McDermott Will & Emery has settled a dispute with its New York landlord over real estate taxes. The law firm went to court in August to compel arbitration with landlord 340 Madison Fee LLC, claiming the amount in dispute might be $16 million or more over the life of its lease.
In its August petition in Manhattan Supreme Court, McDermott said landlord 340 Madison Fee LLC demanded $1.04 million in additional rent based on tax escalation adjustments and charges that the landlord calculated. The firm, which signed a 2005 lease for several floors at 340 Madison Ave., disputed the recalculation of the base tax amount and charges, but said the landlord refused to arbitrate, “thus seeking a multi-million dollar windfall without any adjudication.”
The landlord answered with counterclaim for declaratory relief, alleging McDermott was required to pay the disputed amount prior to demanding arbitration.
Last week, attorneys for both parties signed and filed in court a document agreeing to discontinue all claims with prejudice.
Meister Seelig & Fein partner Stephen Meister, representing the landlord, told the Law Journal the underlying issues were resolved and the parties are not going to arbitration. “Everything has been settled by an amicable agreement,” he said.
A McDermott spokesman also said the matter settled. Frederick Warder, partner at Patterson Belknap Webb & Tyler, represented the firm in the petition.