Richard J. Shore

/My focus

I focus on complex commercial disputes and regulatory compliance, with a particular focus on real estate and cooperative and condominium law. I have extensive experience with the Martin Act—New York’s blue sky law, the New York Executive Law, commercial lease disputes, and the rent stabilization laws governing residential and commercial properties. I handle litigations, government investigations, dispute resolution, and regulatory compliance matters.

I continuously rely on the experience I gained as an assistant attorney general in the enforcement section of the Real Estate Finance Bureau at the New York State Attorney General’s Office. In that role, I led complex investigations and enforcement proceedings under the New York’s Business Corporation Law, General Business Law, and the Executive Law where I regularly issued subpoenas, took testimony, drafted litigation papers, and appeared in State court in proceedings involving various real estate matters on behalf of the State of New York. My experience as a government regulator is coupled with over a decade of experience in private practice handling dispute resolutions, litigating in New York State and Federal courts, appearing before arbitration tribunals, and conducting internal investigations for private companies to avoid litigation.

/Representative experience

• Represented prominent national commercial real estate investment group owner of luxury New York 6th Avenue office building in holdover proceeding brought against tenant for failure to pay rent. Obtained judgment of eviction and for non-payment of rent, including interest and legal fees.
• Represented Canadian luxury menswear manufacturer and its principal in lease dispute with landlord regarding New York City showroom, where client exercised surrender provision in Good Guy Guaranty, ultimately resulting in negotiated lease termination.
• Represented commercial landlord in illegal lockout case brought by sub-tenants in New York housing court and obtained a warrant of eviction and judgment for use and occupancy against sub-tenants where master lease had terminated.
• Represented condominium developers in investigation by New York State Attorney General relating to alleged Martin Act violations involving alleged offering plan misstatements and construction defects and contemporaneous dispute with board of condominium relating to construction defects.
• Represented condominium developer in investigation by New York State Attorney General relating to alleged Martin Act violations involving alleged sales violations.
• Investigated 421-a tax violations resulting in hundreds of thousands of apartments coming into compliance and millions of dollars of restitution.
• Brought first-of-its-kind litigation dissolving a NY corporation under the Business Corporation Law.
• Led investigations and obtained multi-million dollar settlements under the Martin Act and Executive Law.
• Brought consumer fraud claims resulting in $12 million in restitution and injunctive relief against billion-dollar Fantasy Sports companies.
• Defended Italian and English clients in $70+ million lawsuit in the SDNY in relation to the aborted sale of the largest privately owned collection of antique Greek and Roman sculptures.
• Dismissed claims against Israeli manufacturer in SDNY litigation involving alleged trademark infringement.
• Represented developer in construction defect litigation against builders of 120-unit student dormitory.
• Obtained judgment in ICC arbitration for client in contract dispute.
• Represented Landlord in Yellowstone action and obtained summary judgment in lease dispute resulting in a multi-jurisdiction settlement.
• Represented holder of unsold shares of hundreds of units in dispute with board in middle-market Queens cooperative.
• Defended Fortune 500 retail giant in lease dispute resulting in case dismissal after premise destroyed during the September 11 terrorist attacks.
• Defended managing member of developer in LLC dispute over ownership of luxury condominium project.
• Represented tenant group in board control dispute and thereafter tenant-controlled board in construction defect dispute with sponsor.
• Dismissed claims related to a flood in luxury condominium brought against prominent managing agent.
• Represented purchasers and sponsors in sales contract disputes before the New York Attorney General’s Office and in New York State court.
• Conducted internal integrity review for a top U.S. construction company and liaised with government investigatory bodies.
• Defended investment advisor in $100+ million-dollar dispute in FINRA arbitration.

/Looking ahead

With interest rates rising and a potential recession looming, coupled with construction cost increases due to inflation and other world events, disputes are on the rise, whether between parties to a transaction or former partners. The changes in the economic realities of many businesses and shifts in markets have resulted in contractual disputes regarding performance and payment. Every day, we are faced with difficult questions relating to the future of these relationships, from providing advice to landlord and tenant clients relating to commercial lease disputes arising out of the long-term economic impacts of the pandemic to construction litigation and construction defect disputes to business term renegotiations and business divorces.

Over the last several years, we have also seen increased government regulation and investigations and enforcement of regulations, particularly in the New York real estate sector.

This backdrop is coupled with the need for developers, landlords, boards, and tenants to rely on increasingly specialized counsel to help navigate their legal rights and obligations as a result of the 2019 changes to the rent and conversion laws, the effects of which are still being understood and litigated. As the New York housing market adjusts to the sweeping changes in rent and conversion laws, developers, landlords, tenants, cooperatives/condominiums, and shareholders/unit owners will need to rely on increasingly specialized counsel to understand and navigate their rights and legal obligations in the new environment.

Creative thinking and cooperation among government agencies, tenants, and landlords will be necessary for all parties to succeed in this economic slowdown and “post-pandemic” environment. Unfortunately, collaboration is often difficult, and parties will resort to the courts to resolve issues, and the government will use its vast enforcement powers to ensure new laws are followed. I stand ready to represent my clients on these matters. Owners and developers would also be wise to review their internal practices and policies to ensure they comply with new laws and regulations, especially in light of the shifting priorities of state government enforcement agencies and increased resources devoted to enforcement by federal counterparts. 

I look forward to working with my clients on best practices to avoid litigation and government scrutiny.

/Insights

• “Estate and Trust Transfers: Market-Rate Co-ops and Condos, and HDFCs,” New York State Bar Association CLE Program, June 14, 2023
• Monthly contributor, Co-op & Condo Case Law Tracker, a Habitat Product, November 2021 – to date
• “I am Who I Say I am: Livesavers Bldg. Homeowners Group v. BD. Of Mgrs. Of the Landmark Condo,” Habitat Case Watch, September 27, 2022
• Guest Lecturer, “Martin Act & Executive Law: Regulation of Real Estate in New York”, Benjamin N. Cardozo School of Law Condominium & Cooperative Course, April 5, 2022
• “Role Of Special Counsel in Martin Act and Executive Law Investigations Involving Real Estate,” New York State Bar Association CLE Program, February 9, 2022
• “NY commercial lease update: Court permits drawdown on letter of credit and rejects tenant’s impossibility of performance argument” Nixon Peabody Real Estate Law Alert
• “New York Attorney General James Demands Home Loan Servicers Protect Homeowners during Coronavirus (COVID-19) Pandemic.” Nixon Peabody Condo & Co-op Alert, April 24, 2020
• “New York Attorney General Real Estate Enforcement Updates.” Nixon Peabody Real Estate Law Alert, November 15, 2019
• “Housing Issues in Focus: The Changing Legal and Regulatory Landscape for Tenants and Property Owners in New York.” Panelist Nixon Peabody, New York, NY, October 24, 2019
• “Updates to Statute of Limitations for Real Estate Securities Claims.” Nixon Peabody Real Estate Alert, September 25, 2019
• New York State Bar Association Cooperatives and Condominium Committee presentations regarding the Interstate Land Sales Act, the Citibike litigations, and the New York State Attorney General’s enforcement investigations relating to the Martin Act, Executive Law, and Business Corporation Law