Town of Palm Beach News

Palm House Trial Date to be Pushed Back Yet Again

Circuit Court Judge Peter Blanc pushed the Palm House trial date in the Town of Palm Beach to the beginning of next year, yes that is 2016. With the Palm House in the well-experienced hands of its new construction manager, 160 Royal Palm LLC, its owner and the Town of Palm Beach hoped to extend the Palm House trial date from September of this year to the beginning of next. The lawsuit stems from the Town of Palm Beach ever-growing $1.8 million dollar fine that was imposed on the owning entity after construction did not complete by the mutually agreed upon deadline of February 14, 2013.

The new date of the trial has been set to begin within the first three months of 2016 according to circuit court judge Peter Blanc, and a pre-trial meeting is scheduled for December 18, 2015 as opposed to the original date ofAugust 28, 2015.

As part of a separate issue dealing with internal disagreements over ownership of the residence, Circuit Judge Hafele appointed Delray Beach Mayor, Cary Glickstein, as receiver of the property.  On July 21 of this year 160 Royal Palm LLC filed a joint motion with the town of Palm Beach asking the Judge to reset pre-trial deadlines, remove the case from its September to November docket, and to continue the case in light of new receivership; “A brief continuance of the pre-trial deadlines will permit the parties to work toward a mutually agreeable, global resolution of their underlying dispute” said the motion.

The lawsuit took root in December of 2012 when 160 Royal Palm LLC challenged the Town of Palm Beach and their ability to infringe a $2,000 a day fine on the owners once the completion of the Palm House exceeded the deadline imposed for February of 2013.  The owners of the Palm House claim they were granted a two-year extension on the deadline, thus rendering the accruing fine null and void.

Isolated from these motions, KK-PB Financial LLC, a Wellington-based company managed by polo property owner Glenn Straub filed to intervene in the case on account of their stake at risk being that they are the lien holder on the property. Judge Peter Blanc denied the motion saying the company can receive paperwork on the case and can attend depositions at their own expense, however he did not grant them the right to full intervention.

KK-PB Financial LLC is involved in a foreclosure lawsuit against the Palm House and is claiming to be owed a total of $27 million.  Judge Blanc says the motion has been denied without prejudice. Blanc also stated that “if KK-PB Financial, LLC can establish for the court that the value of the property is directly impacted by the $2,000 a day fine, and that the towns fine will take priority over intervenor’s mortgage, the court will re-entertain the motion to intervene”.

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