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ARTICLE ID 194993

$________ MID-TRIAL Contract – Alleged breach of property management agreement – Plaintiff property management company claims defendant condominium homeowner association fails to renew contract for five years, resulting in lost profits

Broward County, FL

The plaintiff, in this contract action, was a property management company which brought suit against the defendant condominium homeowners association for allegedly failing to renew a management agreement. The defendant asserted that the agreement was illegal and not enforceable.

The plaintiff’s case arose out the defendant association’s alleged failure to honor the renewal of the plaintiff’s property management contract for a five-year term. Thereupon, the plaintiff argued that it was entitled to receive lost profits for the five year term, plus attorneys’ fees.

The defense argued that there was evidence of fraudulent and unethical practices of the plaintiff that dated back nearly 20 years. In part, the defense claimed that the plaintiff was taking kickbacks from contracts and other inappropriate profits without the knowledge of the association, and to their detriment.

The defendant asserted that it blindly trusted the plaintiff, given the nearly two decades the plaintiff had managed its affairs. The defense maintained that the contract violated various aspects of the Florida Statutes and Professional Standards for Community Association Managers, and therefore, could not be enforced per Florida Law.After three days of trial, and the plaintiff’s completion of his case-in-chief, the suit was settled for $________. The settlement was less than 10% of the amount (in excess of $________), demanded by the plaintiff in opening statements.

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