Arthur and Ester Haruvi, veteran New York City real estate developers, have filed a federal lawsuit accusing their 47-year-old daughter, Michelle Haruvi, of attempting to sell their $3 million Manhattan condominium without their consent. The parents allege in the complaint, filed Wednesday in the US District Court for the Southern District of New York, that Michelle is seeking to sell the two-bedroom unit to fund her "scorched-earth litigation campaign" against them.
The couple claims that Michelle unilaterally assumed control of the LLC that owns the apartment, diverted more than $100,000 in annual rental income to herself starting in 2021, and has withheld financial statements and tax documents. The Haruvis, who co-manage a portfolio of approximately 500 Manhattan apartments, are seeking a court order to block the sale, appoint a receiver for the property, and compel an accounting of all rental income.
The dispute centers on a 1,440-square-foot condo at The Sheffield, located at 322 West 57th Street. Arthur and Ester Haruvi gifted Michelle a 99% economic interest in the unit in November 2012 as part of estate planning. However, they retained 1% ownership and sole authority to manage the LLC that owns the apartment. The parents assert that Michelle's economic interest does not grant her the right to act on behalf of the LLC or make her a member.
According to the lawsuit, the Haruvis discovered Michelle's alleged plan on June 8 through a building-wide notice of a "Private Preview Before Public Listing." They learned she had hired an interior design studio to stage the apartment and reportedly demanded the staging company remove photos from social media to conceal the sale from them.
The apartment was listed for sale on StreetEasy for just under $2.8 million on the same day the federal complaint was filed. The unit generated between $9,200 and $9,500 per month in rent from at least 2013 through June 2023, totaling over $111,600 annually. The parents are uncertain if a tenant is currently in place.
Relations between Michelle and her parents reportedly fractured around 2021, stemming from her conduct with other family members. The lawsuit describes her actions as part of a "broader effort to weaponize the family’s assets for her own personal financial gain and to the detriment of her parents, from whom she is now estranged."
This is not the first legal entanglement involving the Haruvi family. Michelle previously sued her father and a property manager in 2022 over a restructuring deal of the family's seven-building Manhattan portfolio during the pandemic. That suit was dismissed in January 2024, though Michelle has appealed the decision, and the case remains ongoing. Arthur and his brother Abe Haruvi have also engaged in legal disputes, accusing each other of financial misconduct and mismanagement within the family business.