Broward Court awards $23M in interest to Dan Marino and other investors for failed Veranda Condominiums venture

Broward Court awards $23M in interest to Dan Marino and other investors for failed Veranda Condominiums venture

Wednesday, July 5, 2017

The Veranda Condominiums in Plantation

Former Miami Dolphins quarterback Dan Marino and other investors were awarded $23.2 million in prejudgment interest this week by Broward Circuit Court related to the failed Veranda Condominiums venture that resulted in a $44 million verdict in March.

The figure comes from more than $9,354 in daily interest for 2,448 days  or $22.9 million, plus another $295,735, or almost $144 per day for a period of 2,058 days, according to the Daily Business Review.

Marino and other investors in Veranda Condominium I LLC and West City Realty Advisors LLC, claimed Wachovia Mortgage Corp. was responsible for jeopardizing 100 sales in a multimillion-dollar development. Conrad & Scherer partners led litigation for plaintiffs in the case.

The Daily Business Review reported that limited liability corporation plaintiffs alleged that a Wachovia employee’s email mistake resulted in a default on a $59 million construction loan from Regions Financial Corp.

The two LLC’s set out a three-phase plan in 2005 to build 201 luxury condominiums, 181 units, and 16 townhouses in the Plantation area of Broward County. After Wachovia signed on as the sole mortgage lender, the LLC’s alleged that the venture was botched and that Wachovia violated the Uniform Trade Secrets Act by jeopardizing sales with an email blast.

A Wachovia employee sent an email with a “CC” containing email addresses of more than 100 people who had made moves to buy condos that were part of the Veranda project. The disclosure of email addresses violated the confidentiality clause of the purchaser contracts. The mistake allegedly led to the cancellation of 119 sales contracts.

When the LLC’s defaulted on their Regions loan and still owed $26 million, Regions foreclosed on the property and flipped it to a buyer that eventually completed the project.

Between the $44 million awarded by the jury in trial and the interest awarded by Judge John Bowman, the outcome of the case totals $67 million from Wells Fargo. Wells Fargo acquired the now-defunct defendant Wachovia Mortgage Corp. in 2008.  [Daily Business Review]  Grace Guarnieri


Source: The Real Deal