Trump Suffers Resounding Defeat As Court Dismisses All His Claims
Challenging 2005 Sale of Riverside South Properties For A Record $1.76
Billion
NEW YORK, July 28 LAWFUEL — A Manhattan judge has dismissed all
of Donald Trump’s challenges to the 2005 sale of Riverside South properties
by the Hudson Waterfront Partnerships for a record $1.76 billion.
In a decision issued Thursday, New York State Supreme Court Justice
Richard B. Lowe III dismissed Trump’s lawsuit claiming that the Hudson
Waterfront Partnerships, in which Trump is a limited partner, should have
obtained more for the properties on Manhattan’s West Side. Justice Lowe
also rejected Trump’s contention that the Limited Partnership agreements
Trump signed in 1994 allow him to unilaterally withdraw any of his monies
from the Hudson Waterfront Partnerships before 2044.
In a detailed 42 page analysis of the twenty separate causes of action
advanced by Trump in his lawsuit, the Court termed Trump’s allegations
“unpersuasive,” “conclusory” and “without merit.” Calling it
“counterintuitive,” the Court rejected Trump’s position that the record
$1.76 billion obtained for the properties was “an artificially low price,” noting it was “contradicted” by “22 appraisal reports, from two prominent
appraisal firms” demonstrating that the properties “were sold for
approximately $188 million more than the most recent appraisals.”
“The decision is a decisive loss for Trump,” said Jonathan Lerner, a
member of Skadden, Arps, Slate, Meagher & Flom LLP, who represents the
Hudson Waterfront Corporations. Mr. Lerner added that “The Court’s
extensive legal analysis appears bulletproof on appeal. We are currently
reviewing our clients’ options to recover all the damages inflicted by
Trump’s dismissed lawsuit and Trump’s improper attachment of the Riverside
South proceeds that was vacated last year.”
The Court also rejected Trump’s contention that he was entitled
immediately to a pro rata share of the proceeds from the sale.
“Trump contended that even if he lost his lawsuit, he could simply
withdraw all his money from the Partnerships,” said Michael Gruenglas,
another Skadden Arps partner. “In addition to dismissing all his challenges
to the sale, Justice Lowe’s decision firmly establishes that the
Partnerships’ assets need not be distributed until 2044.”
Barry Gross, a representative of the Hudson Waterfront Corporations,
noted that the proceeds from the sale have already been invested in the
purchase of the landmark Bank of America building in San Francisco and a
Manhattan office tower at 1290 Avenue of the Americas.
“We have moved ahead to reinvest the proceeds in very attractive
properties in New York and San Francisco,” said Mr. Gross. “We are pleased
with the Judge’s ruling.”
The single claim in Trump’s suit that survived was Trump’s allegation
that he had not been afforded a full opportunity to review the
Partnerships’ books.
Note: A copy of Justice Lowe’s decision (Manhattan Supreme Court Index
Number 602877/05) is available upon request to bliff@arztcomm.com.
