Social: A judge tossed the lawsuit filed by residents of the Pierre Hotel against the board.
The lawsuit over the future of the Pierre Hotel is no more, but neither side is willing to admit defeat.
A judge dismissed the lawsuit brought by residents of the building last month, Page Six reported. The New York Supreme Court judge ruled that the lawsuit was no longer relevant because one of the biggest claims — a lack of transparency from the building’s board — had been alleviated.
The board has turned over a non-binding term sheet to the tenants, along with three years of the board’s minutes.
The board is claiming victory since the lawsuit was dismissed. But the residents are claiming victory too, arguing the case wasn’t dismissed on merit and that the result was a win “for transparency, for the shareholders, and for the Pierre.”
Fashion designer Tory Burch and fellow residents filed suit to halt what they claimed was a secretive and coercive $2 billion sale of the Fifth Avenue property that could result in their eviction.
The complaint accused the co-op board of striking an agreement in September with an unidentified LLC allegedly tied to the Khashoggi family, which would fold the building into the Brunei-owned Dorchester Collection.
The residents claimed the board refused to disclose the buyer’s identity, financing capacity or exclusivity terms, and that it rejected a rival offer from longtime operator Taj Hotels that would allow the residents to stay.
While the $2 billion sale is still on the table, the board is also considering “a potential sale of the Corporation’s hotel to Taj” and “an amendment to the Taj lease agreement that would provide, among other things, a capital investment by Taj in The Pierre.”
The Pierre, which just celebrated its 95th anniversary, is struggling to adapt to modern times. Maintenance and service are deteriorating, resulting in fraying carpets and spotty staffing.
U.S. Secretary of Commerce Howard Lutnick, the then-Cantor Fitzgerald CEO who owns the co-op’s penthouse, allegedly helped steer the board toward hiring Newmark Group, the brokerage he ran, to advise on improving the property before pivoting to a sale.
Lutnick, who has never lived in the penthouse he bought for $44 million in 2017, previously distanced himself from the controversy. A spokesperson for his government department said he hadn’t been involved in discussions and disclosed his conflicts before stepping away from his businesses when Trump tapped him for his Commerce Secretary post.
— Holden Walter-Warner
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