Morrison Cohen Client Prevails in Blocking Receiver Appointment over Newark’s Tallest Project

Morrison Cohen, on behalf of developer Acier Holdings, successfully opposed a construction lender’s motion to force a receiver over the Halo, a three-tower project that includes 1,075 apartments, in downtown Newark. The mixed-unit development will include Newark’s tallest tower when complete.

The project’s lender took the unusual step of seeking a receiver over an unfinished project for the purposes of completing the project itself. Prior to the motion, Morrison Cohen had commenced a lender liability action on Acier’s behalf based on the lender’s failure to fund the $90 million construction loan. The New Jersey Chancery Court ruled that these claims also could be asserted as defenses to the foreclosure action and weighed those defenses in denying the motion for a receiver.

The Morrison Cohen Real Estate Litigation team was led by Partner Christopher Milito, Counsel Joseph Kamelhar and Associate Hallie McDonald.