A multimillion-dollar legal battle has erupted over the sale of the most expensive residential property in the US — the $147 million East Hampton mansion bought by activist investor Barry Rosenstein.
Rosenstein, founder of hedge fund Jana Partners, bought the 18-acre beachfront property in May from the estates of the late owners — Christopher H. Browne, of Tweedy, Browne Company, and his boyfriend, architect Andrew Gordon.
The Corcoran real estate firm is demanding up to $8.82 million in lost commission and damages in a lawsuit claiming it was hired as the broker to sell the property, but was cut out of the hush-hush deal.
The suit, filed on Wednesday in Suffolk County, reads: “[Corcoran] structured the deal and was awarded the listing three months before the sale, but was excluded from the transaction . . . [The defendants] proceeded nevertheless to willfully negotiate in secret for its sale with Rosenstein.”
The suit — filed against the estates, three trustees and Rosenstein — claims that Corcoran president Pam Liebman and the firm’s top broker, Tim Davis, met with the trustees in January and were told they “had been selected to exclusively market” the property for $150 million.
In March, Rosenstein offered $75 million, then $125 million, directly to estates lawyer Ken Halcom, offers which were refused, the suit says. He then allegedly told Corcoran the price was too high.
According to the suit, Corcoran obtained an offer from another purchaser for $155 million, but “the defendants privately negotiated a sale of the premises to Rosenstein for $147 million.”
The papers add Rosenstein “conspired with the Estate representatives . . . [to] avoid the brokerage fee . . . to secure a lower purchase price.”
A rep for Rosenstein said, “This dispute is between the sellers and a broker claiming to represent them. Mr. Rosenstein, as the buyer, should not be a party to the complaint, and we are confident the court will see it that way.” Corcoran and their lawyer Errol F. Margolin declined to comment. Attorneys for the Browne and Gordon estates didn’t get back to us.