A high-end clothing retailer claims Winston & Strawn failed to advise that it would be subject to certain taxes, leading the retailer to accept a lower-than-appropriate buy-out settlement with its landlord, according to a malpractice suit against the firm. The retailer, Leggiadro, retained Winston in its negotiations with a new landlord at its former flagship location at 680 Madison Ave., according to Leggiadro v. Winston & Strawn, 1:12-cv-05066, filed June 28 in the Southern District. In a notice to the store last year, the landlord, AGE 680 Madison, said it wanted to negotiate an early termination and buy-out of the clothing store’s lease to convert the building into a condominium and shopping mall.
In negotiating the settlement amount with the landlord, Winston advised Leggiadro and owners Brooks and Ann Ross that they would owe a federal long-term capital gains tax and failed to advise them of the remaining taxes, including taxes on unincorporated business income and personal income, according to the suit.
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