6/23/2015

PeeblesCorporation| DanielNewhouse| TawanDavis

ExPeeblesemployeepressesoninfightforcompensation
ComplaintraisesquestionsovercurrentCIOTawanDavisformerEDCemployment
June23,201504:19PM

ByTessHofmann

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346BroadwayinTribeca(inset:DonPeebles,top,TawanDavis,bottom)

AformertopexecutiveatthePeeblesCorp.whosayshewasstiffedbythedeveloperonaprofitsharingagreementandlaterfiredis
appealingajudgesdecisiontothrowouthissuit.Butwhetherornotheissuccessfulinhisquest,hiscomplaintraisesquestionsabout
currentPeeblesCIOTawanDavisroutetohispostatthecompany.
ThecomplaintallegesthatwhileDaviswasworkingattheNewYorkCityEconomicDevelopmentCorporation,hefavoredthePeebles
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6/23/2015

PeeblesCorporation| DanielNewhouse| TawanDavis

Corp.andgavethedeveloperinsiderinformationonothercorporationsbidsforamajorTribecasite.Foritspart,PeeblesCorp.said
theallegationsarewithoutmerit.
InJanuary,DanielNewhouse,Peeblesformerdirectorofdevelopmentandinvestments,suedthecompanyanditsCEODonPeebles,
claimingthatherelocatedtoNewYorkfromMiamitohelpPeeblessetupanewoperation,undertheimpressionthathewouldbe
rewardedhandsomelywithinterestondevelopmentsthathewasinvolvedin.
Thelargestprojectwastheacquisitionanddevelopmentof346BroadwayinTribeca,a13storybuildingPeeblesacquiredfor$160
millionin2013onanRFPfromNewYorkCityandiscurrentlydevelopingintoahotelandcondominiumswiththeEladGroup.
Newhousesaidheisowedatleast$3milliontheequivalentofa5percentinterestintheprojectpursuanttoverbalandimplied
contracts.However,aNewYorkSupremeCourtjudgedismissedthesuitinMay,findingthatthoughNewhousemayhavebeenstrung
along,heneverhadanexecutorycontract.
OnJune12,Newhouseappealedthatdecision,arguingthatthecourtincorrectlyfoundPeeblesallegedpromiseswereunenforceable,
andalsoarguingthatPeeblesshouldbefoundpersonallyliable.(Thejudgefoundnoreasontopiercethecorporateveil,sayingTheonly
personthatownspropertyanymoreisDonaldTrump.Hestheonlyonethatsaysitsminebuteverybodyelseownsitthroughanonion.)
ButalittlediscussedportionofNewhousescomplaintregardsDavis,formerlyavicepresidentofrealestatetransactionsattheEDC
whomovedtoPeeblesCorp.asCIOinMarch2014.
ThecomplaintallegesthatDavisdevelopedaclosesocialrelationshipwithPeebles,visitinghishomesinManhattanandFlorida,and
providedspecificinsideinformationonothercorporationsbidsfor346Broadway.
Atonepointduringthenegotiations,DaviscommunicatedtoNewhousethatanotherbidderhadofferedmorethan$200millionfor346
Broadway,thecomplaintstates.Ultimately,Davisadvisedthatiftheycouldraisethebidto$160million,NYCEDCwouldsteerthesale
toPeebles,becauseasDavisadvisedNewhouse,theCitywantedtheprojectdevelopedbyaminoritydeveloper.
DavisdidseekformalapprovalfromthecitysConflictsofInterestBoardbeforehestartedhisnewpositionatthePeeblesCorp.Based
ontheinformationheprovided,includingguaranteesthathewouldnotworkwithPeeblesonthe346Broadwayproject,theboard
granteditspreliminaryapproval,accordingtoaletterreviewedbyTheRealDeal.
TheboardadvisedDavisthattheapprovalwascontingentuponhiskeepinggovernmentinformationprivate,andhispromisethathenot
useforprivateadvantageordiscloseanyconfidentialinformationgainedfrompublicservicethatisnotavailabletothepublic.
NewhouseimpliesthatDavisviolatedtheseconditions,thenparlayedhisbusinessrelationshipintoanewpositionattheprivate
corporation.
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6/23/2015

PeeblesCorporation| DanielNewhouse| TawanDavis

AndwhileNewhousescomplaintwasultimatelydismissed,theallegationsconcerningDaviswerenotdirectlynegatedbythecourt,and
werenotaddressedbythePeeblesCorp.initsresponsetothesuit.
AsthecourtmadecrystalclearingrantingourmotiontodismissandbythrowingouteachandeveryoneofDanielNewhouses
claims,includingthoserelatedtoTawanDavistheallegationsareentirelywithoutmerit,LowellPlotkin,GeneralCounselforthe
PeeblesCorp.,toldTRDinastatementMonday.Weareconfidentthatanyappealwillbeswiftlyandfirmlydenied.
Infact,whileNewhousesentiresuitwastossed,hedidnotmakeanyclaimsspecificallyrelatedtoTawanDavis,andthejudge,Justice
JeffreyOing,didnotdirectlyaddresshisstatementsaboutDavisconduct.Oingfocusedonthecontractualclaims,anddidnotmention
thebackgroundinformationonDavis,whohasnotformallybeenaccusedofanywrongdoing.
AsourcetoldTRDthatconcernsaboutDavisbehaviorwereraisedinaMay15lettertotheConflictsofInterestBoard.WayneHawley,
theDeputyExecutiveDirectorandGeneralCounseloftheboardsaidthatthecaseisprivate,anddeclinedtocommentfurther.
Tags:donpeebles,PeeblesCorporation
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