Rolyn Companies wants the association to be compelled to enter arbitration to settle the debt
By Francisco Alvarado, The Real Deal, South Florida Real Estate News — March 7, 2018
Delray Beach-based Rolyn Companies sued Ocean Trail Condominium Association No. 1 last month for breach of contract in Palm Beach County Circuit Court.
The complaint highlights the difficulty condo associations face in quickly coming up with funds to fix storm-related damage, legal experts say. Rolyn alleges the association hasn’t paid $598,734 for emergency work done to the building in the immediate aftermath of one the modern era’s deadliest hurricanes.
Rolyn attorney Ryan Lamchick and the property manager for the condo building in Jupiter did not return phone messages seeking comment.
Josh Migdal, a partner with Mark Migdal and Hayden, who is not involved in the Ocean Trail litigation, said condo associations typically rely on insurance companies to cover the cost of repairs caused by a catastrophe, but in some cases the work is completed before a claim is paid.
“The reality is that most associations don’t have cash on hand to pay for immediate repairs,” Migdal said. “When you couple that with insurers that may not pay claims, you have a recipe for disaster.”
Condo associations could also approve special assessments, but there is no guarantee that unit owners will pay it, Migdal said.
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