Boca West Class Action Accuses Country Club of Mismanagement

Boca West Country Club Inc. is facing a class action lawsuit alleging mismanagement by the club and its board members caused residents to experience $17 million in losses and significantly decreased property values.

Plaintiff Frank Calmes filed the country club class action lawsuit last week, naming as defendants Boca West Country Club, the country club’s attorney Larry Corman, and board members Jerold Glassman and Philip Kupperman. Calmes seeks to represent a proposed Class of persons in the United States who purchased property at Boca West Country Club.

According to the country club class action lawsuit, Boca West advertises itself as “The Nation’s #1 Private Residential Country Club.” The club, which is home to approximately 6,000 residents, reportedly features 1,400 acres of tropical landscaping and includes “an array of magnificent residences,” including single-family homes, patio homes, villas, garden apartments and townhomes, according to the Boca West Country Club class action lawsuit.

However, Calmes asserts that the defendants engaged in mismanagement, deceptive conduct and other actions that resulted in increased dues and fees for country club members “and decimating their property value.”

When the defendants sold club property to a company called Akoya Associates LLC, they allegedly failed to enforce a standard time of the essence provision in the contract, which according to the country club class action lawsuit led to a five-year building delay.

Because the Akoya units were not built in a timely manner, the Boca West Country Club reportedly lost $17 million in yearly dues and initiation fees over five years.

“To cover this mismanagement, Defendants increased membership dues, decreased refunds and increased fees because the Akoya unit dues were not being received,” the Boca West Country Club class action lawsuit asserts.

Before the Akoya deal, individuals did not need to buy a membership, or they could purchase a $20,000 membership and receive a $15,000 refund when they sold the property. After the Akoya deal, the defendants reportedly increased the membership dues to $70,000 and members would receive only a $200 refund when they sold the property.

Calmes claims that the property values have decreased an average of $120,000 per unit. According to the country club mismanagement class action lawsuit, some properties lost 99 percent of their value and other properties cannot be sold for even $1 because of the membership fee.

The Boca West class action lawsuit also asserts the club has failed to reimburse residents for mandatory fees for lockers that were never provided.

The defendants’ alleged mismanagement has reportedly caused a $500 million decrease in the value of the putative Class Members’ properties.

The Boca West Country Club class action lawsuit asserts the following claims: declaratory judgment, breach of contract, injunctive relief, violation of Florida’s consumer protection laws, unjust enrichment, civil RICO/conspiracy, breach of fiduciary duty, and professional negligence.

Calmes is seeking compensatory damages, punitive damages, attorneys’ fees and costs, pre- and post-judgment interest, injunctive and declaratory relief, and other relief deemed proper by the court.

Calmes is represented by Ronald Scott Kaniuk of Kaniuk Law Office PA and Michael L. Braunstein of the Braunstein Law Firm PLLC.

The Boca West Country Club Class Action Lawsuit is Calmes v. Boca West Country Club Inc., et al., Case No. 9:17-cv-80574, in the U.S. District Court for the Southern District of Florida.