L
awsuits can shed light on personal vendettas and alleged wrongdoing in the real estate industry. Some cases gain traction on social media before fizzling out. The Real Deal has covered several significant cases with far-reaching implications for the industry. Here are some of the most notable stories involving ongoing, new or settled litigation:
The Alexander brothers' legal woes began when two women sued them under New York's Adult Survivors Act, alleging they were raped and assaulted in 2010 and 2012. More allegations followed, prompting an FBI investigation. The brothers face federal sex trafficking charges and state-level sexual battery accusations.
NAR settles anti-trust allegations for $418 million, agreeing to change its rules on commission splits. Agents in New York were not directly affected but REBNY opted into the settlement as a non-affiliated residential listing service.
Candice Miller, widow of developer Brandon Miller, faced lawsuits from lenders Titan Capital and Donald Jaffe over missed mortgage payments. The Goldmans' family feud escalated in a New York case focused on property appraisals and a Delaware lawsuit related to control of an LLC.
EB-5 investors protested outside Jeff Blau's home, leading him to sue seven Hudson Yards investors for harassment and threats. The lawsuit was discontinued against one investor in October.
Natalia Legg sued Josh Gotlib, alleging he tricked her into relinquishing ownership stakes in Black Spruce Capital through a trust created by her late husband. The case is stayed as some claims are addressed through arbitration.
Rialto Capital Advisors filed over a dozen foreclosure suits against Signature Bank borrowers, alleging defaults totaling $458 million. A borrower sued Rialto and the FDIC for mishandling a loan extension in a "possibly illegal attempt" to fabricate a default.
The LeFrak Organization filed a lawsuit against New York's courts, alleging they are failing to hear housing disputes efficiently. Fortress Investment Group won Cohen Realty Enterprises' equity interest in several assets through a UCC foreclosure auction.
REBNY sued the City Council to block the FARE Act, which forces landlords to pay rental brokers. The law was approved in November and aims to make apartment rentals more affordable for tenants.
