Wednesday, 27 May 2015
Last updated 3 min ago
Jul 30 2014 | 7:47am ET
Real-estate brokerage Corcoran Group has sued Jana Partners’ Barry Rosenstein, claiming it was cut out of his $147 million deal for an East Hampton, N.Y., estate.
Corcoran last week filed suit against Rosenstein and the sellers of the 18-acre waterfront property, alleging that its Tim Davis had been hired as the exclusive agent to sell the home in January—and had negotiated a $155 million deal for the home—before the sellers struck their agreement with Rosenstein.
Corcoran is seeking up to $8.82 million—roughly the amount saved by the sellers by going with Rosenstein.
The brokerage said it had “structured the deal and was awarded the listing three months before the sale, but was excluded from the transaction.” It added that the sellers “willfully” negotiated “in secret” with Rosenstein.
According to the lawsuit, Rosenstein initially offered $75 million and then $125 million for the property, telling Corcoran that their asking price was too high. The price he eventually paid set a record for a U.S. residential property.
Corcoran accuses Rosenstein of having “conspired” with the sellers to “avoid the brokerage fee.”
“This dispute is between the sellers of the property and a broker claiming to represent them,” a Rosenstein spokesperson said. “Mr. Rosenstein, as the buyer, should not be a party to the complaint and we are confident the court will see if that way as well.”
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by partcipating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…