Dealing with real estate issues in New York is complicated at any time, but when outside factors are weighing it down, it can lead to a unique set of challenges that could escalate into a full-blown dispute that needs legal intervention. With the current health situation, legal disagreements are increasingly common. One concern that frequently arises centers around control and finances. This can impact people who were partners and find themselves on opposite sides of the situation. For these cases, having experienced legal advice from a firm that understands business law and real estate may be essential.
Partners battle over control of Manhattan building
A luxury building is at the center of a dispute between two partners in the real estate business. One partner is accusing the other of taking control of the building as it is struggling financially. The plaintiff is the CEO of his own company. He accuses his partner, who runs his own company, of taking over a bank account with $20 million that was held jointly. He also says information was censored and access to the records and personnel was restricted. The defendant had developed the building more than three decades ago. It is a combination commercial and residential structure and has a parking garage.
The dispute began in 2019 before the health crisis began. As the pandemic worsened, the urgency of the case rose. There is a significant number of vacancies at 35%. The complainant says it needs financial help and restructuring. The sides have made conflicting statements as to their role in overseeing the building. The defendant is reportedly in ill health and the complainant is accused of trying to take over the business in an underhanded way. In the case, the goal is to stop the defendant from making decisions without consulting with the partner. The books would also need to be available to analyze the financial circumstances. Decision-making and the future of the building are also factors in the case. The partners own five other Manhattan properties together.
Experienced legal help is imperative with real estate lawsuits
While commercial real estate is considered a lucrative business, there are often unavoidable challenges that must be addressed. In some cases, negotiation can settle the matter and partners can cobble together a workable agreement to continue a partnership. In others, it becomes contentious. To analyze the issues that are in dispute and seek a resolution in or out of court, having legal assistance that understands real estate and business law can be crucial.