Apthorp Will Drop Lawsuit, Mercilessly Mocked by Bank Anyway

The Apthorp (Photo from The New York Condo Blog)

After a verbal and financial spanking from the Attorney General, developers of The Apthorp plan to withdraw a controversial lawsuit they filed against the Anglo Irish Bank, The Real Deal reports.

As The Observer mentioned last week, The Apthorp filed suit against the bank after they announced plans to sell the building’s $380 million loan. It turns out, however, that The Apthorp had publicly stated last year that the sale wouldn’t affect the building.

The AG called the Apthorp’s bluff on the contradiction, and the Apthorp appears to have backed down rather than follow through on the AG’s demand that the developers offer refunds to any sales currently in contract and fining them $190,000 for the dishonest statements.

Although the Apthop has not admitted fault in the matter, they will  withdraw the suit. According to The Real Deal,  Anglo Irish did not pass on the opportunity to lambast developers.

“Plaintiff’s current effort to dismiss this case in its entirety suggests that Anglo’s contention that this is a strike suit may well be correct,” Anglo Irish lawyers wrote in the proposed order. “Nevertheless, no matter what plaintiff’s true intentions were, plaintiff has caused Anglo to incur unnecessary legal fees, expenses and other costs associated preparing for these depositions, and in opposing plaintiff’s motion generally.”

It seems like the Apthorp is short on friends these days. The judge made it clear who he sided with, even before his ruling was released.

A visibly annoyed Judge Oing told the Apthorp lawyers, “nice of you to show up,” when they arrived in court at least 35 minutes late, while a large number of lawyers in a separate case involving ESPN and EchoStar awaited for their case to be called. The Apthorp lawyers later stormed out of the judge’s chambers after both sides met with Oing.

The Apthorp will doubtless forge ahead as it has for years, limping along and licking its wounds.

eknutsen@observer.com Apthorp Will Drop Lawsuit, Mercilessly Mocked by Bank Anyway