As the Florida real estate industry continues to flourish, development contracts are continuously being struck. But if you invest money in developing a property, it is important that your investment pays off. If a contract dispute emerges, it is possible the matter may call for legal intervention.
A real estate lawsuit filed in Miami-Dade Circuit Court in 2012 was recently settled just prior to going to a jury trial. The suit was filed by a company called BHC 900 LLC against Bal Harbor LMS. A BHC 900 representative contended that a representative of Bal Harbor reneged on an agreement between the two entities.
According to the suit, Bal Harbor and BHC 900 agreed to jointly buy a preconstruction condominium unit. In 2011, they came to terms by signing a contract that outlined plans for the development and marketing of the unit. The intention was that the two entities would split the profits of the unit’s sale.
However, the lawsuit stated that the Bel Harbor representative chose to rescind the contract. Ultimately, the unit was resold by a developer at a lower than intended rate.
Although the partners were able to recoup their initial monetary investment, BHC 900 sought damages to make up for the loss of a potential profit.
In a partial summary judgement, a judge ruled that the Bal Harbor representative did not honor the terms of the agreement and that money was owed to the BHC 900 representative. The Bal Harbor representative agreed to pay a settlement rather than having the matter turned over to a jury.
Although no terms of the settlement were not revealed, an attorney for the BHC 900 representative stated that his client was satisfied with the outcome.
Real estate development agreements can be very complex. If you sign a contract that you later believe has been breached, you could benefit from the knowledge of a Florida contract litigation attorney. By analyzing the terms of your agreement, the attorney could help you determine what damages you may be owed.
Source: The Real Deal, “Louise Sunshine settles suit alleging breach of contract,” Ina Cordle, May 11, 2015