A couple who hired a Mamaroneck contractor to build a house in Scarsdale is demanding the return of $538,800 in deposits.
Michael and Katie Goldberg of Manhattan claim they “would never have entered into or continued the transaction,” according to a complaint filed June 28 in Westchester Supreme Court against KOSL Building Group, Mamaroneck, and owner Bobby Ben-Simon, “had they known the true state of affairs.”
“If I had to summarize,” Ben-Simon said in a brief telephone discussion, “it is a frivolous lawsuit, 100%, because everything was done legally and these people simply did not perform and there are consequences for not following signed documents.”
The Goldbergs wanted to build a house on Cooper Road in Scarsdale, and in January, they began discussing a deal.
Ben-Simon, of North Greenwich, Connecticut, represented himself as a prestigious local builder, according to the complaint, who had developed hundreds of luxury properties and run a company with “exceptional financial and operational wherewithal.”
Mrs. Goldberg agreed to buy the land from KOSL and the couple agreed to hire the company to build a house to their specifications.
Ben-Simon allegedly said he was unaware of any land use disputes regarding the property. Everyone understood, the complaint states, that the Goldbergs would get financing and the builder would cooperate with the lender.
The couple paid a $210,000 deposit on a land contract and $328,800 deposit on a construction contract.
KOSL and Ben-Simon immediately defaulted on their obligations, the Goldbergs claim, by refusing to give the lender the house plans; three references from previous projects; or KOSL’s credit, litigation, operational and licensing histories.
Eventually some information was provided, according to the complaint, but it was incomplete or inaccurate. Instead of providing house plans, for example, KOSL offered plans for a different house it had previously planned to build on the property.
The Goldbergs discovered that Ben-Simon and his companies had been sued recently, according to the complaint, by investors, home buyers and vendors claiming they were owed millions of dollars.
KOSL, formed in 2019, “did not and could not have had the financial or operational experience or wherewithal” that Ben-Simon had represented, the complaint states, and the company appeared to be on the brink of insolvency.
The couple claims they tried to resolve the dispute but Ben-Simon demanded that the land deal close by June 27 and claimed entitlement to both deposits.
The Goldbergs are accusing Ben-Simon and KOSL of fraud by misrepresenting and omitting significant facts to induce the deals; breach of contract by ignoring their obligations, such as cooperating with the lender; and breach of the duty of fair dealing by preventing them from “receiving the fruits of their contracts.”
They are asking the court to declare that they have no obligations under the construction contract and that they are entitled to both deposits. They are demanding unspecified monetary and punitive damages.
“At the end of the day,” Ben-Simon said, “it’s about the facts. … I believe a red line was crossed here, and there will be severe legal consequences.”
They Goldbergs are represented by Manhattan attorneys Joseph P. Cervini Jr. and Scott L. Swanson.
