A $6.3 Million Wake-Up Call for Condo Owners

An Opinion By Cristian Murray + Eugenia Anderson

Published December 23, 2025

A recent Miami jury verdict should command the attention of every condominium owner in Florida. In December 2025, a jury awarded $6.3 million to owners at the Palm Bay Yacht Club Condominium after finding that mismanagement and construction misconduct caused substantial financial harm.

This case was not about routine construction challenges or ordinary cost overruns. It involved systemic failures in oversight, transparency, and compliance—failures that ultimately left owners paying the price.

What Happened?

Evidence presented at trial showed that major construction work was misrepresented as “emergency” work, allowing it to proceed without proper permits, inspections, or adequate owner disclosure.

As a result, large portions of the work were performed without required permits. All of that unpermitted work ultimately had to be demolished and redone to meet code and safety requirements. Owners were therefore forced to pay:

• once to construct the work improperly,

• again to demolish it, and

• a third time to rebuild it correctly.

The jury also heard evidence of inadequate supervision, improper management involvement, and failures to safeguard owners’ financial interests.

How the Misconduct Was Uncovered

The construction and financial irregularities did not come to light by chance. The fraud was uncovered through extensive investigation and expert analysis conducted by South Florida Property Owners Consultants, working in coordination with JAM & Associates, both of whom played key roles in identifying the improper work, lack of permits, and resulting financial damage.

The owners were represented by the Law Offices of Jane Muir, Esq., whose firm presented the case to the jury and called witnesses who testified regarding the mismanagement, unpermitted construction, and resulting losses.

Their combined efforts were instrumental in exposing the misconduct and ensuring that the facts were fully presented at trial.

Why This Matters to Every Condo Owner

This scenario is not unique. Many owners are unaware that:

• Calling work an “emergency” does not eliminate permitting requirements,

• Unpermitted work can trigger mandatory demolition by building officials, and

• The cost of correcting these failures almost always falls on the owners.

Once association funds are spent, recovery can take years—even when owners ultimately prevail.

Fiduciary Duty Is Not Optional

Condominium boards and their agents owe a fiduciary duty to the owners. That duty includes verifying permits, licensing, scope of work, and contractor compliance—not simply relying on contractor assurances.

The Palm Bay verdict underscores a critical point: courts and juries will hold boards, managers, and contractors accountable when that duty is breached.

The Takeaway

Construction work is unavoidable in aging condominium buildings. Paying for the same work multiple times because it was done improperly the first time is not.

The Palm Bay Yacht Club case is a clear reminder that transparency, permitting, and independent oversight are essential to protecting owners and their investments.

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