Error In Condo Docs Could Leave "White Shoe" Law Firm Holding The Bag As Disgruntled Buyers Demand Deposit Refunds; Tab For Typo Could Run $100M

In New York City, the New York Post reports:

• The law firm that drew up a contract now at the center of a dispute between the residents and developers of a new apartment tower finds itself in hot water after a typo may cost the developers as much as $100 million.

• Stroock & Stroock & Lavan, a 125-year-old law firm, could find itself having to write a big check to Extell Development Co. and The Carlyle Group after a 732-page offering plan for the Rushmore, a new building at 80 Riverside Blvd., stated buyers could get their money back if the building wasn't ready by Sept. 1, 2008, instead of Sept. 1, 2009, as Extell and Carlyle say they intended. At least 25 people so far have filed applications with the Attorney General's office to get back more than $10.3 million in downpayments on purchases totaling $71 million. At press time, at least four more people were also considering following suit, sources told The Post.

• While Extell and Carlyle argue the typo caused the mix-up, a lawyer representing 24 of the buyers who want their deposits back said the offering plan amounts to a document that should be enforced. "We don't see this as a typographical error. It is a contract that needs to be enforced," said Richard Cohen, the lawyer. The gaffe exposes Stroock to the real possibility of having to pay back Extell and Carlyle out of its own pocket because sources said that if the developers sue Stroock, it's unlikely its insurer will pick up the tab.

For the story, see WRONG NUMBER (Contract Typo Could Cost Firm $100M).