casaguy
Senior Member
The same things happen to the rich folk...
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$53.5-million 'attics'
Buyer sues New York's Plaza Hotel over two penthouse condominiums he purchased sight unseen
Reuters and Bloomberg
September 10, 2008 at 4:08 AM EDT
NEW YORK — A buyer of two penthouse condominiums valued at $53.5-million (U.S.) in New York's famed Plaza Hotel says the apartments turned out to be "attic-like" spaces with low ceilings and obstructed views, and he is suing for a refund plus damages.
The apartments' anonymous buyer, who made the purchases sight unseen based on a "high-tech interactive" model, is suing the hotel, developers El-Ad Properties and brokers Stribling & Associates for breach of contract, fraud, deceptive trade practices and negligence.
The buyer, whom local media have identified as Russian financier Andrei Vavilov, is asking for the return of his $10.7-million deposit and an additional $20-million in damages. Mr. Vavilov reportedly planned to combine the units into one space.
"This is a classic bait-and-switch," said Y. David Scharf, the buyer's lawyer. "My client was led to believe that it would receive one of the most luxurious apartments in New York history. It got far less than what it bargained for."
The lawsuit claims that among their other flaws the apartments have small windows and a "hideous drainage grate" on the roof outside the windows.
El-Ad and Stribling & Associates called the suit baseless.
The Plaza overlooks Central Park and has inspired writers such as Kay Thompson, author of the Eloise stories about a six-year-old girl who lived at the hotel, and Neil Simon, who wrote the Broadway play and hit film Plaza Suite. It has been owned by moguls such as Conrad Hilton and Donald Trump and its guests have included Marilyn Monroe, Truman Capote and F. Scott Fitzgerald,
After $400-million worth of renovations, the Plaza re-opened in March as a mixture of hotel rooms and condominiums. The penthouses for sale were advertised as magnificent, "one-of-a-kind" properties.
"Because the purchaser has, for some reason, changed his mind and decided not to close does not alter the facts," said Jay Neveloff, a lawyer for the El-Ad Group. "[These] merit-less allegations are aimed at camouflaging the purchaser's failure to meet his legal obligations to close."
After the buyer refused to close on the apartments, El-Ad Properties declared a default and refused to return the deposit, the lawsuit said.
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$53.5-million 'attics'
Buyer sues New York's Plaza Hotel over two penthouse condominiums he purchased sight unseen
Reuters and Bloomberg
September 10, 2008 at 4:08 AM EDT
NEW YORK — A buyer of two penthouse condominiums valued at $53.5-million (U.S.) in New York's famed Plaza Hotel says the apartments turned out to be "attic-like" spaces with low ceilings and obstructed views, and he is suing for a refund plus damages.
The apartments' anonymous buyer, who made the purchases sight unseen based on a "high-tech interactive" model, is suing the hotel, developers El-Ad Properties and brokers Stribling & Associates for breach of contract, fraud, deceptive trade practices and negligence.
The buyer, whom local media have identified as Russian financier Andrei Vavilov, is asking for the return of his $10.7-million deposit and an additional $20-million in damages. Mr. Vavilov reportedly planned to combine the units into one space.
"This is a classic bait-and-switch," said Y. David Scharf, the buyer's lawyer. "My client was led to believe that it would receive one of the most luxurious apartments in New York history. It got far less than what it bargained for."
The lawsuit claims that among their other flaws the apartments have small windows and a "hideous drainage grate" on the roof outside the windows.
El-Ad and Stribling & Associates called the suit baseless.
The Plaza overlooks Central Park and has inspired writers such as Kay Thompson, author of the Eloise stories about a six-year-old girl who lived at the hotel, and Neil Simon, who wrote the Broadway play and hit film Plaza Suite. It has been owned by moguls such as Conrad Hilton and Donald Trump and its guests have included Marilyn Monroe, Truman Capote and F. Scott Fitzgerald,
After $400-million worth of renovations, the Plaza re-opened in March as a mixture of hotel rooms and condominiums. The penthouses for sale were advertised as magnificent, "one-of-a-kind" properties.
"Because the purchaser has, for some reason, changed his mind and decided not to close does not alter the facts," said Jay Neveloff, a lawyer for the El-Ad Group. "[These] merit-less allegations are aimed at camouflaging the purchaser's failure to meet his legal obligations to close."
After the buyer refused to close on the apartments, El-Ad Properties declared a default and refused to return the deposit, the lawsuit said.
