A decade-old New York real estate soap opera — involving, in part, a former executive allegedly biting an ex-business partner — came to a partial close last week. The Manhattan commercial division handed down a ruling last Wednesday in the sprawling legal battle between former United Realty executives Eli Verschleiser and Jacob Frydman. Judge Joel Cohen dismissed three of four counts in which Verschleiser, who was United Realty’s president, alleged that its former CEO, Frydman, committed fraud after a deal between them went south. The rift began in 2011 after Verschleiser and Frydman’s attempt to acquire 866 United Nations Plaza did not pan out. Verschleiser alleged that Frydman had used business entities for personal benefit. The pair then sought to end their working relationship by negotiating a purchase and sale to divide their assets. The agreement turned out to be anything but.
Last Wednesday Cohen dismissed the fraud and conversion claims, leaving one count for breach of contract.
“Our [client’s] successful motion to dismiss means that our [client’s] defenses held water,” Leo Jacobs, Frydman’s attorney, said via email, adding that the remaining claim should soon be resolved in Frydman’s favor.
Media coverage: TheRealDeal