The Palm Greens Recreation Association filed for bankruptcy in January after it says litigation costs prevented it from paying its bills.
While the Delray Beach-area’s community’s two condo associations are not part of the bankruptcy, they are affected since they fund the association, which oversees the 1,400-home site’s recreational amenities. Built more than 50 years ago, the 55-plus community is north of Lake Ida Road between Military Trail and Jog Road. The complex is one of the larger condo developments in the county.
The bankruptcy case has become even more convoluted with recent filings showing that the Recreation Association fired its lawyer, calling on U.S. Bankruptcy Court Judge Erik P. Kimball to refuse to pay them because they are allegedly so excessive.
Here are five things to know about the latest filings.
Why did the Palm Greens Recreation Association fire its lawyer
The new lawyer, Mark Rohrer of Plantation, claims his predecessor, Tate Russack of Venice, misrepresented his experience and charged $93,861 for less than a month of work. Russack, however, has defended his billings, claiming his work was done on an accelerated basis to accommodate the Recreation Association, and that the association is simply trying to avoid paying him.
What do the ousted lawyer’s bills show?
The detailed billing statements indicate a contentious relationship between Russack and the Recreation Association. Russack alleges in his billing narratives that a Recreation Association board member threatened him for recommending that the association try to settle numerous lawsuits that had forced the entity into bankruptcy.
Did a board member ask the Recreation Association to pay for personal lawsuit?
Among other issues, the bankruptcy court judge has questioned why the association paid legal fees for a defamation lawsuit involving Recreation Association board member Arthur Robbins.
U.S. Bankruptcy Court Judge Erik P. Kimball noted that the matter was a personal issue and did not involve the Recreation Association.
What’s the status of the dozen lawsuits involving the Recreation Association?
One of the reasons for filing for bankrputcy was to bring all the lawsuits involving the Recreation Association in state courts into the bankruptcy court, but Kimball has already questioned whether that should happen.
Some of them were about to be resolved by state circuit judges when the Chapter 11 filing occurred.
Could a trustee be appointed to oversee the Recreation Association?
It’s possible, and Kimball is expected to address the issue soon. A trustee would review the association’s financial records to ensure that assets are accounted for, and creditors are treated fairly.
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Delray Beach condo’s bankruptcy case has new twist. What to know
Reporting by Mike Diamond, Palm Beach Post / Palm Beach Post
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