realestate

NYC Landlord Sues Celebrity Tenants Over Damaged Luxury Sublease

Sam and Lara Worthington dispute damages with landlord Eric Steel.

E
ric Steel, the stepson of late Modernist architect Charles Gwathmey, is embroiled in a dispute with his former subtenants, Australian power couple Sam and Lara Worthington. The issue centers around a valuable table designed by Gwathmey, which Steel claims was damaged during their tenancy. The table's estimated repair cost is $86,000, while its value is put at $115,000.

    Steel rented out the Chelsea loft to the Worthingtons for around $30,000 a month and now refuses to return their security deposit. Instead, he's demanding payment of $300,000, citing extensive damage to the table and the unit itself. The Worthingtons, who left the apartment in "near-pristine condition," deny any wrongdoing and claim that Steel is fabricating his claims.

    This isn't the first time Steel has sued a high-profile subtenant over alleged damages. A decade ago, he sued media mogul Arianna Huffington for $275,000, claiming she had wrecked the same table and trashed the place. The suit was settled quickly, but not before Huffington accused Steel of holding onto her security deposit.

    The Worthingtons' lawyer argues that Steel's demands are "demonstrably false" and that he has a history of targeting his tenants for remuneration. They point out that the table's repair estimate is "astronomical" and that Steel should have emphasized its delicate nature to any subtenants.

    Steel's list of demands includes $6,500 for supervision, $21,450 for redoing the floors, and $15,200 for refurbishing metal sinks, shelves, and windowsills. He also claims he lost four months' worth of rent, totaling $120,000. The Worthingtons have offered to pay more than the cost of repairs but refuse to settle Steel's demands.

    The dispute has echoes of a similar case from 2013, when Huffington was sued by Steel over alleged damages to the same table and unit. That suit was settled quickly, but not before Huffington accused Steel of holding onto her security deposit.

New York City landlord sues celebrity tenants over luxury sublease damage.