Last updated on February 24th, 2025 at 06:48 am
A legal battle has erupted between McDonald’s and Michael A. Smith, former CEO and co-founder of StreetEasy, over ownership of the rooftop space of a luxury penthouse in Tribeca, Manhattan. McDonald’s claims it owns rights to the rooftop area that Smith used to build his lavish penthouse at 147 Reade Street. The dispute centers on whether Smith had the right to expand the penthouse into the area McDonald’s asserts it owns.
Details Penthouse Roof Expansion
The penthouse features four outdoor decks as well as a private pool. It was built at top of the Tribeca condo building, which addresses stand at 149 Reade Street, 165 Chambers Street, and 303-307 Greenwich Street. The roof expanded back in 2007 when the area reached about 3,700 square feet in total. Maccy D’s, as it is known in 1990 when it bought these commercial units, asserts the easement agreement, incorporating permissions for a cooling tower, formalized its right to the roof space.
McDonald’s Lawsuit and Claims
McDonald’s claims it held its rights over the rooftops until 2006 in which the company substituted for the cooling tower system then needed no more rooftops. However, Smith testified to have been authorized to renovate the penthouse, destroying part of that roof, which McDonald claims owns.
The argument goes to the extent of violation in space modification McDonald alleged this as an illegal variation over the space which owned to them.
Defense Counsel Smith
Michael A. Smith’s lawyer is countering with an argument that McDonald’s claim is time-barred. According to a 2021 motion to dismiss filed by Smith, the statute of limitations on the case had run out. He further argues that the condo board approved his penthouse expansion, which makes the legal grounds for McDonald’s lawsuit invalid.
Previous Disputes and Legal Background of Smith
This is not the first legal issue for Smith related to his penthouse. In 2021, the condo board accused him of using his position to deceive other residents about the scope of the penthouse’s expansion. The board claims Smith hid the full extent of the renovation, and as a result, they are seeking damages of at least $5 million.
Implications of the Lawsuit
This is the lawsuit between McDonald’s and Michael A. Smith that might provide an important legal precedent on property rights in Manhattan. The decision in favor of McDonald’s could bolster the rights of commercial properties over private residential expansions, particularly in high-demand real estate areas like Tribeca. This case is expected to be followed closely by real estate and legal communities alike.