts, one of the world’s leading luxury hotel brands.
Providing strategic advice to and negotiating on behalf of a prominent South Florida real estate developer, as borrower and guarantor, in its workout of seven condominium project construction loans and 11 land loans, including the loans for the ICON Brickell towers and Viceroy Hotel.
Defending owner of the Savoy Hotel in Miami Beach, Florida, against a foreclosure action based on a $39.5 million loan, and counterclaiming for fraud, conspiracy, breach of contract and violations of Florida’s racketeering statute against the foreclosing bank.
Successfully challenging the New York Power Authority’s exercise of eminent domain to take property belonging to a tri-state area real estate developer, and transfer it to Calpine Corporation, a national power company, for its $100 million expansion of an existing power plant.