H
arry Macklowe's dispute over 432 Park Avenue is far from resolved. The luxury condo developer had sought to escape litigation with the building's board members over alleged defects, but his efforts have been unsuccessful. Three years of back-and-forth legal battles have yielded a staggering 4 million pages of documents.
The board claims Macklowe breached his fiduciary duty and directed repair work towards a construction firm he owned, which allegedly performed subpar work. However, Macklowe's attorney dismissed the allegations as "baseless." Despite this, Judge Melissa Crane rejected Macklowe's motion for summary judgment, stating that he had squandered his opportunity to resolve the matter.
This decision has significant implications: Macklowe is now stuck in the litigation until a settlement or trial is reached. The case involves dozens of parties and has already produced 28 depositions. The board remains committed to pursuing their claims, with representatives vowing to "continue relentlessly" until the residents are made whole.
The dispute began when the board filed suit against Macklowe and CIM Group in 2021, alleging that the tower's design led to noise and vibrations issues. Macklowe and CIM argued that the building was safe and the claims were exaggerated. The case has been ongoing amidst another dispute between Macklowe and CIM over a $110 million distribution.
Macklowe is also embroiled in a separate issue with CIM, which hired a company to market the foreclosure of his personal units in 432 Park Avenue. Macklowe halted the foreclosure by putting the interests into bankruptcy and has since agreed to try to sell or refinance the units by May next year.
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