The ruling released on Feb. 21 is just the latest round in theprocess which dates back several years. According to court papers,the battle began in 1997 when Wien & Malkin, LLP took steps toremove Helmsley-Spear, Inc. as the managing agent of 11 New YorkCity properties, involving "the operating entity tier of eightproperties and three partnerships with single tiers which controlthree properties." Wien & Malkin was the representative anddesignee of ownership interests in the buildings, provided legalservices such as drafting leases and performed administrativetasks. As the court papers state, Peter Malkin, chairman of Wien& Malkin, requested that the partners in 200 Fifth AvenueAssociates, Fisk Building and Lincoln Building Associates"authorize him to terminate Helmsley-Spear without cause and retaina new managing agent." In August 1997, three of the partnershipsvoted to remove Helmsley-Spear without cause, the papers add. Inreturn Helmsley-Spear got a stay and on Sept. 8, 1997, the SupremeCourt granted its motion to compel arbitration. In March 2001, thearbitration panel denied Wien & Malkin's request to removeHelmsley-Spear as managing agent for cause or without cause. Inresponse, Helmsley-Spear moved to confirm the award as Wien &Malkin moved to vacate it. An Appellate Division subsequentlyfound, by a 5-to-0 vote, that the arbitration panel erred in makingits decision. Helmsley-Spear then appealed that ruling.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.