Developer Meyer Chetrit is being held in civil contempt of court for failing to comply with a subpoena.
The petition relates to a 2016 case. Lebanese fashion designer Reem Acra’s brands claimed defendants including the Chetrit Group caused a fire, resulting in $21 million in alleged damages by smoking the brand’s Spring Bridal collection, 300 evening gowns and other inventory. One dozen fire trucks responded to the blaze, which the label argued was caused by improper demolition work at a next-door building.
This June, the label won a total judgment of $38.7 million.
After the judgment, the brand served Meyer Chetrit with a subpoena for information and documents, likely to help enforce payment. The subpoena asked for the Chetrit Group’s account statements, financial statements, loan applications, tax returns and bookkeeping ledgers spanning four years, along with other financial information.
“To date, no documents were produced in response to the document subpoena and no written answers have been given to the questions interposed by the information subpoena,” the company wrote in its petition, which was approved Monday.
Civil contempt is meant to compel compliance with a court order. Unlike criminal contempt, it can be purged.
Aaron Jacob, a lawyer for Aboulafia Law Firm who is representing the Chetrits, said he expected the matter of civil contempt to be resolved by the end of the week.
“It’s not something that will stick at all,” Jacob said.
Jacob and the law firm were not involved in representation for the 2016 fire case but questioned the resulting $38.7 million judgment.
“That number is not an accurate representation of the damages, but that’s the number we’re dealing with right now,” he said.
A lawyer for the petitioner did not immediately respond to a request for comment.
The Chetrit family has been in hot water legally as of late. In a foreclosure case involving office towers at 500 and 512 Seventh avenues, the lender has pushed aggressively to install a receiver for the properties, alleging self-dealing and diversion of funds by Chetrit.
In Brooklyn, a lender is also pushing for a receiver for 500 Metropolitan Avenue, where tenants have accused the developer of abandoning the building, harassing tenants and evicting them in retaliation.
The city also recently sued the Chetrits. The Adams administration has claimed that the development family’s Hotel Carter in Times Square is a public safety nuisance with 155 violations. The Chetrits purchased the hotel for $192 million in 2015.
Read more
City sues Chetrits over conditions at “dirtiest” hotel
Chetrit lender alleges “intentional self-dealing” in foreclosure case, pushes for receiver
Chetrits mismanaged Williamsburg hotel, lender says in foreclosure suit