Real Estate and Hospitality

Overview

Friedman Kaplan knows the real estate and hospitality industries well. We represent and advise entities across all segments of these industries - developers, construction companies, hotels and hotel management firms, securitization trustees, special servicers, public companies, investors, families, and condominium boards - in a wide range of litigation, compliance, transactional, and employment matters.

The firm has handled complex commercial and financial litigation in the real estate and hospitality industries, including lender liability, breaches of representations and warranties, and repurchase claims, as well as mortgage-backed securities litigation, compliance and white collar matters (including Foreign Corrupt Practices Act advice), corporate and investment matters, mergers and acquisitions, and executive employment and severance negotiations.

We have a track record of providing exceptional value to our clients through our creative and tenacious approach to both straightforward and more complicated transactions and disputes. The intellectual abilities of our attorneys position Friedman Kaplan to handle even the most complex and technical matters with efficiency and command. From our successful resolution of a series of highly complex contract, tort, and insurance disputes pertaining to the collapse of the 7 World Trade Center building on September 11, 2001, to our representation of the trustee in one of the earliest cases arising out of failed mortgage origination practices, Friedman Kaplan attorneys give our clients an edge in the most significant, unique, and challenging real estate disputes.

Selected Experience

• We represented Silverstein Properties and 7 World Trade Company in a series of insurance, contract, and tort disputes arising out of the collapse of the 7 World Trade Center building on September 11, 2001.

• We represented, as lead trial counsel, a co-owner and co-managing member of a real estate management company, which oversees a portfolio of affiliated properties in the New York metropolitan area, in a AAA arbitration arising out of a “business divorce” between him and his partner.  In their award, issued following a seven-day evidentiary hearing, the arbitrators removed our client’s adversary from the management of the real estate management company, confirmed his removal from the management of several affiliated companies, ordered him to repay funds he misappropriated from the management company, its affiliates, and their investors, and determined that our client was entitled to an award of attorneys’ fees and arbitral fees.

• In one of the first cases to pursue claims against mortgage originators for breaches of representations and warranties, we represented the trustee of a trust holding numerous commercial mortgages in an action against the financial institution that had sold defective loans into the trust.　
• CWCapital Asset Management LLC, in its capacity as special servicer for a CMBS trust, engaged Friedman Kaplan in defense of $200 million in claims brought by the owner of a Manhattan office building that had defaulted on its mortgage and then sued our clients for what it alleged were "predatory lending" practices. Plaintiffs’ claims were dismissed from the bench following oral argument and the dismissal affirmed on appeal. 
• We represented a New York-based real estate company in defeating a motion for a preliminary injunction brought by the former manager of a major hotel in Manhattan which wanted to keep its position following our client’s purchase of the property out of foreclosure.
• We represented a major hospitality group and its directors and officers in litigation in trial and appellate courts in New York and Florida related to the operation of hotels in Miami Beach and corporate transactions, and also concerning a proxy fight and associated lawsuits. The matters settled successfully for our clients.
• We represented CWCapital Asset Management LLC as special servicer in defense of claims by the owner of a Long Island office building that had defaulted on its mortgage, and in pursuing counterclaims for foreclosure and waste for damage caused by the borrower’s failure to maintain the property.
• We are representing Pillar Multifamily Finance LLC and Guggenheim Commercial Real Estate Finance, LLC in defense of allegations that they breached a commitment letter to provide loan financing to a New Jersey residential real estate developer. 
• We provided Foreign Corrupt Practices Act advice to a major real estate developer in connection with its international expansion. We also provided on-site FCPA training to the company’s employees, created the company’s FCPA policies, and provided advice on other compliance matters.
• We represented a real estate and resort company based in Romania in succeeding rounds of equity financings aggregating more than $25 million.
• We represented a major U.S.-based private equity fund in connection with several real estate investments in the People’s Republic of China, including a $20 million acquisition of a stake in a residential real estate developer and a $50 million acquisition of a stake in a commercial real estate developer.
• We represented the CEO of a publicly-traded real estate investment company in negotiations to become non-executive chairman of a second public company.