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Real Estate Partnership Severance

Anthony Ostlund litigates real estate partnership dispute to achieve generous settlement

 

Client Issue

Stewart Stender was a partner in Trammell Crow which was, at the time, one of the largest real estate development and management companies in the country.  Stender became a client of Anthony Ostlund when Trammell Crow began to dramatically downsize and enforce the draconian provisions of its partnership agreements.  These provisions were all designed to shift development related liabilities to the individual partners like Stender.  In addition, the enforcement of the provisions in a down real estate market would have left Stender with very significant income tax liabilities without cash distributions to meet those liabilities.

 

The Anthony Ostlund Approach

We worked diligently with Stender to first understand and then dissect the numerous complicated and sometimes contradictory agreements that governed his relationship with Trammell Crow.  Then, instead of accepting Trammell Crow’s severance proposal we challenged their interpretation of the agreements and forced the matter into court in Dallas County, the home of Trammell Crow.

 

Results Achieved

Trammell Crow brought a motion for summary judgment asking the court to determine that its interpretation was correct as a matter of law.  Anthony Ostlund was able to defeat that motion and the matter was set on for trial.  Trammell Crow did not want to take the risk of a trial that could upset its relationship with all of its partners.  Thus, we were able to negotiate a resolution that was much fairer to Stender and much more generous than that initially offered by Trammell Crow.

 

CNC Ridgedale Festival Associates Limited Partnership, et al. v. Stewart R. Stender, et al.

 

Dallas County Texas District Court

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“This was the first legal work I did for Stender.  The result we obtained left Stender in a position to pursue real estate development for his own account rather than working for others.  And, it left me with a very enriching personal and professional relationship.”

 

–Norman J. Baer

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