In New York, there are almost an endless array of high-profile business projects that are being proposed, planned or are in the process of being built. While the public and the media might not pay strict attention to the various issues that arise behind the scenes, these business deals are often teetering on the brink of coming undone for a variety of reasons. This is why it is important to have understand how vital it is to have legal assistance experienced in dealing with complex business litigation before, during and after the project is moving forward.
A large project known as the New York Wheel is having its issues and two groups involved in the deal are in dispute. One group is believed to be trying to push out the project’s founders and legal filings are being executed. Two of the developers are reportedly displeased with the project’s current board of directors. According to emails, they believe that there are cost overruns, a failure to adequately craft a business plan, and management failures. Another group that has invested in the project filed a case against the first developers alleging that they did not pay $17 million they were required to since they were members of the board.
A lawsuit of their own was filed regarding the mismanagement claim and that they are being forced to depart the project. The Real Deal is meant to be a similar attraction to the famous London Eye and there have been hundreds of millions of dollars invested, contributed and loaned to fund it. One participant is wondering how it is possible to have nearly $500 million in funding and a failure to form a sensible plan. The revenues of the project – being constructed in Staten Island – are enthusiastically expected to surpass those generated by the Empire State Building’s famous observation deck.
Business deals can be complicated and it is imperative that anyone planning to get involved with a project and invest time and money into making it work understands the occasional need for business litigation. These problems can come up through disagreements, business disputes and a contract dispute. Regardless of the reason why there is a disagreement and whether or not the project is large, medium-sized or small, having help from an attorney is key before starting with the project and, especially, after it has begun.
Source: bizjournals.com, “Report: Heat between New York Wheel’s honchos lead to lawsuit,” Anthony Noto, Dec. 29, 2015