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Kushner fraud case back before judge who declared mistrial after bias accusation

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The presiding judge ruled Friday that jury selection would start Monday morning in the fraud case with Superior Court Judge Vincent LeBlon on the bench

NEW BRUNSWICK -- Superior Court Judge Vincent LeBlon will continue to preside over the trial between Perth Amboy condo owners and the Kushner Companies despite declaring a mistrial after an attorney accused of the judge of "running the most unbalanced trial of his career."

Civil Division Presiding Judge Jamie Happas ruled Friday that the second round of jury selection would start Monday morning in the fraud case with LeBlon on the bench in Middlesex County Superior Court.

Attorney's for both sides declined to comment.

Only three of the original 33 condo owners in the Admiral and the Bayview buildings who filed the lawsuit in 2012 will continue on in the trial against the Kushner Companies next week. The three remaining Bayview unit owners are in arbitration while the rest have since settled with the developer for undisclosed amounts. The company declined to comment. 

The mistrial was declared by LeBlon Wednesday during the trial's third day of proceedings following a heated back-and-forth between the judge and the plaintiff's attorney.

The expected weeks-long trial was only on its second witness when the condo owner Neil Hunter testified that he had inquired about the development's status after reading about Charles Kushner's conviction in 2004, according to a court recording.

"This particular conversation occurred in the spring of 2005 when I heard that Charlie Kushner was gong to be incarcerated," Hunter said of his conversation with representatives in the development's sales office. 

Charles Kushner spearheaded the $600 million redevelopment project -- which included a plan for 2,000 condos and townhomes across 17 buildings, as well as 200,000-square feet of retail space, acres of parks, a marina, a hotel, a community center and a gym. Only two buildings and a gym have been completed 13 years later. Kushner has been subpoenaed to testify in the trial.

Patrick J. Perrone, the lawyer representing the real estate development company, objected to the testimony mentioning the 18 felony convictions, which forced LeBlon to rule on whether or not his criminal history would prejudice a jury. 

The judge ruled that since Charles Kushner was not named in the suit specifically his criminal history was not relevant and told Whalen to instruct his clients to make no reference to his convictions. 

To which Patrick Whalen, the attorney representing the condo owners, responded, "I want to put something on the record. I think this has been the most unbalanced trial I've ever experienced in my career." 

"It has been a relentless unbalanced campaign so far," he said. 

Perrone had motioned earlier for a mistrial following Hunter's testimony, arguing that since the conviction was more than 10 years ago it was not relevant and could prejudice the jury. He accused Whalen of knowing the testimony would bring up the issue before the judge had ruled on whether or not Kushner's criminal history was admissible. 

"It would suggest to me that they had practiced and rehearsed that so that it would come out," Perrone said, without the jury present. "At the end of the day this case is about economic damages and they can't prove that. They want you to get mad at my clients and this is part of that effort. And I don't know how a jury is going to disregard this."

Whalen denied the accusations but did say Kushner's incarceration was relevant and had planned to bring them up.

"It's part of the factual story here," Whalen said. "I mean a reasonable consumer who signs a purchase agreement for a lot money, finds out the person who is in charge of the development is going to jail. nd so they ask representatives from that company 'Hey is this going to derail the project? Because if not, I'd like to get my money out.'"

"And so, they ask representatives from that company 'Hey is this going to derail the project? Because if not, I'd like to get my money out.' And then you get more promises and reassurances and misrepresentation under the consumer fraud act."

After Charles Kushner went to prison, Whalen argued, citing the company's website, that Jared Kushner, his son and Donald Trump's son-in-law, shifted the business to focus more on New York projects.

The judge also ruled there should be no references to Jared Kushner as well unless Whalen could prove relevance. 

In addition, Whalen also accused the judge and his law clerk of doing research for the defense when there has been no pending motions on issues."

The judge denied any bias during the trial but accepted Perrone motion for a mistrial after a short break. 

"You can both go and see the presiding judge and you find out how to continue the prosecution of this matter," LeBlon said after declaring a mistrial. "I think I've been very balanced in trying to be fair to both sides. How do I go forward with those remarks from Mr. Walen."

"I agree," Perrone responded. "A mistrial had to be granted."

Happas said Friday, with only the attorneys in the courtroom, that the trial would start at jury selection Monday unless the remaining plaintiffs settle. 

Craig McCarthy may be reached at CMcCarthy@njadvancemedia.com. Follow him on Twitter @createcraig and on Facebook here. Find NJ.com on Facebook


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