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BatteryPark.TV obtained the actual legal complaint of the Class Action lawsuit brought by Gateway Plaza residents against the owners, LeFrak, and the BPCA. It has not been previously reported that the BPCA was also dragged into this, which is significant.
Over the past decades, LeFrak has been offered cash from the BPCA to make the essential infrastructure upgrades to Gateway, and LeFrak has pocketed the proceeds without making the necessary repairs. Over the last few months, when the Gateway tenants began making noise and generating bad press, the negations between LeFrak and Gateway began again.
With this being an election year for Governor Cuomo, and the BPCA being controlled by his appointees, the Class Action could be perfectly timed for maximum impact. Also up for re-election is State Assembly Speaker Sheldon Silver, who has publicly acknowledged that his office is trying to work out a between the BPCA and LeFrak.
The six reliefs being sought in the lawsuit are:
A. Against Defendants, jointly and severally, in the amount of the overpayment in electric charges that are a direct result of Defendants’ breach of the warranty of habitability established by New York Real Property Law §235-b;
B. Against Defendants, jointly and severally, in the amount of any rental profits from avoided capital improvement costs, ground lease subsidies, tax payment subsidies, and continuous rent increases during the time of breach in the warranty.
C. Against Marina Towers in the amount of any profits earned by Marina Towers that are a result of the overconsumption of electricity caused by Defendants’ breach of the warranty of habitability established by the New York Real Property Law §235-b;
D. Monies in the sum of $100,000,000 (one hundred million) plus-interest for items A-C immediately above.
E. Enjoining Defendants from continuing to breach the warranty of habitability established by the New York Real Property Law §235-b and directing Defendants to take the steps necessary to cure the breach;
F. Against Marina Towers in the amount of its attorneys’ fees, costs and disbursements in an amount to be determined at a hearing or trial; and
G. Granting such other and further relief as this Court deems just and proper.
Click here for the full Summons and Complaint