PHILADELPHIA—Locally-based ACE American Insurance Co. has filed suit against Triple Five, the developer of the American Dream retail and entertainment complex in East Rutherford, NJ charging that Triple Five “fraudulently conveyed” the land lease on the property in order to skirt a $5.2-million judgment.
The lawsuit, filed in federal court last week, charges that Triple Five that when Triple Five acquired the assets and liabilities of the original Xanadu developer from Colony Capital LLC last summer, the liabilities included a $5.2-million judgment over insurance premiums, according to The Record.
Meadowlands Developer LP, a subsidiary created by the original developer of the project, held the ground lease but stopped paying premiums on workers' compensation and general liability policies in 2010, court papers indicate
According to court papers, the land lease is now held by two affiliates of Triple Five—Meadow ERC Developer LLC and Meadow Outparcels Developer LLC.
The insurer alleges the ground lease was “fraudulently conveyed” from Meadowlands Developer to the Triple Five affiliates “to hinder, delay, or prevent” ACE from collecting the $5.2 million. Spokesmen for Triple Five and ACE declined comment on the lawsuit. See story in The Record.
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