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Fulton Ferry Developer Gets Green Light To Sue Former Deputy MayorBY TRACY GARRITYFulton Ferry developer David Walentashas received the go-ahead from a FederalCuui i judge lu pursue iiis case against fo n u e rNew York City Deputy Mayor%u2014and Walentas%u2019 former business partner%u2014Ken Upper.Federal Court Judge Louis L. Stanton handeddown his decision after lawyers for the Cityattempted to get the civil rights action tossedout of court.Walentas has said that Upper publicly defamed him, causing both financial loss andemotional turmoil for the developer who lostthe City%u2019s conditional designation as the developer of the waterfront property in FultonFerry. Walentas retained die State%u2019s designation as the developer and across the streetfrom the site recently opened the WalentasBuilding at One Main Street for State Department of Labor offices.Richard Fischbein, of Fischbein OliveriRozenholc and Badillo, representing Walentas in the action, called the Federal judge%u2019sdecision %u201ca landmark civil rights case whichholds that a public official can be held accountable for defaming a businessman and,in so doing, injuring his ability to pursue hisCtticci.%u201dWalentas has said in previous interviewsthat Upper was solely responsible for Walentas losing the City%u2019s designation. Althoughnegotiations between Walentas and the Cityhave been reopened, a five year lapse in thedevelopment effort has ensued.%u201cThe real issue here is that because of thisaction the waterfront has not beendeveloped,%u201d says Fischbein. %u201cIt%u2019s been fiveyears and there are still tires on the waterfront. It%u2019s the people of Brooklyn who arereally missing out.%u201dWalentas%u2019 action against Upper beganmore than a year ago when a summons andcomplaint were served to the former DeputyMayor for Finance and Economic Development. According to Fischbein, the City attempted to have the case tossed out of court,because, as a public official, Upper should beprotected from these sorts of lawsuits%u2014similar to the protections given to civil rightsleaders in their comments against public officials in the 1940s and 1950s.According to me judge s decision, \Supreme Court has found a protected libertyinterest where a person%u2019s good name, reputation, honor or integrity is at stake because ofwhat the government is doing to him. Dueprocess is required to afford the person an opportunity to clear his name in cases wherethe defamation also infringes some interestsuch as employment. . . %u201dAccording to Walentas, Upper knowinglyattempted to portray him as an inept businessman who was incapable of handling a$150 million project. %u201cHe basically said thatDavid had never run anything but dry cleaners,%u201d says Fischbein. %u201cAnd the two had beenpartners in several real estate deals.%u201dWalentas has sued Upper for $500 millionin damages, and $1.5 billion in punitive damages%u2014a tab that will have to be paid by theCity, if Walentas is successful in his suit. TheCity has signed an indemnity agreement withUpper that relieves him of any financial responsibility for awards a court might make toWalentas.Fischbein says the court%u2019s decision to allowthe case is a first step in a lengthy process,but it lends a greater legitimacy to Walentas%u2019case. %u201cInitially, the dty scoffed at cases suchas these,%u201d says Fischbein, %u201cand they move tohave them thrown out of court. This time thee ruled that Walentas has a right to.%u201d Fischbein says that during the nextseveral weeks depositions will be taken fromseveral key figures in the case, including KenUpper and former Investigations Commissioner Patrick McGinley. Walentas allegesthat Upper used his office to forward falseallegations about him to the DOI.Walentas .ays he is pleased with thejudge%u2019s decision, adding that he is %u201cgratefulthat this important issue will receive the fairand impartial hearing it deserves.\LEVOLORBUNDS5 0 %OFFflyrannikraftIn Park Slopes145 7thAve.Bklyn. NY 11215636-1550CAPTAINCYSFORSALEIn the grand tradition of the18th century British SailingNavy, the Sea HeritageFoundation sells commissionsfor cash.The Sea HeritageFoundation is a not-for-profiteducational membershiporganization to preservetraditional sea lore throughparticipation. The societyhas a roster of 3,000 sea-buffswho take their sea-loreseriously.For S260 you can buy aCaptaincy in the Sea HeritageFleet. 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