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Lawsuit Claimed Miami Condo Was A Facade For Sale

MIAMI (CBS4) ― This year the number of investors suing developers has skyrocketed. The investors looking to get out of high-rise contracts are contesting just about everything in the contract, including the building's name. A judge just ruled on the first of these suits and as CBS4's David Sutta reports, the decision is landmark.

For as many condo's going up in South Florida, there are investors trying to get out of their contracts—many of them suing to do it. In Sunny Isles investors are suing Trump Towers, alleging the Trump name is only temporary. In Downtown Miami investors are suing the Related Group over condo deposits they say they are owed, for walking away from the deal.

And in Edgewater, buyers are alleging false advertising. Lawyers are contesting ads featuring Opera Tower ocean front. The building appears surrounded by a marina. Reality is far from that. Margaret Pace Park is actually in front of Opera Tower. The marina is front of another building.

"It really doesn't look like it's waterfront," said Tibor Hollo, Developer of the Opera. "If you look at the picture, it does not. It looks what it is, and they know exactly. They came to our sales center and they know exactly where the property was."

Hollo, was on the receiving end of the federal class action lawsuit—29 people who felt misled.

"No, I would not mislead people," said Hollo. "I gave them exactly what I contracted for."

Lawyers based their suit on a law congress passed in the 1960's to protect out-of-town buyers who bought waterfront property and received swampland. Hollo says that's not the case here.

"This is just a sign of the times that's happening," said Hollo.

Recently a judge agreed with Hollow and tossed the suit out.

"Ultimately what this decision says is don't look at the advertisements look at the documents," said attorney Jared Beck.

Beck, who has similar lawsuits against developers, believes the ruling will be a landmark decision.

"It appears now that developers can put anything they want in their advertisement materials and brochures but as long as they use specific magical words in the contract. That's ok. They are insulated from liability," said Beck.

"It would be devastating if such a ruling went the other way because then people would believe that the contract means nothing, a contract is not a contract," said Hollo.

Experts believe more lawsuits similar to this one will come up in the months to come.

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