No Labels in legal hot water with big donors

New York megadonors have sued third-party organization No Labels over an alleged bait-and-switch situation, accusing the group of seeking donations as a bipartisan governing group and then looking to finance a third-party presidential campaign.

Two members of the Durst Organization, chairman Douglas Durst and president Jonathan Durst, filed a breach-of-contract and “unjust enrichment” suit on Tuesday in the New York Supreme Court. The cousins who lead the powerful real estate company are seeking damages and reimbursements for the $145,000 donated to No Labels as early as 2020.

Attorney Randy Mastro, whose firm represents the Dursts, told the New York Times that the Dursts only agreed to the donation because they believed No Labels was committed to promoting bipartisanship.

“They never imagined at the time that No Labels would pivot to becoming the organization behind a quixotic third-party candidacy that could skew the most consequential presidential election of our lifetime,” he said. “The Dursts believe they were sold a bill of goods, and they want no part of it.”

This is the latest complaint against the third-party group, which has been accused by Democratic allies and lawmakers of working to prevent President Joe Biden’s reelection and aid a Republican victory in the 2024 election. The group, which has long sought to open doors for third-party candidates in several presidential contests, has been criticized for straying from its founding mission.

“This case seeks to hold No Labels accountable for the consequences of its misguided actions that have left its original benefactors like the Dursts feeling bewildered, betrayed and outraged,” the lawsuit reads, according to the New York Times. The lawsuit adds that had “No Labels ever given any indication that it might pursue such a gambit, the Dursts never would have funded the organization.”

No Labels does not disclose its donors, and it has achieved ballot access in at least 14 states, most recently in Kansas and Maine. The group has also gained access to ballots in Alaska, Arizona, Arkansas, Florida, Hawaii, Mississippi, Nevada, North Carolina, Oregon, South Dakota, and Utah for the 2024 election.

Some political groups, such as Third Way, have gone so far as to accuse the third-party group of wanting a contingent election, during which a Republican House majority would likely select Donald Trump as the president.

“A third-party ticket option will only discourage bipartisan reform because it will take votes away from one of the major political candidates, giving an advantage to the other candidate,” the lawsuit states.

No Labels officials repeatedly have said their participation in the 2024 election is contingent on the Democratic and Republican nominees, but they are searching to find alternatives for voters who do not want to see a repeat of the 2020 election.

The Dursts’ suit details personal interactions that the pair, who are not registered Democrats, had with No Labels over the last few years. The real estate moguls accuse the third-party group of working against Biden’s Build Back Better legislation and calling the work of the House select committee investigating Jan. 6, 2021, “a partisan exercise.”

“Whether it is a breach of contract, breach of the covenant of good faith and fair dealing, promissory estoppel or unjust enrichment, it is wrong, and No Labels must now be held accountable for it,” the suit states.

Dan Webb, attorney volunteering for No Labels, called the lawsuit “frivolous” with “no merit whatsoever.” Webb said in a statement that the donations made from the Dursts were “spent on priorities that the Dursts had no complaints about at the time.”

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“We’re very disappointed to learn that former supporters of No Labels, Douglas and Jody Durst are mischaracterizing our mission and our work,” Webb said. “This is nothing more than an organized distraction. Douglas’s last contribution was six years ago, and Jody’s last contribution was over three years ago.”

“No Labels’ fundamental mission has never changed. Our current ballot access effort is a natural extension of our mission to give a voice to America’s commonsense majority and it enjoys overwhelming support from the majority of the country,” Webb continued. “The one thing that has changed unfortunately is that a group of partisan operatives has launched a conspiracy to subvert No Labels’ ballot access work and the Durst’s frivolous lawsuit now appears to be part of it.”

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