The Court rules against the village of Palmetto Bay in the Luxcom case

On March 31, 2022, the Village of Palmetto suffered a court defeat in the case of the Yacht Club lawsuit filed by Luxcom against the Village regarding the former FPL property. The Village had requested that the case be dismissed because the impact of the orders enacted in 2019 regarding the property was uncertain and needed to be clarified before Luxcom could sue the Village – the judge disagreed and ruled that the affair could continue.

In November 2020, Yacht Club by Luxcom, LLC (“Luxcom”) sued the Village of Palmetto Bay (the “Village”) under the Bert J. Harris, Jr. Private Property Protection Act to recover over $20,000,000.00 in compensation for losses caused by the Village’s efforts to prevent Luxcom from developing its assets.

The focus of the lawsuit is two orders the Village enacted in 2019, which specifically and exclusively target the property and prohibit Luxcom from developing the property at 6525 SW 152nd street for its institutional uses.

The village enacted the ordinances despite telling Luxcom in writing before buying the property in 2018 that institutional uses were permitted. Luxcom claims the Village misled them because the Village did not disclose what it now admits to be an ongoing “plan” to significantly limit development on the property through the enactment of the ordinances.

Since Luxcom filed its lawsuit, the Village has tried to avoid a court ruling on the Village’s actions. The Court agreed with Luxcom that the orders have been applied to the property and that Luxcom’s claims in the lawsuit are mature.

Asked about the litigation, Mr. Barbara replied, “We are pleased that the Court has understood the Village’s tactics and we look forward to moving forward vigorously and expeditiously with discovery and trial preparation in what will be an expensive matter with tens of millions of people. dollars at risk for the Village and its taxpayers. Following the Court’s decision, the trial will now continue on the merits, and the Village will finally be held liable for its conduct and the damage it caused to Luxcom property.

Barbara added – “Additionally, documents obtained through their Public Records Request show that the Village has already spent over $750,000 on the various legal cases with Luxcom through October 2021, and this case is just getting started. “

When Mayor Karyn Cunningham was asked to comment on the most recent court ruling, she said that as it was an ongoing case she could not comment and asked the village attorney questions.


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