26 sue law firm over West Palm Beach condo money [South Florida]
More than two dozen buyers trying to recover deposits on the failed Palladio Terrace condo have filed a $2.5 million lawsuit against the Gunster Yoakley law firm, claiming the firm failed to properly guard their cash when it served as the condo’s escrow agent.
Merco Group of the Palm Beaches, Palladio Terrace’s developer, abandoned plans to build the West Palm Beach luxury condo two years ago, but it has not returned all $10 million in deposits it obtained from would-be buyers. These and other buyers have lobbed lawsuits against Merco, seeking the return of their money. Some judgments have been reached but not paid by Miami-based Merco.
Now, 26 would-be Palladio Terrace buyers are pointing the finger at Gunster Yoakley, saying the firm was negligent in releasing their money to Merco in the first place.
“Knowing you have one of the largest, most important law firms in the county protecting your money – only to find out that they didn’t – is outrageous,” said Steve Katzman, a Boca Raton lawyer representing the group. “If a project fails, the only thing standing between you and the loss of your money is the escrow agent.”