McDonald’s Legal Battle with Ex-StreetEasy CEO Over NYC Penthouse Expansion
A legal confrontation has emerged between McDonald’s and Michael A. Smith, co-founder and former CEO of StreetEasy, over the ownership and use of rooftop space atop a Tribeca condominium in New York City. The dispute centers around Smith’s high-end penthouse at 147 Reade Street, which boasts four outdoor decks and a private swimming pool. McDonald’s claims ownership of the rooftop space used in the expansion of the penthouse, citing historical easements and property agreements.
According to court filings, McDonald’s purchased four commercial units in the building complex in 1990, which includes properties at 149 Reade Street, 165 Chambers Street, and 303-307 Greenwich Street. As part of the purchase, McDonald’s negotiated easements for installing a cooling tower on the rooftops of 147 and 149 Reade Street. These easements allowed the company access to rooftop space for operational purposes until 2006 when McDonald’s transitioned to a new cooling system that did not require rooftop access.
The legal dispute arises from Smith’s 2007 penthouse expansion, which reportedly encroached upon the space previously covered by McDonald’s easements. Smith received approval from the condominium board for the expansion, but McDonald’s alleges that the construction infringed upon their rights to the rooftop area. Smith’s legal team argues that the statute of limitations for McDonald’s claims has expired, a point raised in a 2021 motion to dismiss.
The Tribeca condominium has been embroiled in prior disputes concerning Smith’s penthouse. In 2021, the condo board accused Smith of misusing his position as board president to mislead other unit owners about the extent of the penthouse expansion. The board is seeking $5 million in damages, alleging Smith concealed critical details of the project.
Michael A. Smith co-founded StreetEasy in 2006 alongside Sebastian Delmont, Doug Chertok, and Nataly Kogan. He sold his stake in 2013 when the company was acquired by Zillow for $50 million. Following the sale, Smith held various leadership roles in the tech industry.
McDonald’s is seeking the demolition of parts of the penthouse that they claim violate their easement rights. The case highlights the complexities of property rights in shared spaces and the challenges posed by overlapping interests between commercial and residential property owners.
This ongoing battle raises questions about the governance of condominium boards, the enforcement of property easements, and the statute of limitations in property disputes. As the legal proceedings unfold, the outcome could set a precedent for similar disputes in densely populated urban areas.
Refrence From: www.ndtv.com