The Bowery Hotel on the Bowery between East 2nd and 3rd Streets, in lower Manhattan, New York City, opened in 2007. Photo credit: Beyond My Ken
Richard Born, owner of the Bowery Hotel, and father of the boutique hotel, is being threatened with a $50 million lawsuit brought from his partner Gerald Rosengarten.
State Supreme Court Justice Shirley Werner Kornreich, presiding over the case, is not happy with Born’s behavior. She described some of his actions as “inexcusable” and “unacceptable,” referring to his delaying the case for close to nine months and flooding the court with a tsunami of paper work: more than half a million pages of documents, some of which were actually junk mail that has nothing to do with the case.
Rosengarten accuses Born of leaving him out of a deal to sell the penthouse suite of the Bowery Hotel, and a few other apartments at the top of the hotel. He is also claiming that right after he filed his lawsuit in April, 2014, Born began to withhold payments due him from his 12 percent stake in the hotel.
As of now the case seems to be leaning towards Rosengarten. In May a state judge told Born to pay Rosengarten for his share of equity in the hotel, which he says is about $1.5 million. Now the court has once again ruled against Born, stating that he deliberately avoided handing over information about the case in the form of email addresses and electronic communication, which he was told to do.
“Suffice it to say that the problems are material, pervasive and inexcusable,” Justice Kornreich writes. “Such behavior is unacceptable in the Commercial Division” of the state’s supreme court, she added.
When Born did finally get around to producing the information he handed over 500,000 pages, which the judge called a “document dump” and “inexcusable.” Justice Kornreich angrily said that some of the documents were “junk mails” with no value whatsoever to the case.
Mr. Rosengarten said that he is happy so far with the rulings of the court, but he would like to reach a settlement with his partner before a trial ensues.
“Richard is taking the position, because of his money, that he can squeeze me to the point of submission,” Rosengarten said about his partner. “I will not let that happen.”