Harry Macklowe has lost a round in the legal battle over 432 Park Avenue.
A New York appellate court ruled against the developer on Tuesday, rejecting his bid for
indemnification in the long-running litigation over alleged construction defects at the Billionaires’ Row supertall. The developer’s argument hinged on his status as a member of the condo board from 2016 to 2020.
The ruling means Macklowe can’t force the building’s condo board to cover his legal costs or any judgments issued against him in a pending lawsuit by the board. It reversed a previous decision by a judge in a lower court, who sided with the developer in 2024.
Attorneys representing the condo board, Terrence and Darren Oved, said in a statement that the decision “marks another significant victory for the Board and the unit owners of 432 Park Avenue and further validates the merits of their claims.”
“We will continue to pursue all who are accountable for the substantial harm alleged in this litigation,” they added.
Neither Macklowe nor an attorney representing him immediately responded to requests for comment.
Macklowe is among the developers named as defendants in the board’s ongoing suit at 432 Park. Filed in 2021, the suit alleges the building was “riddled” with construction defects, including “intolerable” noise issues, flooding and cracks in the walls, and that the developers concealed deficiencies from buyers.
In court filings, Macklowe and the project’s sponsor, CIM Group, said unit owners’ allegations were “vastly exaggerated.” CIM has also previously denied any wrongdoing, calling the claims “baseless.”
Also included in the court documents are reports from engineers who found hundreds of cracks in the skyscraper’s concrete facade and expressed concerns that, if the damage worsens, the tower could become unsafe, according to a review by the New York Times.
Some professionals working on the project also told the developers to switch to a more durable concrete mix to avoid cracks, though Macklowe and others ultimately went ahead with the all-white facade anyway, according to court filings.
Macklowe filed counterclaims against the condo board in May 2024, alleging that the offering plan and other documents shielded him from liability, particularly for his decisions while serving as a board member. The lawsuit against him and other developers alleges that, during his time on the board, he failed to address construction issues despite his knowledge of them and that he funneled work to his own companies, among other claims.
Last year, Macklowe forfeited his penthouse units at 432 Park to CIM after the developer filed to foreclose on them two years prior. Macklowe purchased two condos on the 78th floor and a smaller unit on the 28th floor in 2022 for $47 million, with financing from a mezzanine loan from CIM.
The two penthouses, Units 78A and 78B, entered contract earlier this year with a last asking price of $53 million.
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