Judge Asked to Take Control of Condos

(This story, in slightly different form, originally appeared in Incisive Media’s Daily Business Review.)

WEST PALM BEACH, FL-The Related Group, already facing financial problems at several projects and foreclosure on CityPlace South Tower locally, may have to pay $7 million for alleged construction defects at the oceanfront Beach Club in Hallandale Beach before disbursing proceeds from its last three units there. The Beach Club master association last week asked Broward Circuit Judge Ronald Rothschild to take jurisdiction of the three units through a writ of attachment. A hearing is scheduled for Friday.

If Rothschild does take control of the units, proceeds from the eventual sale of them would be used to pay for the alleged construction defects, says Michael Hyman, the association’s attorney in Miami.