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Kennelly’s Lawsuit Says Garvey Mishandled Transaction, Added Undisclosed Commission, And Never Produced Closing Statement
The Legal Beat
Rockland County Legislator Walter “Will” Kennelly (District 11) filed suit in Rockland County Supreme Court against Republican Chair Lawrence Garvey’s law firm alleging negligence, breach of fiduciary duty, and breach of contract in Garvey’s handling of Kennelly’s interest in the former Kennelly’s Grille House. In addition to being Republican Chair, Garvey is also in-house counsel for Rockland Green, the County’s former solid waste authority
According to the complaint, Will Kennelly owned and operated Kennelly’s Grille House, located at 962 Route 9W South in Congers for 25 years, when he was approached by investors in 2019 who sought to develop senior housing on the site. Kennelly transferred his interest in the property from an entity he owned (Sosken Inc.) to Kennelly Square LLC, where he partnered 50-50 with Nationwide Investors Group LLC.
Kennelly Square LLC borrowed $1.3 million from BDJ Equities to finance the development of the senior housing project. Development delays required Nationwide to invest additional capital, which reduced Sosken’s interest down to 35% and Nationwide’s to 65%.
In June of 2020 Nationwide sold its 65% interest to Wise Equities Group, LLC.
In 2021, the Clarkstown Planning Board approved the application submitted by the developers to demolish the existing structures and construct a three-story senior housing apartment building on the 1.3-acre site south of Lake Road in Congers. A special permit was issued to build 25 one-bedroom market rate senior housing units.
With approvals in hand, in December of 2021, Kennelly sought legal advice from Garvey’s firm on transferring his interest, executed a retainer agreement, and paid Garvey $5,000.
In March of 2022, Kennelly Square LLC sold its interest to a new entity Kennelly Square Holding LLC for $2,704,000. Lawrence Garvey represented Kennelly’s interest in the transaction.
That’s when, according to the complaint, things went awry. The complaint charges that Garvey incorrectly downwardly adjusted Kennelly’s interest from the 35% he held, down to 33% and improperly allocated the proceeds in the reduced amount.
The complaint also alleges that a $50,000 previously undisclosed broker’s fee materialized at the closing, and that Garvey, more than two years after the closing, has yet to provide Kennelly with a closing statement from the transaction.
Kennelly also complains that he was charged and paid a fee to reschedule the closing because Garvey was unavailable on the closing date and that Kennelly lost three family vacation days because of Garvey’s incompetence.
Kennelly charges that Garvey ducked Kennelly’s calls for months, and that his promises to recalculate the closing allocations and refund the difference were never honored.
In a three-count complaint, Kennelly charges Garvey’s firm with negligence, breach of fiduciary duty of honesty and adherence to rules of professional responsibility, and breach of contract.
Kennelly seeks compensatory damages, punitive damages, pre- and post-judgment interest, attorney’s fees and costs.
Kennelly is represented by Brian Condon, Esq. of Condon Paxos PLLC.
Last year, Garvey was a defendant in a lawsuit charging election irregularities in the selection of a candidate for Clarkstown Town Supervisor for the Republican Party.
