Wave Maker: Greed in Miami

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Wednesday, May 03, 2006

Greed in Miami

Dozens of pre-purchasers at a failed Miami condominium tower have filed a class-action lawsuit against the developer after he pulled the plug on the project in February, saying hurricane-related delays and rising construction costs doomed the project.

Although he returned all of the buyers' pre-purchase deposits, the plaintiffs seek not only interest on their deposit but the value of the condo if it had been built. Their lawyer says that if the developer can be shown to have "acted in bad faith" the plaintiffs are due the benefit of their bargain (i.e., the appreciation value of their unbuilt condos), not merely a returned deposit plus interest.

''We think the money damages per each unit is $200,000 and up,'' said the lawyer.

Meanwhile, the suit gives a glimpse into who some of the buyers are for Miami condos.

Thirty five of the 56 plaintiffs are from Colombia.

Here's the kicker:

The developer, 25 years old and a Mexico native, started the project with no previous high-rise experience.

Yikes.

Posted by: Wave Maker / 4:05 PM/ |