|
Getting your Trinity Audio player ready...
|
Legal Battle Erupts Over W Resort Ownership in Puerto Rico as Brock Pierce Takes on Trucking Tycoon
Edited by: TJVNews.com
A legal dispute over the ownership of a leveled W resort in Puerto Rico has escalated into a courtroom clash between former child star turned crypto entrepreneur Brock Pierce and trucking tycoon Joseph Lipsey III, as was reported by the New York Post. Pierce alleges that Lipsey fabricated a default to unlawfully seize the property, leading to a civil lawsuit filed in Puerto Rico this month. According to the Post report, the W resort, located on the island of Vieques, was severely damaged by Hurricane Maria in 2017. Pierce paid $18.3 million in 2021 for an approximately 80% stake in the once-luxurious establishment through his holding company.
In the lawsuit, Pierce claims that Lipsey, a former family friend, falsely concocted a default to orchestrate the illicit transfer of the shuttered resort, as was noted in the Post report. According to the complaint filed on December 19, Lipsey gained control of the property in the previous month by asserting that Pierce defaulted on a $10 million loan from Lipsey’s company, VRRRF. The crypto entrepreneur, also the chairman of the Bitcoin Foundation, is vehemently contesting these allegations, seeking to reverse the transfer through legal channels, the Post report added.
In an exclusive interview with The Post, Pierce expressed a sense of betrayal, asserting, “He knew the hotel was like my heart.” The former “Mighty Ducks” actor, who portrayed the young Gordon Bombay in the hockey films franchise, views Lipsey’s actions as a grave betrayal, the Post report said. Pierce is not only aiming to reclaim ownership but is also seeking $80 million in damages, as reported by Bloomberg.
Joseph Lipsey III, the CEO of VRRRF, contends that the transfer of the property was lawful, dismissing Pierce’s allegations as baseless. Despite repeated attempts by The Post to obtain comments from Lipsey and his legal team, there has been no response. As was noted in the Post report, the 60-year-old trucking magnate relocated to Puerto Rico with his family in 2021 after facing legal troubles in Colorado related to charges of providing cocaine and alcohol to teens at their Aspen residence. The couple pleaded guilty to lesser charges, with the cocaine allegations dropped, resulting in a sentence of one-year probation and community service.
The legal battle between Pierce and Lipsey is scheduled to be heard in a Puerto Rico court in mid-January. According to information provided in the Post report, the outcome of this case holds significant consequences for both parties, potentially reshaping the ownership landscape of the W resort and shedding light on the authenticity of the alleged default.
Pierce and Lipsey’s friendship blossomed in Puerto Rico, where the former’s mother also resided. The bond deepened as Lipsey’s wife befriended Pierce’s mother before her passing. The Post report said that Lipsey, apparently fulfilling a promise made to Pierce’s late mother, extended a helping hand, setting the stage for a partnership that would later sour amid accusations and legal wrangling.
The collaboration between the two extended beyond personal ties, with Pierce and Lipsey’s son, Joseph Lipsey IV, joining forces as executive producers for the upcoming movie, “Christmas Eve in Miller’s Point,” as was reported by the Post. This shared venture, featuring stars like Michael Cera and Elsie Fisher, adds another layer of complexity to their relationship, intertwining personal and professional interests.
Pierce asserts that the loan agreement granted Lipsey the right to manage the holding company controlling the hotel in case of default. However, he contends that Lipsey disregarded the necessary legal procedures for the transfer. The Post also reported that despite the legal battle, Pierce is committed to renovating the former W resort and plans to rebrand it under a new nationally recognized hotel banner by 2025. Approximately 30 workers are currently engaged in the ongoing renovations.
The intricacies of the case will be closely watched, not only for its impact on the resort but also for the broader legal implications within the realms of real estate, business, and friendship turned sour.
