Jury awards Miami condo owners $6.3 million after mismanagement claims

A group of Miami condominium owners says a massive special assessment left them with no choice but to fight back. 

In 2023, owners at the Palm Bay Yacht Club Condominiums were hit with a proposed $48 million assessment to cover the building’s 40-year recertification and a major window replacement project, according to court filings.

The cost would have required owners to pay about $175,000 upfront or face monthly increases of up to $5,000 for as long as 20 years.

For many residents, the financial burden was overwhelming.

“When this happened, I found myself in debt, and I saw other neighbors …vulnerable neighbors, elderly people who were going to lose their homes, the places they worked very hard for during their lives,” said condo owner Borja de la Plaza. “I couldn’t just sit and watch from the stands.”

A group of owners says the assessment forced them to take a closer look at past renovation projects and how those projects were managed. Their concerns eventually led to a lawsuit alleging mismanagement, negligence, and fraudulent misrepresentation. 

“I joined a group of neighbors that wanted to fight for our rights putting in the effort, the sweat, the blood, the money,” De la Plaza said.

This month, a Miami jury awarded the condo owners $6.3 million in damages.

Jurors found South Florida Condominium Management and D&R Contracting Corporation liable for negligence and fraudulent misrepresentation, citing substandard construction work that was allegedly performed under the direction of an unlicensed community association manager, according to the complaint.

However, claims against the condominium association and individual board members were dismissed, court records show.

Attorney Jane Muir, who represents the plaintiffs in the lawsuit, says the case centered on work that was done without proper permitting and oversight.

“We were permitted to pursue claims involving unpermitted work done by a property management company that had an unlicensed person posing as a licensed community association manager on premises for five years,” Muir said.

Muir says many condo owners feel trapped when disputes arise, often lacking the resources to take legal action. She encourages another approach.

“Every time I speak on this topic, I ask people to consider running for the board and becoming elected,” Muir said. “It’s your best bet to serve long enough to understand operations and oversee how things are happening in your association.”

Despite the jury verdict, Palm Bay Yacht Club owners say they are still facing significant costs, including roughly $33 million for the 40-year recertification and about $11 million for the window project.

Still, residents say the verdict represents progress.

“We can at least afford to do this, but many of our neighbors can’t,” said condo owner Cristian Murray. “I want justice, and I will not stop until this gets resolved.”

NBC6 reached out to South Florida Condominium Management and its attorney for comment but has not received a response.

An attorney representing D&R Contracting Corporation declined to comment, stating that a final judgment has not yet been entered and that post-trial motions are still pending before the court. In court filings, D&R denied the allegations, stating that “no permit violation occurred.”