Court revives Eli Karp’s loan-to-own claim against Madison Realty Capital

Eli Karp got a second shot at his lawsuit against Madison Realty Capital. A Brooklyn appellate court revived Karp’s 2021 lawsuit against the lender, clearing the way for the developer to pursue claims that Madison orchestrated a “loan-to-own” scheme at a troubled East Flatbush project. A panel of judges ruled last week that a lower court improperly dismissed Karp’s 2023 case that alleged Madison made false promises to fund the Hello Nostrand project and deliberately pushed the development into default to seize control. The revived suit seeks damages for fraud, breach of contract and bad faith dealing.  An attorney for […] This article originally appeared on The Real Deal. Click here to read the full story.