Condo Developers Sue NY AG, Say Stroock Typo Doesn’t Require Return of $16M
Developers of a New York condo project claim in a federal lawsuit that New York Attorney General Andrew Cuomo violated their due process rights when he ordered them to return $16 million in down payments held in escrow.
Buyers hoping to rescind their contracts are citing an apparent typo in an offering plan prepared by Stroock & Stroock & Lavan, the Am Law Daily reports. The plan said buyers had the right to back out if their closings did not occur by Sept. 1, 2008, the first day of the annual operating budget. The date should have Sept. 1, 2009.
Two-bedroom condos in the 41-story Rushmore building start at $1.4 million, the Wall Street Journal (sub. req.) reports.
The developers, Extell Development and Carlyle Realty Partners, say the date problem was a “scrivener’s error” by a drafting attorney, the Real Deal reports. They also assert they should have been allowed to collect evidence before Cuomo made a decision.
According to the Wall Street Journal story, all offering plans for new condos are filed with the attorney general’s office, which has the authority to settle disputes over down payments. The developers are represented by Boies Schiller & Flexner.
