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Estée Lauder heir settles lawsuit against NY socialite ex-mistress

Cosmetic heir William Lauder settled a lawsuit over a $7 million Bel Air mansion that caused an all-out legal battle between the Estée Lauder chairman and his former mistress, New York socialite Taylor Stein, The Post has confirmed. 

According to court documents obtained by The Post, the Estée Lauder Companies executive chairman and Stein hashed out a settlement on August 9, but the terms of that agreement remain confidential. 

Stein initially filed the lawsuit in Los Angeles on August 2018 claiming Lauder backed out of their agreement when he refused to make the annual payments for the sprawling five-bedroom, six-bathroom home as long as she, their teenage daughter and her brother lived there. 

Stein also alleged Lauder continuously harassed her and hired high-profile private detective Jack Palladino to spy on her, sources told The Post.

William Lauder settled the lawsuit over a $7 million Bel Air home.
Getty Images/Dominik Bindl
Taylor Stein initially filed the lawsuit claiming Lauder backed out of their agreement when he refused to make the annual payments for her home.

Lauder fired back with his own lawsuit and claimed Stein breached their 2007 confidentiality agreement and a “non-disparagement” provision “several times over,” which he claims triggered a “clawback” provision that excused him from the requirement to pay the home and would allow him to evict his baby mama out and former mistress of the Bel Air mansion. 

Under their 2007 agreement, Lauder had reportedly agreed to pay Stein $1 million for every year she kept quiet and not publicly disclose that he was the father of her daughter.

Lauder, son of billionaire Leonard and Evelyn Lauder, wanted to keep his affair with the socialite out of the press.

Evelyn Lauder and Leonard Lauder
Evelyn Lauder and Leonard Lauder are the parents of William.
FilmMagic/Robin Platzer

Stein, the daughter of legendary nightclub owner Howard Stein, agreed she would not come within 100 yards of any Lauder family members in Palm Beach, Aspen and New York, according to a Forbes report.

In court documents, Lauder said he “had no interest” in kicking Stein, his daughter or Stein’s brother out, but said the socialite “should not stand to benefit personally for her breaches.”

The feuding exes did agree on one thing— they asked the court to seal various documents in the case because of the sensitive information regarding them and their love child.

According to minutes obtained by The Post, the judge on September 2 granted their joint motion to seal the documents to protect their teenage daughter.

The feud between the two began in 2020 after the couple’s then 13-year old posted to social media that her parents were divorced. Lauder said the post also violated the confidentiality agreement, sources said. 

It is unknown if Stein will have to move from the residence, but according to the Los Angeles County Registrar-Recorder’s Office, Stein’s trust is still listed as the owner of the $7 million Bel Air mansion. 

Karen Lauder and William Lauder
Lauder started his love affair with Stein during his marriage to his first wife Karen.
Patrick McMullan via Getty Images

Messages to Lauder and Stein’s attorneys were not returned. 

The couple first began their relationship when Lauder saw Stein at his Aspen mansion and was still married to his wife Karen. Their daughter was born as a result of the affair, but their relationship had been fraught for years.

Stein was arrested for a misdemeanor domestic violence charge in 2013 after the former couple had an argument on the street in Los Angeles.

The socialite pleaded no contest and was sentenced to complete 13 days of community service by cleaning the streets for the California Department of Transportation.

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