The “Sleep No More” legal drama has finally been put to rest.
The popular theater production, which closed last January, has been dueling it out with its landlord, Centaur Properties, in a legal dispute for over a year.
But a judge recently ruled in favor of the landlord, potentially leaving the show’s guarantors on the hook for millions of dollars.
The legal saga kicked off in 2024 when Centaur sued to evict “Sleep No More” from the McKittrick Hotel in Chelsea. The landlord alleged the show’s permit expired over two years ago. And Centaur alleged the production’s guarantors, Arthur Karpati and Jonathan Hochwald, owed $4.5 million in back rent.
But “Sleep No More” filed its own lawsuit alleging the landlord flip-flopped on a previous agreement. It further alleged that Centaur had agreed to change its lease amid the landlord’s financial struggles.
“Sleep No More” claimed it had a deal with Centaur that allowed the landlord to increase the production company’s rent to $5.1 million, but only for the first year to help the landlord refinance its mortgage.
Centaur denied the existence of this agreement. The landlord said “Sleep No More” cannot claim damages because it still used the premises without paying rent. Centaur also refuted the show’s claims that it sought to terminate the lease because of an inability to refinance its mortgage.
“Sleep No More” vacated the premises this year. Centaur filed motions for summary judgment on the guarantees and to dismiss all of the show’s claims.
At a recent hearing, the judge sided with Centaur and tossed out all of Karpati and Hochwald’s claims. The judge found the guarantors to be personally liable for the amounts due under the lease.
“We are grateful for the court’s swift and sound dismissal of the baseless allegations against our clients,” said Terrence and Darren Oved of Oved & Oved, who represented Centaur. ‘“Sleep No More” will find neither sleep nor slumber until its substantial financial obligations to our client have been fulfilled.”
The production’s attorney did not return a request for comment.
Centaur bought the property in 2007 for $29.4 million. “Sleep No More” has occupied the site of the McKittrick Hotel since 2010.
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