Insight

IN PARTNERSHIP

Adam Leitman Bailey Saves Upper East Cooperative From Forced NYU Combination With Neighboring University Building

When a New York resident of an iconic building was faced with a potentially devastating renovation to his beloved home, powerhouse real estate lawyer Adam Leitman Bailey tightened the knot on the loophole others said didn’t exist.

Large brownstone building with blue sky above in New York City
RB

Rebecca Blackwell

February 27, 2023 09:00 AM

To fall in love with where you live is one of life’s grandest gestures, finding peace and passion in the places you call home. For residents of New York, the city that glimmers day and night, it’s hard not to cherish the homes made among the glittering buildings. New York is a place so uniquely other, a city with historical roots that run deep for those already living there and those who seek it out.

Bordering 5th Avenue on the 70s between the towering residences are some of the most prestigious and profitable businesses, organizations and institutions of higher education. These establishments usually usher in significant change—and throngs of people. And while positive enhancement and growth to the cityscape are cherished, unnecessary destruction can be harrowing, especially for those who live there. When big organizations and schools spanning several city blocks threaten the harmony and structural integrity of New York’s most beloved buildings, legal action becomes the primary—sometimes the only—plan of recourse.

Perhaps no one is more acutely aware of just how special New York real estate is than long-time resident and powerhouse real estate lawyer Adam Leitman Bailey. With an office that skims the clouds in a Battery Park high-rise, Bailey has spent the last several decades working for New Yorkers to ensure that they remain defended against those who try to take their peace—and property.

Between the Brownstones

Real estate developer and decades-long resident of New York City Marius Fortelni bought his city apartment in the late 1980s when it was converted from a rental to a condominium. The apartment, situated in one of New York’s most notable Brownstone buildings bordering 5th Avenue on the 70s, was constructed by famed architect C.P.H. Gilbert and bore the signet gargoyles upon its entrance. Its opulence and history were part of its charm, and for that, Fortelni loved living in the building. He even became the cooperative building president upon moving in.

Fortelni’s building resided on one of New York’s most iconic spots—78th Street. Known for its history of luxury, both among the homes themselves and the residents who inhabited them, the Upper East Side’s 78th Street in Manhattan remains among the biggest jewels in America’s crown city. For it’s on this street that some of the country’s most affluent families have called home, and it was here that Fortelni sought to protect his building, both for himself and his fellow residents.

Although Fortelni's building was not landmarked, it resided in a landmark district with its very famous neighbor, the James Duke building, owned and operated by New York University (NYU) for its Institute of Fine Arts. Chartered in 1831, NYU has buildings peppered in and around various blocks of the city. When Fortelni's building was originally converted to condominiums, the fine print of that transaction conceded to several entry points of the building, even granting the institution access to the lower level and basement. Famed Real Estate developer Sheldon Solow has also donated a unit on the ground floor of the cooperative to NYU.

NYU eventually sought to put in a breezeway between Fortelni’s building and the NYU building to create an entrance so that students might pass between them as they traveled around campus. The breezeway would run directly into the building, opening into the building’s basement and creating additional points of entry. This would, essentially, gut a hole into Fortelni’s beautiful, preserved building. It would also allow for several hundred people to walk through the lower level between buildings, herding heavy noise and foot traffic right to the residents’ doorsteps. As Fortelni described it, it would also force the residents to surrender control over who could enter their building, their home. To say the least, it was an unwelcome and unfair intrusion that none had anticipated, threatening the harmony—and property value—of their beloved building.

Fortelni, protective of the building and its residents, sought to rectify this, discussing with several law firms his options. He was told by all that he was “wasting his time” and that “the language is written in such a way that it gives them [NYU] all the rights.” The lawyers with whom he spoke believed he had little chance—less than 1%, in fact—of winning such a litigious case against a powerful institution.

But then, a friend of Fortelni mentioned Adam Leitman Bailey, P.C.: “You know what? There’s this one law firm that probably can help you, even though your case seems to be hopeless.” Fortelni took a chance and reached out, and rather than watching a construction crew pave a new path through his building, Fortelni worked with Bailey to pave a different path—to victory.

Bailey’s Brilliant Battle Back

Fortelni describes Bailey as one of those rare people who is simply brilliant and takes different approaches to problem-solving. He says every field has a few of them, those unique minds who can look at a situation, dig into it, turn it on its head and produce an unexpected solution.

Bailey and Fortelni sat down to again pore over the text that originally granted NYU the rights to access the Brownstone. This same text, which several lawyers had declared to be without any loopholes, reminded Bailey of something pivotal to the entire ordeal: the buildings involved were classic, famous, landmark feats of architecture, and NYU was proposing—quite literally—a blight on the foundation.

Bailey knew, from years of living and working in New York real estate, that the historical value was tantamount to the monetary value of these buildings, and NYU’s renovation plans would drastically compromise both.

Bailey got to work doing one of the things he does best—research. He dug through arsenals of paperwork—about New York, the history of the buildings, the Brownstones on 78th Street—and uncovered important facts about each that had long lay dormant.

The Hearings

NYU maintained that the bylaws allowed the owner of the commercial ground floor condominium to make alterations without the board’s consent, according to the New York Times. NYU representatives appeared before the area’s Community Board 8 and presented the plans, which were met with a hostile reception by building residents and the community. NYU representatives continued that, “The addition of the breezeway was included in large part to reduce the traffic in the main entrance in order to minimize impact to the condo residents.” Bailey appeared before Community Board 8, demonstrating how NYU had falsely represented itself in the application to the Landmarks Preservation Commission and never received permission from the cooperative to sign its name to any application.

As a result, Landmarks formally withdrew NYU’s application until NYU followed the proper protocols in receiving permission to do the exterior construction and sign the appropriate name on the application. To this day this has never been achieved. “NYU knows this will ruin the value of the building and then they can capture the rest of it cheap, which is what they really want. How can you take the Mona Lisa and edit it, so it fits in with a Picasso?” Bailey expressed to the Community Board. He then discussed the effect of those changes on the small cooperative next door and introduced expert studies on the foot traffic and potential sound implications of such an instruction. The Community Board sided with Adam Leitman Bailey and the small cooperative. About this case, The New York Times noted:

The community board voted 41-1 to disapprove the plans. ‘The presentation information did not fully illustrate the proposed changes,’ the board stated in a letter to the LPC dated May 22. The letter notes that ‘the materials are not appropriate to the existing buildings’ and that the construction would disturb ‘the original fabric’ of the two buildings.”

Bailey achieved the similar results in State Supreme Court. Before the Community Board, the Landmark Association, a well-known judge and a large, competitive law firm with some of the best landmark attorneys in the world, Bailey presented his findings. Language from corporate documents supported his case. Bailey gave them all powerful examples, outlining why we have these landmark buildings and how vital they are not only to the city held so dear but to its residents and organizations who represent New Yorkers. The Landmark Association and the Community Board realized what a detriment NYU’s plans were to the buildings, to the city, to the people who lived there and to the legacy of 78th Street. Bailey’s representation was, as Fortelni described it, “a simple and powerful approach” that won their case.

Tenacity and Triumph

Adam Leitman Bailey has built his career, his law firm and his reputation on his fearlessness. Where others back down, he steps up, forging creative solutions and keeping his focus on the success of his clients. Fortelni attests to this strength after working with him on this case. “Honestly, I don’t think he has any weaknesses. You know, I think that man is made to do what he’s supposed to do, and he’s just set apart. There’re always some people in some fields, in sports, whatever it is, that are extraordinary. I think he really gets into the case, thinks outside the box, finds a path no matter what, does not give up, has a tenacity that is amazing. I think he doesn’t sleep at night because I think he works seven days a week, 24/7 for you. If you really have a difficult case, any case really, you want to make sure that you’re on the winning side, and the way Adam approaches any kind of deals that I’ve seen, any kind of agreements, he finds a path. I think if he would have lived a long time ago, he would have been Caesar in an army because he doesn’t give up, he’s the only one I would recommend.”

Indeed, Bailey is cut from a different cloth, with a knack for pulling back the veil and defeating what others deem unbeatable. “He doesn’t give up. That tenacity to say no matter what, I’m going to find a path to victory. That is something that is rare.”

Headline Image: iStock/OlegAlbinsky

Related Articles

IN PARTNERSHIP

How To Run a Board Meeting


by Adam Leitman Bailey

Adam Leitman Bailey explains how using Robert's Rules of Order can assist with effective and productive board meetings in real estate matters.

Several people sitting in chairs around boardroom table

IN PARTNERSHIP

The Wolf Near Wall Street


by Rebecca Blackwell

When tensions among shared real estate owners reached their tipping point, Adam Leitman Bailey P.C. stepped in and solved a modern issue with an ancient remedy.

Mortgage documents on desk

Big Updates in the Big Apple


by Nina M. Roket and Thomas D. Kearns

A Post-COVID-19 update on the commercial market for landlords, building investors and retail developers in New York.

Abstract skyscrapers and buildings in multi-color

IN PARTNERSHIP

Residential Real Estate Slowdown Expected To Continue in 2023


by Mick Harris

Rising housing costs and mortgage rates were becoming the norm in 2022. Experts anticipate that 2023 may show much of the same.

Apartment buildings with yellow haze

IN PARTNERSHIP

What is The Grieving Families Act (2022)?


by Michael L. Taub

Best Lawyers honoree Michael Taub explains The Grieving Families Act and what it means for wrongful death and malpractice cases in New York.

Image of grieving person on blue background

IN PARTNERSHIP

Results That Make a Difference


by John Fields

Thomas Moore and Judith Livingston continue to secure some of the largest verdicts in New York state for their injured clients.

Male and female lawyer in blue suits

East Side Story


by Adam Leitman Bailey

The made-for-Hollywood tale of a 16-year legal tussle to help a dedicated band of Manhattan “homesteaders” take ownership of the buildings they had moved into and begun to rehab.

Rosario Dawson's Family Fight for NY Building

House Trap


by Heidi E. Storz

Special districts are often being used as profit centers that leave residents to foot the bill. These homeowners deserve protection from unscrupulous developers who attempt to fleece them and avoid accountability.

Special Districts Changing Property Ownership

In the News: New York


by Best Lawyers

News and Events for New York Lawyers

In the News: New York

Results Matter


by Sean Stonefield

With a history of record recoveries, Block O’Toole & Murphy continues to achieve some of New York’s largest personal injury verdicts and settlements.

Block O’Toole & Murphy

The Fighter From New York


by Justin Smulison

Benedict Morelli discusses recent successes and high-profile casework.

Benedict Morelli of Morelli Law Firm

Davis, Saperstein & Salomon Fights for Full Justice for the Injured


by Samuel L. Davis

Over 40 years of practicing law, Davis, Saperstein & Salomon go the extra mile to advocate for their clients.

Davis, Saperstein & Salomon

A Master in Defending the Accused


by Best Lawyers

The relentless pursuit of justice when everything is on the line.

Patrick A. Mullin

Withstand the Ban


by Jeffrey A. Calabrese and Kirby Black

With the recent Federal Trade Commission’s announcement proposing a complete ban on noncompete agreements, we offer advice to companies moving forward.

Figure out of frame signing a non-descript contract

Employers Are Budding Heads on Marijuana in the Workplace


by M. Tae Phillips and Melanie C. Cormier

As employment lawyers, we receive many questions from employers navigating marijuana legalization. Below, we answer the top three most asked questions.

Statue of Liberty holding a marijuana joint

Noncompete Extinct


by Mark W. Bakker

The Federal Trade Commission has proposed a blanket ban on noncompete agreements that could radicalize post-termination protections afforded to employers.

Dark figure walking up red staircase to open door

Trending Articles

Whistleblower Legislation Opens the Doors for More International Claims


by Justin Smulison

An Anti-Money Laundering Act, part of a recently passed Omnibus Budget in the U.S. Senate, is expanding protection for whistleblowers both domestically and internationally.

Shadow figure in spotlight against red and blue brick wall

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Best Lawyers Voting Is Now Open


by Best Lawyers

Voting has begun in several countries across the globe, including the United States, the United Kingdom and Europe. Below we offer dates, details and answers to voting-related questions to assist with the voting process.

Hands holding smartphone with five stars above phone

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

Rising Transfer Taxes


by Angus C. Beverly

Transfer taxes in California are becoming a statewide trend with potentially national implications. Here is a breakdown of the effects in several cities.

State of California in orange with city in backdrop

Could Reign Supreme End with the Queen?


by Sara Collin

Canada is revisiting the notion of abolishing the monarchy after Queen Elizabeth II’s passing, but many Canadians and lawmakers are questioning if Canada could, should and would follow through.

Teacup on saucer over image of Queen's eye

Announcing The Best Lawyers in Australia™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Australia.

The Best Lawyers in Australia™ 2023

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

Caffeine Overload and DUI Tests


by Daniel Taylor

While it might come as a surprise, the over-consumption of caffeine could trigger a false positive on a breathalyzer test.

Can Caffeine Cause You to Fail DUI Test?

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

IN PARTNERSHIP

2022: Another Banner Year


by John Fields

Block O’Toole & Murphy continues to secure some of New York’s highest results for personal injury matters.

Three men in business suits standing in office