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September 22, 2019Cart

Business

by Westchester County Business Journal
by WCBJ

NYC firm sues developers of The Heathcote in Scarsdale for $1.1M

A Manhattan firm claims that the developers of The Heathcote, a Scarsdale housing project, has failed to pay $1.1 million in construction management fees.

Redcom CM Inc. sued Frederick S. Fish Investment Co. and Stephen Oder Scarsdale LLC on March 18 in Westchester Supreme Court.

Redcom is demanding a court order to sell the property at 2-4 Weaver St. to pay off a mechanic’s lien.

A rendering of The Heathcote.

Frederick Fish did not immediately respond to a telephone message requesting comment. Efforts to find contact information for Stephen Oder were unsuccessful.

Fish, of Englewood, New Jersey, and Oder of West Palm Beach, Florida, developed the historic, Tudor-style Tavern Building, built in 1924 at the Five Corners crossroads in Scarsdale. The $14.1 million project consisted of converting a restaurant and offices to a 14-unit, luxury residential cooperative building.

Redcom was hired in 2016 to manage the construction for a five percent fee plus expenses, according to the complaint, attested to by Redcom CEO John Malabre.

The developers acknowledged last June that they owed $955,172, the complaint states.

Redcom agreed to accept $600,000, to be paid in three installments by the end of September. But if the developers failed to make the payments, the debt would revert to the full amount plus interest of 15 percent per annum.

Redcom claims that the developers still owe the full amount. The complaint also accuses Fish and Oder of unjust enrichment and breach of contract.

The developers were sued in 2017 by a previous construction manager, Twin Oaks Construction Co., Hartsdale, that claimed it was wrongfully terminated from the project in 2016 and was owed more than $1 million.

Fish and Oder denied the allegations in a court filing. They accused Twin Oaks of filing a fictitious mechanic’s lien that exaggerated the debt, and they claimed they had already paid Twin Oaks $811,064.

Last year, Justice Linda S. Jamieson of Westchester Supreme Court dismissed the Twin Oaks complaint and vacated the mechanic’s lien.

Redcom is represented by attorney John-Patrick Curran of Sive, Paget & Riesel PC, Manhattan.