Airbnb and NGD settle legal battle over failed partnership

Harvey Herndandez

Two months ago, Airbnb alleged that Miami developer Harvey Hernandez’s NGD Homesharing defrauded the short-term rental company in a partnership and stole $ 1 million. NGD retaliated a few days later, alleging that Airbnb was acting in bad faith and had broken its contract.

Now both parties have settled and voluntarily dismissed the two lawsuits, ending their litigation. Terms of the settlement were not disclosed.

The legal battle began in late January, when Airbnb filed a lawsuit in Northern California claiming to have invested $ 11 million in a partnership with Hernandez’s NGD to offer Airbnb-branded apartments.

NGD was supposed to open seven projects, but never opened one, according to the complaint. He further alleged that Hernandez embezzled $ 1 million from the investment in another of his projects, Natiivo in Miami, and disguised it as a loan.

A week later, Hernandez’s NGD Homesharing filed a counter-action in Miami-Dade County, alleging that Airbnb had engaged in a series of “disruptive, delaying, tort and bad faith actions inconsistent with and in violation of legal and contractual obligations Airbnb owes to NGD.

NGD’s lawsuit alleged that Airbnb was attempting to misappropriate NGD’s confidential business information, trade secrets and proprietary business methods for the benefit of Airbnb.

“I am happy that this litigation is behind us and business is now continuing as usual,” said founder and CEO Harvey Hernandez of NGD Homesharing, LLC, in a statement. “I can’t wait to continue [to] work with Airbnb and other roommate booking platforms in the future.

Airbnb said in response to Herndanez’s statement. “Going forward, our relationship with Mr. Hernandez and NGD / Niido / Natiivo will not reflect our previous operating relationship.”

After the settlement, NGD said residents can rent their apartments or condos on short-term rental platforms such as Airbnb, much like other buildings where individuals can list their units for short-term rentals. .

NGD’s multi-family and hotel properties, which operate under the Niido and Natiivo brands, are located in Orlando, Nashville, Austin and Miami.

Hernandez, who also heads development firm Newgard Development Group, partners with Russell Galbut to build the Natiivo project in downtown Miami.

The project, designed by Arquitectonica with interiors by Urban Robot, will include 412 residential condos and 192 hotel rooms. Natiivo recently announced the launch of office condo sales for the planned project at 159 Northeast Sixth Street in Miami. Natiivo should pave the way in the summer and open at the end of 2022, according to the spokesperson. The project is about 50 percent pre-sold.

Comments are closed.