The lawsuit, which was filed in Florida federal court, alleges that the club’s “conduct has resulted in class members paying improper and excess fees/dues and having their property values dramatically decreased.” Lead plaintiff Frank Calmes seeks to represent himself and the approximately 3,000 club residents.
A proposed class of country club residents has hit Boca West (Fla.) Country Club with a lawsuit in Florida federal court, alleging the club and its board’s mismanagement lost residents $17 million and decimated property values in violation of state consumer protection statutes, Law360 reported.
Lead plaintiff Frank Calmes filed the putative class action against Boca West Country Club Inc., its attorney Larry Corman, and its board members Jerold Glassman and Philip Kupperman. Calmes alleges the trio’s professional negligence caused the club to lose millions and consequently forced the club to increase membership dues, Law360 reported.
“Defendants’ conduct has resulted in class members paying improper and excess fees/dues and having their property values dramatically decreased,” the suit alleges.
According to the suit, when the club sold a parcel of vacant land to Akoya Associates LLC, it failed to include a standard “time of the essence” provision in its sales contract, resulting in a five-year building delay, Law360 reported. Ultimately, the Akoya units were not timely built, and the club lost $9 million in yearly dues and $8.4 million in initiation fees, the suit claims.
Leading up to the sale, Glassman and Kupperman supported the deal, allegedly breaching their fiduciary duties to residents at the club, the suit says. The suit also notes that Kupperman, who is a tax consultant, is a former managing partner at the accounting firm Arthur Andersen LLP, Law360 reported. Meanwhile, Glassman is senior counsel at Fox Rothschild LLP with more than 40 years of experience and was the founder and CEO of Grotta Glassman & Hoffman PC, the suit says. Given their “vast experience and expertise,” the residents trusted Glassman and Kupperman’s opinion on the sale, the suit says.
To cover up losses from the Akoya deal, the club increased membership dues, decreased refunds and increased fees, the suit says. Previously, Law360 reported, residents weren’t required to buy a membership, but they could purchase one for $20,000 and receive a $15,000 refund when they sold their property, according to the suit.
But after the Akoya sale, the club required residents to purchase a $70,000 membership and only $200 of that membership fee is reimbursable if the property is sold, Law360 reported. The club also imposed new restrictions limiting unit rentals, the suit says.
As a result of the club’s actions, the suit alleges property values have been decimated and some less expensive units are now valueless, Law360 reported. On average, properties have decreased by $120,000 per unit and due to the membership fee, some units can’t be sold even for $1, the suit says.
Additionally, the suit claims the club has failed to reimburse residents for mandatory fees for lockers they didn’t provide, Law360 reported.
Calmes seeks to represent himself and the approximately 3,000 club residents. The suit asserts counts of professional negligence, unjust enrichment, conspiracy and breaches of contract and fiduciary duty and seeks injunctive and declaratory relief and compensatory and punitive damages, plus attorneys’ fees and costs, Law360 reported.
Counsel for the residents and representatives for Boca West Country Club didn’t immediately respond to requests for comment Monday. The club residents are represented by Ronald Scott Kaniuk of Kaniuk Law Office PA and Michael L. Braunstein of the Braunstein Law Firm PLLC, Law360 reported.
Counsel for the club wasn’t immediately available for comment to Law360.
The case is Calmes v. Country Club Inc. et al., case number 9:17-cv-80574, in the U.S. District Court for the Southern District of Florida.
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