Judge Ruled Moreno Forfeited $8.5 Million Deposit
A federal judge ordered Arturo Moreno to lose his penthouse deposit following a failed real estate contract.
Updated on Sept. 29, 2026 in Baseball
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A federal judge in New York City ruled that Arturo Moreno must forfeit an $8.5 million deposit after he backed out of a $34 million penthouse purchase. The court found that noise complaints cited by the Morenos were not unreasonable, allowing the developers to retain the funds.
Why it matters
The ruling resolves a long-standing contract dispute regarding the luxury property at 520 Park Avenue. It confirms that the developers were not at fault for the noise levels that the Morenos previously claimed made the unit uninhabitable.
The original contract for the Manhattan penthouse was valued at $34 million, with the developer later reselling the unit for $32 million. The ruling ensures the Zeckendorf developers retain the initial $8.5 million deposit provided by the Morenos.
The players
Arturo Moreno
He is a businessman who is the owner of the Los Angeles Angels baseball team.
Lorna Schofield
She is the federal judge who presided over the contract dispute in the U.S. Southern District Court.
Stan Kroenke
He is the billionaire entrepreneur who agreed to purchase the Los Angeles Angels from Arturo Moreno.
The details
The court reached its decision following a one-day trial that evaluated evidence regarding acoustic levels and the frequency of equipment pump activations in the building. Judge Lorna Schofield ultimately sided with the Zeckendorf developers, determining that the noise levels were within acceptable limits.
Timeline
2017: The Morenos signed the contract to purchase the penthouse.
2019: The Morenos withdrew from the penthouse purchase agreement.
2022: The Zeckendorfs filed a breach of contract lawsuit against the Morenos.
2025: A one-day trial was held in federal court regarding the dispute.
September 2026: A federal judge ruled that the developers could keep the deposit.
Season Trajectory
This legal outcome marks the conclusion of a significant personal financial commitment for Arturo Moreno as he prepares to transition away from his ownership of the Los Angeles Angels. The forfeiture of the deposit underscores the high-stakes nature of luxury real estate agreements for sports franchise owners.
The court's decision mandates that Arturo Moreno must pay additional interest and attorney fees beyond the lost deposit. This financial hit coincides with the upcoming 2026 sale of the Los Angeles Angels to Stan Kroenke, which is valued at $4 billion.
The takeaway
This case highlights the importance of thorough due diligence and precise contractual language when negotiating multi-million dollar real estate purchases. Buyers should ensure that any contingencies regarding noise or building amenities are clearly defined to avoid the forfeiture of significant deposits.
Further reading
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Source note: This article includes information reported by The Real Deal New York.
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