Some people are toning things down because of the recession. Then there's Andrew Farkas, the real estate heir and yaching aficionado who purchased the Montauk Yacht Club in 2007 and has since presided over a multi-million-dollar renovation of the property. Farkas is hoping "to lure the mega-yacht crowd into his slips and turn his club into a nightlife destination," reports Vanity Fair's Jessica Flint, and to drum up interest in the M.Y.C.—as well as celebrate the club's 80th anniversary and his own birthday—Farkas hosted a Great Gatsby–themed party last weekend:

• Alex Rodriguez has a new, more age-appropriate celeb to spend his lonely nights with. The Yankee was spotted with Kate Hudson at a UES restaurant and outside 15 Central Park West, the apartment building where he rents. And they seem happy, too, which may be because she doesn't force him to wake up early on Saturday mornings to attend Kabbalah classes. [P6]
• Scarlett Johansson and Gwyneth Paltrow are reportedly butting heads on the set of Iron Man 2. Gwynnie is supposedly mad that Scarlett's been "hogging the limelight" and demanding too much attention from the crew. [Sun]
• It looks like Mel Gibson's new girlfriend is pregnant, after all. [MSNBC, P6]
• Estée Lauder CEO William Lauder and his wife Karen have split up. [P6]
• Penelope Cruz missed a scheduled appearance with Harvey Weinstein in Cannes this week because of food poisoning, although Harvey says she's expected to recover in time for the premiere of their new movie tonight. [Us]

Former Estée Lauder CEO William Lauder fathered a child with New York socialite Taylor Stein. While "Dancing Bear" cooed at the baby via email, he wanted to keep his illegitimate daughter secret from his mother.

Taylor Stein, the mother of Estée Lauder CEO William Lauder's love child, is going to court to get him to pay a $9.5 million settlement he agreed to in exchange for her silence.