Consumer

Miami's The Related Group Faces A Lawsuit

MIAMI (CBS4) ― One of South Florida's biggest developers was served late today with a lawsuit that could end up costing it millions. Several people who bought condos from The Related Group are claiming they are owed thousands of dollars for not closing on their deals.

For a Downtown Miami that has become so scenic, things are getting ugly. The crashing housing market is compelling many investors to walk away from half-million dollar condos they agreed to buy three years ago. At the 50 Biscayne project, walking away means you lose the deposit—typically $100,000.

But some lawyers are saying, "not so fast".

"I'm guessing that a lot of people in this class don't know that Related Group owes them a check," said Attorney Jared Beck.

It's a strange concept, but attorney Jared Beck believes anyone who walked away from their contract at 50 Biscayne in Downtown is likely due at least $25,000 from the developer.

"It's basic arithmetic; they are owed money," said Beck. "Where is the money? That's the big question."

Beck is making his claim based on the 50 Biscayne contract.

Clause 13 states what happens if a buyer defaults or doesn't close. It states that the, "Seller will refund to the buyer any amount which remains from the payment buyer made after subtracting fifteen percent of the purchase price."

"Frankly we all have fingers and toes. 20 minus 15 is 5% and everyone put down 20%," said Attorney Elizabeth Lee Beck.

Beck says she approached the Related group around Thanksgiving wither her math problem and demanded her client be paid.

"After months of going back and forth, they don't have a reason," she said. "So what we feel is the developer is saying you have to file suit to get the money you are entitled."

"$25,000 dollars is $25,000," said Mitchell  Becker. "More importantly is money that I deserve."

Becker spoke to CBS4 News via telephone from North Carolina, where he's moved. He believes The Related has much more to lose than just money.

"It's sad commentary when the developer doesn't live within the terms of the contract," said Becker.

As for how many people could be out there due a check: "It looks like over 200 people, that's our estimate," said Jared Beck.

They are looking for class action status.

As for the developer, The Related Group was served with papers and did not specifically respond to the allegations. However, they did say they will defend against any lawsuit.

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