Porsche Design Tower Developer Dezer Named in Profit-Sharing Lawsuit
Dezer Development LLC owes pay to its former chief operating officer for his work on some projects, according to the lawsuit complaint.
October 26, 2017 at 11:55 AM
5 minute read
Dezer Development LLC, developer of the glitzy car elevator-equipped Porsche Design Tower, is being sued by a former executive who says the company cheated him out of profits for his work on several high-profile projects.
Andrew Chesnick was chief operating officer and worked on, among other projects, the Porsche Design Tower and Residences by Armani/Casa, both in Sunny Isles Beach, and Hyde Suites & Residences Midtown Miami, according to the complaint filed Oct. 6 in Miami-Dade Circuit Court.
The breach-of-contract, conspiracy and unjust enrichment suit lists counts against the company, some of its affiliates, founder Michael Dezer and his son and company president Gil Dezer.
Dezer Development hired Chesnick on Jan. 1, 2013, for $250,000 annually, according to the employment contract. He also was to get a 3 percent share of the Dezer profits from some projects — and it's the profit sharing that's in dispute.
“That's really at the heart of the case,” said Chesnick's attorney, Glen H. Waldman of Miami law firm Waldman Barnett. Chesnick “went there, took a lower salary than otherwise would be appropriate for somebody of his expertise because … on the back end he was going to share in a small amount in the profits of the projects he was working on. … He did his job, and he did his job really well. And the Dezers have refused to pay.”
Dezer Development general counsel David H. Reimer said Chesnick was paid everything owed to him, and he cited issues with Chesnick's performance.
“We understand that Mr. Chesnick has a history of issues with his employers and, despite numerous problems with Mr. Chesnick's work while employed by Dezer Development, he was paid everything that was owed to him, and we are confident the court will reject his claims,” Reimer wrote in an email.
The Dezers dispute all of Chesnick's allegations, Reimer said.
“In fact they were surprised to receive the complaint considering Mr. Chesnick left the organization more than two years ago,” Reimer wrote.
CLAIM TO PROFIT
The complaint alleges the elder Dezer's disliked Chesnick's profit share, which created a hostile work environment, according to the complaint. The Dezers verbally berated and demeaned Chesnick, including threatening to fire him, sometimes in front of others.
In August 2015, the younger Dezer wanted Chesnick to sign an amended employment contract to decrease his profit stake from 3 percent to 1 percent on all but one of the projects, the complaint said.
“Chesnick informed G. (Gil) Dezer that he would not sign the proposed amendment because he was not willing to relinquish his profit sharing rights. Upon hearing this, G. Dezer began yelling at Chesnick using language that is inappropriate for repetition in this complaint,” the complaint said.
The work environment chipped away at Chesnick's reputation as a real estate professional — he has more than 25 years experience in the field — leaving him no choice but to resign, according to the complaint. In effect, the complaint said the Dezers “conspired … to constructively terminate” Chesnick to cancel the profit sharing arrangement.
Exactly how much money Chesnick is owed is unknown — it's at least $8 million for the Porsche Design Tower, but he also worked on other projects — and he wants an accountant to review Dezer records to determine the amount, Waldman said.
Chesnick's percentage stake and the dollar figure would put total profit on the 132-unit Porsche tower at $267 million. About a third of the luxury tower's units are on the market for $4.9 million to $16.5 million.
Chesnick also is seeking profits from the redevelopment of the former Epicure Gourmet Market & Cafe and the Bluegrass Beach Club Motel, both in Sunny Isles Beach.
Sunny Isles Beach-based Dezer Development and the Miami-based Related Group have partnered on the Hyde project, a 31-story tower with 60 hotel rooms and 410 residential condominiums, according to Dezer Development's website. Dezer and The Related Group also are working together, along with Armani/Casa Interior Design Studio, on the Armani/Casa residences in Sunny Isles Beach.
Chesnick, a former vice president of finance at Aventura-based Turnberry Associates, is seeking attorney fees and a jury trial even though his employment contract waived the right to a jury trial for both sides.
“We'll let the judge determine on that,” Waldman said.
Reimer declined in the email to specifically address allegations of a hostile environment and a civil conspiracy to terminate Chesnick.
“Mr. Chesnick's meritless allegations will be addressed in the court, and the Dezers do not wish to litigate the case in the press,” he wrote.
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