Lawsuit over NYC's GM Building auction can proceed
LOS ANGELES, Jan 14 (Reuters) - A New York judge has ruled that a losing bidder in a 2003 auction for the General Motors Building in New York can proceed with a lawsuit accusing the landmark building's former owner, Conseco Inc (CNO.N), of rigging the sale.
The judge dismissed part of the lawsuit and declined to turn over the building to the losing bidder, Manhattan developer Sheldon Solow.
Solow, among Forbes magazine's list of richest Americans in 2007, sued Conseco and its Carmel Fifth unit last year, saying his $1.4 billion bid for the building was the highest and best.
He lost the building, however, to real estate owner and developer Harry Macklowe, who paid $1.4 billion for it.
Solow accused Conseco and Carmel of using his and other bids to set the price, and of allowing Macklowe to submit a matching bid after the auction's Aug. 27, 2003, deadline.
In a ruling handed down on Friday, U.S. District Judge Barbara Jones rejected Conseco's motion to dismiss Solow's allegations of fraud and failure to conduct a fair auction but struck down Solow's claim of unjust enrichment and a demand for $35 million in damages.
Jones also rejected Solow's request that she transfer ownership of the building to him.
A spokesman for Solow had no comment on the ruling. A Conseco spokesman could not immediately be reached for comment on the ruling.
Rent at the Fifth Avenue building, once half-owned by real estate mogul Donald Trump, is among New York's highest. (Reporting by Gina Keating; Editing by Braden Reddall)
