Article Courtesy of  The Palm Beach Post

By Jane Musgrave

Published January 19, 2006

WEST PALM BEACH — After being battered by three hurricanes, the Tiara condominium is now being buffeted by lawsuits.

An Orlando company that helped dry out the 42-story oceanfront condo in the wake of Hurricane Frances filed suit on Wednesday, saying the association has failed to pay its bill.

In the suit filed in Palm Beach County Circuit Court, Emergency Insurance Restoration Service said it is owed $500,000 of its $1 million bill.

Eddie Kisco, president of the association of the Riviera Beach condominium, said the reason the bill hasn't been paid is simple: "We're out of funds."

Until Citizens Property Insurance Corp., the state-sponsored homeowner insurer of last resort, honors its obligation to cover the damage the building sustained in Hurricanes Frances and Jeanne in September 2004, the association is strapped, he said.

He said he is hopeful that a lawsuit the association filed against the insurer will spur it to pay the estimated $50 million the association says it owes. Citizens already has paid $41 million.

In addition, he said the association is seeking a $50 million loan to cover the costs of the estimated $120 million reconstruction project.

"We're continuing to meet with financial institutions," he said. "Money is available, but at outrageous interest rates."

The association two weeks ago was sued by one of the owners of the 320 units, claiming the board has mismanaged the reconstruction.

Ali Kas, a New York man who owns five units, asked a professional manager be appointed to oversee the project.