Condo-hotel owner prevails in class-action

A jury this month sided with the owner of Hilton Fort Lauderdale Beach Resort in a $10 million class-action lawsuit brought by unit owners over shared costs.

The unit owners in the condominium-hotel at 505N. Fort Lauderdale Beach Blvd. suedQClubHotel LLC, alleging that the property ownerwas charging fees not authorized by the governing documents.

Larry Litow, the attorney for the defendant, saidQClub had been paying a “wrongfully disproportionate share” of parking, management fees and other costs.

WhenQClub fixed its mistake and started charging the correct amounts in 2012, the unit owners objected, Litow said.

MattWeissing, attorney for the plaintiffs, said in an email he’s pleased thatU.S. District Judge James Cohn in Fort Lauderdale found back-charges totaling more than $11.3million are improper, saving his clients that amount.

“We are obviously disappointed that the jury did not find that those same chargeswere improper for the period of 2013-February 2015,” Weissing wrote.

Accountant BarryMukamal, an expert witness for the defendant, said the jury verdict carries significant implications because it validatesQ Club’s efforts to increase cash flowat the property.

“That directly affects the value of the hotel going forward,” Mukamal said, though Litowsaid the property is not for sale.

In a condo-hotel, the property is professionally managed, and owners rent their units when they’re not staying there.

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