News

Chadbourne Wins Suit for Barclay Brothers over Real Estate Developer Sheldon Solow

Decision Is Expected to Lead to More than $1 Million in Sanctions Against Solow and His Lawyers

July 7, 2005

NEW YORK — Chadbourne & Parke LLP has successfully defended Sir David Barclay and Sir Frederick Barclay, the owners of the Telegraph Group, in a $115 million suit against them and others in New York State Supreme Court over a major commercial building in Manhattan. The court dismissed the suit in its entirety and, in addition, awarded sanctions against both the plaintiff, developer Sheldon Solow, and his law firm.

The Barclays, principals of Spartan Madison Corp., were among several defendants in the case brought by Solow over his purchase of a lease from Spartan at 380 Madison Avenue in Manhattan. The allegations, including claims of fraud and unjust enrichment, were dismissed on June 28 by Justice Marcy S. Friedman.

As a result of her findings, the judge ordered Solow and his law firm, Dreier LLP, each to deposit $10,000 in sanctions. Much more significantly, she also ordered that each defendant's actual expenses and attorneys' fees shall be paid by Solow and his counsel. "These causes of action are completely without merit," the judge wrote, stating that those against the Barclays were based on "an implausible, if not absurd, factual scenario" and "lack[ed] any legal basis whatsoever."

"This is a complete vindication for our clients," said Chadbourne partner Jerome Katz. "It is rare for the winner to get all of its fees paid, but the judge properly found that the plaintiff's conduct was so egregious that the loser should pay the winner's fees." Mr. Katz said that because of the number of defendants and law firms in the case, the ultimate sanctions could well total more than $1 million.

Working with Mr. Katz on the case were Chadbourne partners Leslie Schreyer and Hedley Stothers and associates Beth Diamond and Kathleen Gardner.