An Empire Without A Settlement

The latest WSJ family saga takes us beneath a $5 billion Manhattan real-estate empire and into four decades of Goldman family disputes.

Sol Goldman left four children with equal interests and expected his properties to remain together. Operational authority, however, was never clearly settled. Jane Goldman and her brother Allan became co-executors, but Jane gradually emerged as the dominant manager.

The imbalance became more difficult with the third generation. Allan’s son, Steven, worked in the business and expected a larger role after his father’s death. Jane considered him unprepared. She has now left a key management position and has been replaced by her son, Michael. Steven was not informed beforehand.

Jane and her sister Amy also disagreed over the valuation of Amy’s interest. Steven and Amy later alleged that assets had been undervalued and that Jane was consolidating control. Jane rejects the allegations and says Steven tried to pressure her into granting him authority he had not earned.

The family is now fighting over Allan’s estate, valuations, management powers, information and future leadership. Separate questions have merged into one contest over legitimacy.

Jane relies on nearly forty years of stewardship, her father’s confidence and a largely debt-free portfolio. Steven relies on his position as Allan’s successor and the argument that one branch should not dominate an enterprise owned equally by several branches.

Both speak of continuity, but mean different things. For Jane, it means preserving the portfolio and its conservative discipline. For Steven, it means preserving his branch’s place in management.

The possibility of dividing the empire has now entered the discussion. The Goldmans are no longer arguing only over who should manage a common inheritance. They are questioning whether it can still be held in common.

The properties may be worth $5 billion. The unresolved matter is authority.

W.