AMERICAN LAWYER MEDIA
Most Effective Lawyers: Real Estate Finalists
$16 million judgment for deal gone sour
December 07, 2009
By: Review staff
According to the editors of the Daily Business Review, lawyers recognized in this special project handled the largest SEC receivership in Florida history, fought for the rights of mentally ill prison inmates, got restitution for the victims of the bombing of the USS Cole, secured the reversal of 15 death row convictions, got public financing to move forward for the Florida Marlins’ new home, took on the cause of gay adoption, successfully defended a giant fruit producer from a massive class action and uncovered prosecutorial misconduct.
Attorney Abbey Kaplan took his client from defense to offense in a long-running dispute over a failed real estate deal.
Kaplan, a partner at Kluger Kaplan Silverman Katzen & Levine in Miami, represented Downtown Associates in its suit against New Jersey investor Eli Weinstein and his related companies.
In May, Miami-Dade Circuit Judge Mark King Leban ordered Weinstein to pay $16.2 million in lost profits, interest and attorneys’ fees — a complete turnaround from the case’s start as a suit seeking damages from Downtown Associates.
The win for Kaplan’s clients closes one chapter in the case. But the next step for Kaplan is to collect the judgment from Weinstein, an elusive adversary who has not disclosed his holdings or appeared for depositions.
“I’m guardedly optimistic there’s going to be money at the end of the day, even if it’s not 100 cents on the dollar,” Kaplan said.
Kaplan said he has reviewed financial statements Weinstein submitted to banks showing a “very significant net worth.”
“My gamble is that even if values on his holdings have gone down, they are still significant,” Kaplan said. “If he’s transferred any of his assets, I’ll get them.”
The case opens a window on the frenzied final days of South Florida’s real estate bubble.
In May 2004, Downtown Associates, led by Miami real estate broker Rodrigo Niño, acquired a contract to buy a parking lot in downtown Miami for $22.25 million. Plans for the property included a complex of residential condos, hotel rooms, office space and retail stores.
In August 2005, Downtown Associates agreed to flip the purchase contract on the lot for $46.5 million to Weinstein’s Nexus Development Group — at the time a prominent player in South Florida’s booming market. But Weinstein never came up with the full deposit. By January 2006, the closing date had been delayed three times. Downtown Associates terminated the deal, and Weinstein sued to enforce the contract.
Rather than fight the suit, Kaplan decided to play chicken. He went to court and insisted his clients would live up to their end of the deal if Weinstein would pay the deposit.
“Our position was we had done nothing wrong and that Weinstein was playing games,” Kaplan said. “As soon as Downtown made the decision to consent to specific performance, Weinstein backs off and is left with an empty gun.”
Weinstein and his companies dropped all claims in 2008, and Downtown Associates sued, arguing the speculator’s waffling had caused the firm to lose a possible $11 million in profits.
On May 1, Leban granted a final judgment in favor of Downtown Associates for lost profits of $11 million, accrued interest of $4.5 million, and attorneys’ fees of $618,554.
Weinstein recently hired Aventura attorney Larry Metsch to fight the ruling. Metsch said the case should be decided on the merits.
“It was a frenzy of people signing contracts, and nobody had any money to close these deals,” he said. “We couldn’t close. Downtown couldn’t close. They were in the same business of flipping property as everybody else.”
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AMERICAN LAWYER MEDIA
Most Effective Lawyers: Real Estate Finalists
$16 million judgment for deal gone sour
December 07, 2009
By: Review staff
According to the editors of the Daily Business Review, lawyers recognized in this special project handled the largest SEC receivership in Florida history, fought for the rights of mentally ill prison inmates, got restitution for the victims of the bombing of the USS Cole, secured the reversal of 15 death row convictions, got public financing to move forward for the Florida Marlins’ new home, took on the cause of gay adoption, successfully defended a giant fruit producer from a massive class action and uncovered prosecutorial misconduct.
Abbey Kaplan, Kluger Kaplan Silverman Katzen & Levine
Attorney Abbey Kaplan took his client from defense to offense in a long-running dispute over a failed real estate deal.
Kaplan, a partner at Kluger Kaplan Silverman Katzen & Levine in Miami, represented Downtown Associates in its suit against New Jersey investor Eli Weinstein and his related companies.
In May, Miami-Dade Circuit Judge Mark King Leban ordered Weinstein to pay $16.2 million in lost profits, interest and attorneys’ fees — a complete turnaround from the case’s start as a suit seeking damages from Downtown Associates.
The win for Kaplan’s clients closes one chapter in the case. But the next step for Kaplan is to collect the judgment from Weinstein, an elusive adversary who has not disclosed his holdings or appeared for depositions.
“I’m guardedly optimistic there’s going to be money at the end of the day, even if it’s not 100 cents on the dollar,” Kaplan said.
Kaplan said he has reviewed financial statements Weinstein submitted to banks showing a “very significant net worth.”
“My gamble is that even if values on his holdings have gone down, they are still significant,” Kaplan said. “If he’s transferred any of his assets, I’ll get them.”
The case opens a window on the frenzied final days of South Florida’s real estate bubble.
In May 2004, Downtown Associates, led by Miami real estate broker Rodrigo Niño, acquired a contract to buy a parking lot in downtown Miami for $22.25 million. Plans for the property included a complex of residential condos, hotel rooms, office space and retail stores.
In August 2005, Downtown Associates agreed to flip the purchase contract on the lot for $46.5 million to Weinstein’s Nexus Development Group — at the time a prominent player in South Florida’s booming market. But Weinstein never came up with the full deposit. By January 2006, the closing date had been delayed three times. Downtown Associates terminated the deal, and Weinstein sued to enforce the contract.
Rather than fight the suit, Kaplan decided to play chicken. He went to court and insisted his clients would live up to their end of the deal if Weinstein would pay the deposit.
“Our position was we had done nothing wrong and that Weinstein was playing games,” Kaplan said. “As soon as Downtown made the decision to consent to specific performance, Weinstein backs off and is left with an empty gun.”
Weinstein and his companies dropped all claims in 2008, and Downtown Associates sued, arguing the speculator’s waffling had caused the firm to lose a possible $11 million in profits.
On May 1, Leban granted a final judgment in favor of Downtown Associates for lost profits of $11 million, accrued interest of $4.5 million, and attorneys’ fees of $618,554.
Weinstein recently hired Aventura attorney Larry Metsch to fight the ruling. Metsch said the case should be decided on the merits.
“It was a frenzy of people signing contracts, and nobody had any money to close these deals,” he said. “We couldn’t close. Downtown couldn’t close. They were in the same business of flipping property as everybody else.”
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