The firm’s latest Miami Herald “Real Estate Counselor” column was authored by Eduardo J. Valdes and appears in today’s edition of the newspaper. The article, which is titled “Takeaways From Ruling Over Dispute at Hollywood Condo,” focuses on a recent decision over a dispute at the Hollywood Station Condominium by Florida’s Fourth District Court of Appeal that illustrates one potential outcome for community association lawsuits brought by concerned unit owners. His article reads:
. . . The case pitted Tara Ezer, a unit owner at the condominium and member of its association, against the association and six members of its board of directors. Her suit alleged that the directors violated the community’s bylaws by obtaining a loan without unit owner approval to fund material alterations to the common elements, and they misrepresented how the association would pay for the project.
Ezer’s lawsuit was a derivative action where one or more shareholders file suit in the name of a corporation against its officers and/or directors over its management/finances. The lawsuit sought an injunction to stop the alterations and requested the appointment of a receiver to manage the affairs of the condominium. It also sought damages from the defendant directors for breaches of fiduciary duties, civil conspiracy, and aiding and abetting fraud.
The case first arose in September 2020 when Ezer provided the board of directors with a letter summarizing her claims, which was followed by the filing of the lawsuit the very next month. In accordance with Florida law, the association responded to Ezer’s letter by commencing an investigation on the allegations to be led by an independent committee.