Owners weary of litigation at Key Biscayne’s biggest luxury condo complex should brace themselves for even more expense: the complex’s master association filed an appeal last month in its long-running case against the EmeraldBay condo.

EmeraldBay, which won the case in March, is seeking $222,000 in attorneys’ fees and costs from the Key Colony Homeowners’ Association, according to court papers. Attorney Craig Minko’s five-member legal team based its claim on a section of the court ruling declaring that EmeraldBay could seek an award for the firm’s fees. Because the unit owners at EmeraldBay are also members of the HOA, the case means that some owners are technically suing themselves — in addition to their neighbors in the three other buildings. It’s unclear whether the HOA would be entitled to any insurance coverage, since it initiated the lawsuit. The underlying dispute is about maintenance fees and the relationship between the five entities at Key Colony — the four building associations and the master association comprising 1,179 units.

 

While the individual buildings maintain each of their properties, the HOA maintains the entry gate, roads, tennis courts, convenience center, and the private Atlantic Ocean beach.

 

For three decades, the four buildings would collect both their maintenance fees and the HOA fees. The buildings would pay the full amount of the HOA fees for each unit, even if an individual unit owner were delinquent — essentially “fronting” the money to the HOA.

In 2022, EmeraldBay said it would only remit HOA fees collected. The HOA then filed suit. But Miami-Dade Circuit Court Judge Migna Sanchez-Llorens put aside the HOA’s arguments, saying nothing in the Key Colony governing documents required EmerladBay to be a fee guarantor and remit fees it didn’t collect. She said HOA can simply lien delinquent owners for any unpaid fees.

Before filing its appeal on May 28, the HOA wrote to EmeraldBay that its fee demand was procedurally flawed. HOA attorney Joel Gaulkin wrote that EmeraldBay missed a deadline — by one day — to file a motion seeking “entitlement” to fees.

Dr. Arnold Muñoz, the current HOA president, did not return a message seeking comment. There have been no communications to Key Colony owners about the case, although directors have had several closed-door sessions about the litigation.

An appellate case can take a year or more to resolve. The amount of the fees is also still pending in front of Judge Sanchez-Llorens. A date for a hearing has yet to be set.