Miami Herald

Lawsuit by Miami real estate developer Avra Jain nears end

- BY RENE RODRIGUEZ rrodriguez@miamiheral­d.com

Miami real estate developer Avra Jain, photograph­ed in the pool area of the Vagabond Hotel in April 2016.

A judge in a longstandi­ng case involving high-profile real estate developer Avra Jain brought the saga to a whimpering close on Thursday.

The current matter is a malpractic­e suit Jain brought against her former lawyers, which was dismissed. The lawsuit stems from a complicate­d and costly case that began in 2009, when Jain’s former business partner Abraham Cohen sued her for $4.1 million, claiming she had stopped making payments on his $5 million stake in a failed luxury condo developmen­t in Doral.

Jain countersue­d using the law firm Buchanan Ingersoll & Rooney, claiming Cohen had misled her about the project’s viability in order to buy him out.

For more than a decade, the case has stretched out into a series of countersui­ts, switches in legal teams, efforts to enter new evidence, allegation­s of legal malpractic­e, an appearance before the Florida Supreme

Court and more than $1 million in unpaid legal bills.

In 2015, Judge Jacqueline Hogan Scola ruled in Cohen’s favor and ordered Jain to pay $8.2 million in damages, which included the original $4.1 million plus another $4.1 million in accrued interest. Jain appealed the ruling.

According to court documents, the law firm Buchanan Ingersoll & Rooney continued to represent Jain during her appeal with cocounsel Boies Schiller Flexner. The Florida Supreme Court denied the appeal on

June 23, 2017, and ordered Jain to pay.

When Buchanan tried to collect its outstandin­g legal fees of $1.5 million in November 2017, Jain sued the firm and shareholde­r Richard Morgan claiming legal malpractic­e, including “failure to timely disclose documents which were excluded from evidence at trial in support of Jain’s countercla­im.”

Wednesday’s ruling marks the likely end of the legal battle. After rejecting Jain’s latest attempt to reopen the case, Miami-Dade Circuit Judge Michael Hanzman left it up to Buchanan Ingersoll & Rooney, the law firm that represente­d Jain during a former lawsuit, whether to pursue its outstandin­g $1.5 million in unpaid legal bills.

If the firm chooses to proceed with the complaint, the case would go to jury trial and Jain would be allowed to amend her original complaint.

The law firm has until Monday to decide whether it will pursue.

LAWSUIT DISMISSED

On March 13, MiamiDade Circuit Judge Hanzman dismissed Jain’s lawsuit against Buchanan Ingersoll, ruling it was “a misguided and desperate attempt to shift Jain’s adjudicate­d contractua­l liability onto her former counsel” and added that “like most Hail Mary’s, this throw falls short of the end zone.”

In an affidavit filed May 13 in advance of Thursday’s hearing, Jain argued that she thought Buchanan Ingersoll were handling the appeal at no cost because of mistakes they had made during the original trial.

Jain also stated she would have never gone through with the appeal if she had known she would have to pay the attorneys.

“I would have never agreed to moving forward with the appeal had I thought it would cost me any money, much less an additional $600,000 in attorney’s fees,” she stated. “I already could not pay the attorney’s fees incurred through trial.”

A MAJOR PLAYER

Jain rose to prominence in 2015 after her $6 million renovation of The Vagabond Hotel, which was built in 1953 and designed by architect Robert Swartburg, who also designed the Delano Hotel on Miami Beach.

She purchased the 45room property at 7301 Biscayne Blvd. in 2012 for $2 million, rescuing it from demolition and converting it into a five-star boutique hotel in the heart of the historic MiMo (Miami Modern) district.

But Jain’s real estate career actually began in the late 1990s in New York

City, renovating properties such as the Cobbleston­e Lofts in Tribeca. She relocated to South Florida in 1999 and began investing in properties with various partners along Biscayne Boulevard, renovating and converting historic buildings such as the South Pacific Motel (now office space), the Knoxon (now a retailcomm­ercial mixed-use project) and the Miami

River Inn, originally built in 1908, now a 38-room hotel.

Jain also teamed with city and county government to convert the historic Superior Apts building in Lemon City into a 19-unit affordable housing building. Her current projects include the 555 River House, a 2.2-acre mixed-use project on the Miami River; a renovation of the Gold Dust Motel in the MiMo district; and 225 Midtown, a new 15-story Class A office tower, financed in part by $33 million in Opportunit­y Zone funds, at 225 NE 24th St.

 ?? CHRISTINA MENDENHALL ??
CHRISTINA MENDENHALL

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