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| russellsmith | Дата: Воскресенье, 24.03.2013, 18:43 | Сообщение # 31 |
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| ST. THOMAS 颅- A Florida court has ruled that an attorney for the developers of the Grande Bay Condominium project in Cruz Bay on St. John would not have to face a second trial to determine whether one of the investors was owed damages. The final units in the 48-unit project were opened in 2010, after years of controversy and lawsuits.In a lawsuit filed in Florida in 2008, Harold Libby had charged that his attorney, David Band, was guilty of negligence and fraud when a $140,000 investment that would give Libby a 10 percent stake in the property ballooned into a $1 million expense because of construction delays, according to an appeals court decision.When Libby tried to put the brakes on additional expenses, Band and other investors represented by the attorney exercised their right to kick Libby out of his equity claim.Libby claimed Band, who was in charge of Bay Isles Associates, a partnership created to build Grande Bay, failed to properly monitor work on the development and sought $1 million in damages related to his failed investment. "The course of the development and construction of the project was marked by difficulties, delays, and demands for the infusion of additional money by the Libby parties and the other investors," the appeals court decision issued last week states. "Several years after the inception of the project, Mr. Libby declined to pay his contribution to a capital call. As a result, and in accordance with the applicable partnership agreement, the Libby parties forfeited their initial investment and all subsequent contributions, an amount exceeding one million dollars."A jury exonerated Band of the fraud and negligence charges in May 2011, but Florida Circuit Court Judge Charles Roberts ruled that Libby was entitled to a second trial for damages. Band appealed that decision, and the court decided in favor of the appeal in a ruling issued Wednesday, citing that Libby had previously signed a waiver of claims based on breach of fiduciary duty. During the legal battle, both sides acknowledge that Grande Bay had run $45 million over budget and was delayed by several years. The Jadan and Tray families sued developers in 2005 arguing that they were violating zoning regulations with the addition of the top two floors, which obstructed the families' view. The families filed a legal notice that blocked construction for months, putting the developers $6.5 million behind in payments to contractors, but in June 2008 V.I. Superior Court Judge James Carroll III ordered the notice struck down.The development company also was hindered from making payments to contractors when buyers of the condominiums sued Bay Isles Associates in 2007, arguing that they should not have to close on units that were not habitable or complete and that the development company had failed to deliver on a number of amenities they promised during the sales process. The 30 buyers claimed they should not have to pay for condos they feared might never be built or were environmentally or structurally unsound. A settlement agreement was reached with the 30 claimants, allowing the company to move forward with construction.Tenants began occupying the units on the lower floors in 2009. Construction of the final nine units was completed after the Senate approved a zoning change in April 2010. Neither Libby nor Band returned phone messages for this story. - Contact Amanda Norris at 714-9104 or email anorris@dailynews.vi.
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