McDonald’s is waging a $10 million legal battle against Michael A. Smith, co-founder and former CEO of StreetEasy, over a luxury penthouse allegedly built atop a Manhattan condominium. The fast-food giant claims the penthouse, complete with outdoor decks and a swimming pool, violates its rights to the roof space.
A Decade-Long Dispute over Rooftop Rights
Smith’s penthouse, located at 147 Reade Street in Tribeca, spans about 3,700 square feet and was expanded in 2007. According to McDonald’s, the roof space where the penthouse now stands belongs to the company under a 1990 easement agreement, allowing the installation of a cooling tower.
McDonald’s reportedly replaced the cooling tower in 2006 with a system that no longer required rooftop space. In 2007, Smith, serving as the condo board president, obtained approval to expand the penthouse—allegedly encroaching on Their easement.
The company claims the board approved the expansion without acknowledging McDonald’s rooftop rights. Now, McDonald’s seeks to restore the roof to its original state and demands $10 million in damages.
Conflicting Claims
The legal wrangling resurfaced in 2021 when McDonald’s attempted to reassert its original easement rights. The company alleges the rooftop’s alteration by Smith and the board prevented its reinstallation of an HVAC system.
Smith’s attorney, Emily Reisbaum, counters that the expansion was completed by 2010 and was fully visible. She also argued in a 2021 motion to dismiss that the statute of limitations had expired, suggesting McDonald’s waited too long to file its claims.
Smith, who sold StreetEasy for $50 million in 2013, has denied allegations of wrongdoing, maintaining that the board approved the expansion within its authority.
A History of Conflict
This is not the first time Smith’s penthouse has sparked disputes. The condo board accused Smith in 2021 of using his role as president to mislead other owners about the true scale of the expansion, seeking $5 million in damages against him.
Also Read : Pope Francis Opens Jubilee Year: A Historic Christmas Eve Ceremony 2024The saga highlights the complexities of shared property rights in dense urban environments. With McDonald’s asserting its easement and Smith standing firm on the board’s approval, the case raises questions about governance and long-standing agreements.
The court’s decision could set a precedent for how conflicts over shared building spaces and easements are resolved in New York City. Both parties remain locked in this high-stakes legal fight, with millions of dollars and a luxury penthouse at the center of the storm.
FAQs
- What is the McDonald’s vs. Michael A. Smith lawsuit about?
The lawsuit involves McDonald’s claiming that the penthouse built by Michael A. Smith in Tribeca violates their rooftop easement rights and demands $10 million in damages. - What are rooftop easement rights?
Easement rights grant a party legal access to use a specific portion of property for agreed purposes. In this case, They claims rooftop rights for its HVAC systems. - Why is McDonald’s pursuing this case after so many years?
They alleges it reasserted its rights in 2021 after facing HVAC issues requiring rooftop access. Smith’s defense argues the statute of limitations expired since the penthouse expansion was completed by 2010. - What does McDonald’s want from the lawsuit?
They seeks restoration of the roof to its original state and $10 million in damages for the alleged violation of its easement rights. - How has Michael A. Smith responded to the claims?
Smith asserts that the condo board properly approved the expansion, completed over a decade ago, and argues that They waited too long to pursue its claims.
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