Paladino files suit against Hotung
Case is ‘nonsense,’ Main Place owner says
Buffalo developer Carl P. Paladino is suing the owner of Main Place Mall and the Liberty Building for $7.8 million in what’s become a high-profile game of legal ping-pong.
Paladino claims Violet Realty and its general manager Patrick Hotung, purposely caused costly delays in the redevelopment of 50 Court St. Paladino charges a series of lawsuits filed by Hotung’s group blocked construction of a $45 million, 11-story office building at the downtown site.
The developer said the delays cost him valuable time, tenants and sullied his development reputation.
“He never had a valid reason to sue over the project. His only objective was to hurt me and hurt my company, and guess what — I’m not going to let him get away with it. What goes around, comes around,” Paladino said.
Hotung and the the Main Place-Liberty Group sued the Buffalo Urban Development Corp. in 2006 challenging its selection of Paladino as developer of the city-owned property at 50 Court St. Hotung’s suit claimed the city wrongly negotiated a $700,000 sale price with Paladino, ignoring a $1.27 million offer from Violet.
Hotung’s suit ended unsuccessfully this April after exhausting all possible appeals avenues. Paladino claims he was forced to put the project on hold until the suit ran its full course.
The developer claims delays in the project cost him lucrative, long-term leases with two major Buffalo law firms, Damon & Morey and Cellino & Barnes. Damon & Morey recently signed on for space in Avant, the former Dulski Federal Office Building. Cellino & Barnes is moving into Main Place Tower, Hotung’s building.
The $7.8 million lawsuit lists five causes of actions for while Paladino seeks to collect $1.5 million apiece. He is also attempting to recoup more than $230,000 in legal fees spent to battle Hotung’s litigation.
Hotung, whose attorney is still reviewing the court papers, called the suit “typical Paladino nonsense.”
“On first look there’s nothing in there he didn’t counterclaim as part of our legal action. If he can’t get this built, it’s not our fault,” said Hotung.
The Main Place-Liberty Building executive said if Paladino can’t go through with his plans, Violet Realty is prepared to take over the prime site to build a parking ramp to serve its office tenants.
“We’re rested, ready and well-financed,” Hotung said.
He also noted Paladino has proposed a variety of projects for the site dating back to 1989, but has yet to turn a shovel at the site.
