Armstrong Teasdale Partners Glen Waldman and Nicole Planell secured a complete victory for real estate developers in a dispute with their business partners over a high-end Florida condominium development.

Almost nine years ago, following prior successful real estate development projects, our clients reached out to four longtime friends and business partners to join them as partners in the development of a high-end condominium project, Adagio Fort Lauderdale Beach, on the intracoastal in Fort Lauderdale, Florida. All agreed that one of our clients, as in past projects, would be the manager and run the project with boots on the ground in South Florida and that the six partners would divide profits or losses based on their percentage interest in the project.

Owing to a number of factors including Covid, design changes, increased costs and permitting challenges, which caused substantial delay, this 32-unit residential mid-rise condominium luxury project ended in a modest loss. When it came time to divide the monies remaining after all debts were paid, which was in excess of $15 million, the other partners balked at the division and insisted that our clients assume all the losses because they purportedly mismanaged the project. They demanded that the four partners get back in full their investment and not share in any loss. Controlling 75% of the deal, they made it clear if they did not get all their money back, no money could be disbursed. Things got nasty and in order to leverage their demand for the full return of their investment, the four partners also accused our clients of theft and self-dealing. Our clients rightfully refused, vehemently denying these accusations from their “friends” and a lawsuit ensued in 2021.

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