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In what was considered a major victory for condominium owners in Miami’s most closely watched property management misconduct and construction cases, a Miami jury has delivered a verdict in favor of unit owners of the Palm Bay Yacht Club Condominium.
The case found that South Florida Condominium Management (SFCM) was liable for $5.8 million in damages for breaches of fiduciary and statutory duties, negligence, fraudulent misrepresentation, and other claims that harmed the Association and its residents. Additionally, D&R Contracting Corp. was liable for $550,000 in damages for fraudulent misrepresentation and negligence, for a total award of $6.3 million after a three-day trial before the Hon. William Thomas.
The plaintiffs were represented at trial by the Coral Gables-based firm of J. Muir & Associates P.A., with lead counsel Jane Muir, with Kayla Riera-Gomez and Victoria Morton serving as co-counsel. Litigation support attorneys included J. Muir & Associates partners Brooke Davis Bird, Joycelyn Brown, and Elizabeth Ferry. Essential staff support was provided by Devon Schweidel, Kieran Schweidel, Shawn Bynum, and Isaiah Johnson.
Notably, all of plaintiffs’ counsel are mothers and lead counsel Jane Muir welcomed a new baby, born by surrogate, only two weeks before the first day of trial.
The plaintiffs initially filed suit against a broader group of defendants, including former board members, the Association itself, current management company Akam On-Site and its affiliated entity Project Management Group, engineering firm Epic Engineering, and others.
Staggering Figure Drews Attention
The suit arose after the Association imposed a $48.6 million special assessment for construction work said to be required for the building’s 40-year recertification, a staggering figure that drew significant media attention, and sought the appointment of a receiver to take control of the condominium. Plaintiffs argued that vendor selections were tainted by conflicts of interest, resulting in a project so inflated in scope and cost that it approached the price of constructing an entirely new building.
They further contended that Epic Engineering improperly supported and justified this unnecessarily expansive and expensive work. The Association, led by President Robert Norris, had previously refused to take actions requested by the plaintiffs and denied any wrongdoing.
Following a court-ordered derivative investigation, the court narrowed the claims and limited the action to two defendants: South Florida Condominium Management (SFCM) and D&R Contracting Corp. In spite of obstacles, Plaintiffs, Palm Bay unit owners Cristian Murray, Eugenia Anderson, Randall Ames, Shabaty “Sam” Israel, Simone Diament, Sonja Prjzulj, Anais Benedetti, Susan Pierres, Borja de la Plaza, and Gail Empey, and their counsel were persistent, and in the end, the jury agreed.
Falsely Labelled “Emergency” Work
Plaintiffs presented evidence that $2.5 million in construction work was falsely labelled as “emergency” work to evade statutory requirements for permits and mandatory unit-owner approvals. Evidence at trial showed that the work, performed under the direction of an unlicensed manager who falsely represented her qualifications, was substandard, unsafe, and ultimately had to be completely redone. D&R Contracting Corp. and Contractor Rafael E. Garcia were represented at trial by Christopher G. Berga and Giannina Baldwin of BergaLaw, P.A.
Expert investigation from Tamara Reyes, retired Miami-Dade Police Detective and owner of South Florida Property Owners Consultants, and testimony from accountant Cecil Salgado played a central role in helping the jury understand the defendants’ misconduct and its cost.
Reyes was instrumental in finding the financial irregularities, misrepresentations, and statutory violations underpinning the plaintiffs’ case, demonstrating how management abuses and contractor misconduct exposed the Association to enormous financial harm.
Engineer Juan Fernandez-Barquin gave expert testimony as to the expectations of a licensed contractor.
Significant Management & Oversight Failures
The jury held D&R Contracting Corp. liable for negligence and fraudulent misrepresentation and SFCM responsible on multiple grounds including breach of fiduciary duty, negligent supervision and retention, and statutory violations. In apportioning fault, the jury assigned 60% to SFCM and 20% to D&R Contracting Corp., reflecting the significant management and oversight failures proven at trial. The jury also attributed 20% comparative negligence to the Association itself as a Fabre defendant.
Lead counsel Jane Muir emphasized the importance of the verdict for condo owners statewide. “This verdict is a reminder that condominium owners place deep trust in their managers and contractors. When that trust is violated through fraud, unlicensed activity, and dishonest billing, it has devastating financial consequences. The jury’s decision reinforces the protections Florida law provides to homeowners and ensures that those who abuse their authority will be held accountable.”
Condominium mismanagement and unpermitted construction cases require proving statutory breaches, industry-standard violations, and complex financial harm. The trial team demonstrated that the defendants knowingly ignored legal requirements, misrepresented the nature and necessity of the work, and diverted Association resources without authority.
A Powerful Message
The $6.3 million total award compensates the unit owners for damages linked to mismanagement and unlicensed and unpermitted activity. The decision also sends a powerful message to management companies and contractors operating within Florida’s regulated condominium environment: misconduct will not be tolerated.
For associations or unit owners harmed by mismanagement, unlicensed activity, or construction negligence and fraud, South Florida Property Owners Consulting offers investigation and financial review to identify association improprieties. Visit www.soflopropertyowners.com
J. Muir & Associates offers experienced legal representation to seek justice and financial compensation for associations and homeowners. If you or a loved one has been damaged due to condo or HOA issues, visit jmuirandassociates.com to take legal action.
