Stroock & Stroock & Lavan is in a curious position in a dispute between buyers and developers of a 41-story condo project along the Hudson River in Manhattan. Condo buyers who have about $16 million in a Stroock-controlled escrow account want that money returned and claim a one-digit typo in the condo offering documents authored by an attorney at Stroock allows them to get out of their contracts and take back their deposits. The New York state attorney general’s office agrees. In April, AG Andrew Cuomo ordered the developers, a combination of Carlyle Realty Partners and Extell Development, to return the money.
To date, they have not done so, and the buyers have no idea where their money is, according to one buyer’s lawyer. Instead, the developers did something unexpected on Monday: They sued Cuomo, saying he should not have ordered them to fork over the $16 million because Stroock’s error is meaningless and should carry no legal weight, according to The Real Deal, a real estate publication.
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