ROSELAND, NJ-A verdict was recently entered in a dispute arisingfrom the September 2007 sale of the largest multifamily portfolioof properties in New Jersey.

In the case of Westminster Management v. East Coast ResidentialAssociates, Judge Sebastian Lombardi denied a claim by owners EastCoast Residential Associates LP, a partnership of Morgan Propertiesand AIG Global Real Estate Investment Corp., that they wereentitled to receive a $25-million escrow that was established atthe closing of the transaction with sellers Kushner Cos.

Essentially, East Coast Residential asserted that they wereentitled to the escrow--which has accumulated an additional $2million in interest--because the sellers failed to discloseinformation concerning the expenses and personnel involved inoperating the portfolio and that, if known, they would have offeredless than the $1.91-billion contract price to acquire theproperties, explains Charles X. Gormally, co-trial counsel anddirector of litigation at locally based law firm Brach Eichler LLC.Two previous pretrial motions for summary judgment were denied,which led to the Superior Court trial.