Law Firm: Divine Lorraine Developer Eric Blumenfeld Owes Us Nearly $750K

He allegedly owes fees related to the Divine Lorraine, the Met, and more.


A law firm alleges that Eric Blumenfeld owes $120,000 for services rendered in relation to his development of the Divine Lorraine, pictured above in a rendering commissioned by his company.

Update: 8/15/14 3:35PM: Blumenfeld called us yesterday evening to say, “That matter has been resolved.” Today a firm spokesperson told us, “Stradley Ronon Chairman Bill Sasso and Eric Blumenfeld have reached a verbal settlement on the matter that will be committed to writing in the very near future.”

The law firm of Stradley Ronon Stevens & Young LLP has filed a suit (embedded below) against Eric Blumenfeld’s EB Realty Management Corp. The complaint alleges that Blumenfeld hired the firm in March 2012 to advise him in various real estate matters, including the Abbotts Square condo complex; the Stutz Building, where Stephen Starr’s catering empire resides; and the following development projects:

Though the firm was charging EB Realty its standard hourly rates for attorneys and legal assistants, its chair, William Sasso — one of Philadelphia’s most high-profile lawyers — was giving Blumenfeld a discount: $600 per hour, $355 less than his standard personal rate, according to the complaint.

Blumenfeld and Sasso signed an engagement letter which the firm says bound Blumenfeld to the terms laid out in its pamphlet (also in the filing below), “Standard Terms of Engagement for Legal Services.”

Yet something apparently went awry. The complaint alleges that in October 2013, Sasso, Blumenfeld, and Narberth-based real estate investor/developer Ron Cantor (an “interested party”) met to talk about the fact that Blumenfeld owed the firm about $780,000. (The highest bill was for the Met.) In a follow-up letter to the meeting, Sasso outlined the terms of repayment, and noted that future work would require payment in advance. The law firm says Blumenfeld agreed to an upfront payment of $50,000, $10,000 per month, and payment of the project’s itemized amounts “at the closing of either a finance or sale, or at such time as there is a settlement of the Ron Caplan litigation.”

Blumenfeld signed the letter on behalf of his numerous real estate entities, and indeed paid the $50,000 in November 2013. Since then, the suit alleges, nada — leaving a balance of $737,171.56.

The firm said it had no comment beyond what’s in the filing. Blumenfeld said, “I think the whole matter will probably be resolved in the next day or two. We’re in conversations and I think this will probably not be on the radar for long.”

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  • Richard

    Liz, his mansion in Gladwyne is being foreclosed on. See Montomery County #14-22031 He is in default on a three million dollar first mortgage loan. Filed on July 24, 2014.

  • Nancy Drew

    Where does Blumenfeld think he’ll get the money to comply with the “verbal settlement” they claim was reached? Is he going to divert some of the $31.5 million he has yet to receive from Billy Procida to pay his debts – business and personal? Is he going to give up equity interest instead, maybe the Schwenksville Farm LLC (named in lawsuit), whose physical address is: 833 Camp Wawa Road, Lower Salford Township, Montgomery County? Ronald Cantor, (named in Exhibit B), was involved with this property until he was apparently bought out by Blumenfeld in October of 2013. This is also where Blumenfeld’s business associate and friend, disgraced developer Mark Mendelson, indited in Federal Court for fraud and bribery, has been residing for the last few years. Also it appears as of July 2014, Mendelson has moved out and Blumenfeld himself has been hiding from his creditors and residing at this location. Birds of a feather flock together!