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Billionaire Rennert files malpractice lawsuit over $213 million judgment

Reuters  |  NEW YORK 

By Jonathan Stempel

(Reuters) - Billionaire Ira has filed a $214 million lawsuit against his former firm, after a found him liable for looting his magnesium company to build a in New York's Hamptons.

Inc, Rennert's holding company, said neither it nor the mining mogul would have been liable had and objected to faulty instructions that has said led to an "irrational" February 2015

The lawsuit, filed late Monday in the in Manhattan, may be the last chance for Rennert, 83, to avoid a big payout, after the in October rejected his appeal of the and resulting $213.2 million judgment.

Both had been upheld by the in Manhattan last March.

Kaye Scholer, the successor firm to Kaye Scholer, did not immediately respond on Tuesday to requests for comment.

Haveles, now a at Pepper Hamilton, referred a to his former firm.

is worth $3.8 billion according to magazine, and has denied the looting allegations. His current lawyer, Steven Kaufman, was unavailable for comment on the lawsuit, which also seeks interest.

The case arose from the 2001 bankruptcy of Magnesium Corp of

Lee Buchwald, MagCorp's bankruptcy trustee, accused of diverting from the now-defunct company to help build his 21-bedroom, 43,known as Fair Field on 65 oceanfront acres in Sagaponack, on Long Island.

The property was valued last March at $248.5 million,

Jurors in Manhattan federal court found and Renco liable for $118 million to the estate. The trial judge, Alison Nathan, later added interest.

has long said the made no sense because jurors thought was solvent at the time of the alleged transfers.

In Monday's complaint, Renco said its former lawyers wrongly failed to object both to instructions that led to the "inexplicably inconsistent" verdict, and to the jury's dismissal after the was read.

Had the lawyers spoken up, the would have announced a "consistent with the 27 interrogatories it answered finding 27 separate times that the (Renco) subsidiaries were not insolvent or inadequately capitalized," Renco said.

The case is Inc v LLP et al, State Supreme Court, County, No. 150184/2018.

(Reporting by in New York; Editing by Steve Orlofsky)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 22:28 IST
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