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Sunday, May 1, 2011

New York's Plaza Hotel sues owners of Oak Room for $33m over customers' 'raucous and vulgar'

Suing: Plaza hotel owners Elad Properties are not happy with how the iconic Oak Room is being run















As a legendary Fifth Avenue institution, it has been graced by the likes of Bill Clinton, Broadway legend George Cohen and Lady Gaga.

But according to the landlords, New York's Oak Room and bar has been turned into a bawdy joint with 'raucous and/or vulgar' behaviour, drug taking and saucy burlesque dancers according to a $33 million law suit.

The Plaza Hotel, where the iconic restaurant is based, are suing Oak Room operators Jeffrey and Eli Gindi for damages, citing a catalogue of inappropriate behaviour that has allegedly brought the world famous hotel into disrepute
Speaking to the New York Post, the Gindis' lawyer Robert Lynn said the legal dispute has been ongoing for some time now with arguments over rent and other matters.
Talking about the suit, he said: 'Probably the owners of The Plaza would do better regulating who goes into their hotel rooms.

'They really are reaching to find a breach of the lease.'

Plaza Accessory Owners LP said in court papers that since the Gindis took over the bar there has been illegal drug use, the encouragement of 'raucous and/or vulgar' conduct, loud music and a less than satisfactory 'C' grade health inspection.

According to the suit the Oak Room, which re-opened in 2008, was supposed to be a: 'premier, upscale, white-tablecloth restaurants in Manhattan including [the restaurants adjoining] The Mandarin Oriental, The Four Seasons, The Pierre and the St. Regis hotels.'

The Gindi brothers, whose family founded the Century 21 department store, rent the space from the Plaza's owners.

They were also supposed to reach a score of '70' or above from Zagat - but instead only managed to achieve a 67, court papers added.

In August last year the Gindi's launched burlesque nights, which have also apparently angered The Plaza's owners.

The hotel, which was built in 1907, was the scene of Charlie Sheen's infamous 'melt down' where he wrecked his room in an alleged drug fuelled rampage last year.

In October, the troubled actor was said to have caused $7000 worth of damage to the $1000 a night suite after he accused porn star Capri Anderson of stealing his wallet and cell phone.

She was found locked in the star's bathroom naked.

The venerable hotel, once owned by Donald Trump, was temporarily closed in 2005 for renovations.

At the time the new owners El Ad caused controversy after they proposed to turn many of the hotel's rooms into condo's and retail units
After protests the property magnates backed down and kept 282 hotel rooms, converting the rest of the building into retail units and 152 private condos.

In 2007 a new apartment was sold at the hotel for a then record breaking $50 million.

The hotel has hosted countless famous faces over the years with everyone from politicians to rock stars staying or dining at the Grand Army Plaza institution.

In September 1985, finance ministers from the U.S., Japan, West Germany, France and Britain met at the Plaza to consult on finance issues and affirmed their agreement by signing the Plaza Accord.

It served as an agreement among the countries to bring down the price of the U.S. dollar against their currencies.

The famous Oak Room opened in 1907 as a male only bar.

It was shut during prohibition, but reopened in 1934 and has been an iconic New York eatery ever since.

It has been the backdrop for a number of ad campaigns and films including 'Arthur' and 'Scent of a Woman'.

In 1969, feminist Betty Friedan challenged the restaurant's male only policy by taking a seat in the restaurant.

The waiter simply removed the table rather than serve her.

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