Sotheby’s CEO sued by neighbors over alleged unsafe townhouse renovations

Charles F. Stewart CEO of Sotheby's
Charles F. Stewart CEO of Sotheby's - Sotheby’s
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The chief executive officer of Sotheby’s, Charles Stewart, and his wife Caterina are facing a lawsuit from their neighbors over the ongoing renovation of their Upper East Side townhouse at 7 East 81st Street. The property was previously highlighted by Architectural Digest in November 2023 for its design.

Jill Davis, a comedy writer and author, and Edward Conrad, a former managing partner at Bain Capital, live next door at 5 East 81st Street. They have filed a complaint through a trust, alleging that the Stewarts’ renovation has caused significant disruption and damage to their home over the past four years.

According to the complaint filed on Wednesday, Davis and Conrad accuse the Stewarts of conducting construction “with an utter disregard for the safety of [Davis and Conrad’s] home, and in a manner repugnant to all reasonable standards of professional conduct and communal civility.”

A spokesperson for Sotheby’s stated that Charles Stewart declined to comment on the matter.

The lawsuit claims that during the renovation process, which included removing the rear facade and extensive excavation work, a construction beam shattered the roof of Davis and Conrad’s glass atrium. The neighbors also allege water damage due to changes made to the shared wall between their homes and issues with an improperly installed sidewalk shed.

Davis and Conrad assert they tried for years to negotiate an access agreement required for construction that affects neighboring properties. They claim they entered into a limited agreement with CAHS Construction, which they allege is a fictional entity created by the Stewarts for legal protection. According to the complaint, this agreement was not honored, and further negotiations were used as “a front to buy them time” without paying license or professional fees.

Public records indicate there is currently a partial stop-work order on the Stewarts’ property issued by the Department of Buildings. The order cites that supported pipe scaffolding was installed “contrary to approved plans” with “multiple make-shift components,” resulting in “hazardous and unsafe” conditions for 5 East 81st Street. There are also ten open violations associated with their property.

Davis and Conrad are seeking monetary damages as well as an injunction to halt further work on the renovation.

Charles Stewart purchased his townhouse in November 2019 for $9.9 million shortly after becoming CEO of Sotheby’s.



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