Vazquez & Associates attorneys Gerardo Vazquez and Steven Herzberg are currently representing 22 plaintiffs in a lawsuit against various companies and individuals in Miami-Dade County. The firm’s lawsuit and Mr. Herzberg were both referenced in a recent article regarding the dispute in the South Florida Business Journal. The complaint focuses on the the 22-plaintiff’s lost investments relating to the Bal Harbour Quarzo Hotel. As per the published article:
“In a June 2017 complaint, filed on behalf of 22 parties allegedly owed $2.14 million, Miami attorney Steven Herzberg alleges that Beach Haus Bal Harbour LLC paid “insufficient” funds for the hotel, and that a “profit participation” agreement recorded by the parties would entitle the former owners to future profits once the hotel project is completed.
That is money owed to creditors, whose funds were used to pay prior investors and for operating expenses, Herzberg alleges in his complaint.”
All investments, but especially real estate investments, hold legal and business risk. It is important for any investor to measure those risk compared to the potential for a return on one’s investment. As a law firm that is involved in various business and real estate transaction and litigation matters, often individuals come to our office when its too late to recover any losses in an investment gone wrong unless legal action is taken.
While the attorneys at the firm always try to avoid costly and long drawn-out litigation, ultimately for many of the firm’s clients, such as the 22-plaintiffs in this lawsuit, litigation is the only option. It is always recommend that anyone looking into a new investment opportunity seek legal advice regarding the legal ramifications and remedies available to them should the investment go awry.
Investors also need to be aware about what type of federal and state law disclosure requirements are required for the type of investment they are making. Various Florida and federal laws require those offering investments to provide specific disclosures to potential investors. These disclosures should make the investors aware of the various risk associated with their investments.
While litigation is often the last resort, it is also a very powerful tool. Litigation, such as the case mentioned in the article, offer wronged investors statutory, contractual and equitable remedies in order to attempt to recoup one’s losses. For example, in this case the firm has various contractual, equitable, and statutory remedies pleaded.
One of these remedies is for an equitable lien on the property that hotel project sits on. An equitable lien is a remedy that is used in order to prevent unjust enrichment when there are not other available avenues for collection of the lost amounts. This case also involves claims for breach of contract and breach of Florida investment and securities law.
You can read more about our firm’s representation of these investors at the South Florida Business Journal Article that was recently published.