In an attempt to remove their name and assets from
international speculation, two Kazakh men used The Flatotel as a scapegoat for
parking their money. A New York developer, Joseph Chetrit, co-conspired with
the two men who ultimately invested approximately 40 million into the Hotel. He
was allegedly aware that they two men were being sough after in international courts
for theft.
In this
case a suit is filled upon these three men by Boies, Schiller & Flexner LLP
for damages amounting to $18 billion after this occurrence. The bargaining zone
is unclear at this moment but Boies, Schiller & Flexner LLP will aspire to
recapture all of the damages that have been incurred about this horrible
incident.
A
distributive negotiation will most likely be used because the banker and former
politician from Kazakhstan and developer Joseph Chetrit will most likely not
have much bargaining power. They will hold the lesser position due to their
corrupt and malicious actions. Boies, Schiller & Flexner LLP will need to
claim a competitive value and recapture what it is ultimately lost from these
three men, which will not all be monetary.
In this
article, this case is very centralized on ethics and what is correct and how
these three men were able to go around the corporate structures that were in
place for foreign investment in real estate. The real estate market is not a
very heavily regulated market and this might ignite changes in the laws we see
today.
Due to the
intricate nature of this case, there will be a lot of ripple effects that will
be caused and seen throughout the real estate industry, international real
estate investment realm, international law and so forth. The BATNA for the 3
men is not looking too good at this point in time but Boies, Schiller &
Flexner LLP, hold a high position and the upper hand in this case and
ultimately, negotiation.
