Boca Raton – Frank and Nancy Scala have initiated legal action against Via Mizner Owner III, LLC, the developer behind the Mandarin Oriental Residences Boca Raton, accusing the company of breach of contract after failing to deliver a condominium unit by the agreed-upon deadline. The lawsuit highlights the ongoing issues with the completion of Tower 105, part of the larger Via Mizner luxury development project.

Delays in Construction and Broken Promises In April 2021, the Scalas entered into a Purchase Agreement with Via Mizner Owner III, LLC for Unit 812, a luxury condominium in Tower 105, also known as the Residences at Mandarin Oriental. The purchase price for the unit was $4.1 million, with an additional private garage unit acquired through a second addendum to the agreement. The couple made deposits totaling $1,279,000 toward the purchase. Per the terms of the contract, the developer was expected to complete and deliver the unit by June 2021, with a final deadline of June 30, 2024. However, the lawsuit claims that as of August 2024, construction on Tower 105 remains in the early stages, with the structure still incomplete and far from ready for occupancy. According to the plaintiffs, the entire building is only “a few steps beyond a concrete shell,” and there is no indication that completion is imminent.

 

Legal Proceedings and Plaintiff’s Demands

 

On July 5, 2024, the Scalas, through their attorney, formally demanded the return of their deposit, citing the developer’s failure to meet the closing deadline. Despite multiple follow-up attempts, the lawsuit alleges that the developer refused to return the funds or offer any valid explanation for the delay. On August 10, 2024, the Scalas were informed that they were “not entitled” to a return of their deposit, leading to the filing of this legal action.

 

The lawsuit, filed in Palm Beach County Circuit Court, seeks to recover not only the $1.279 million deposit but also accrued interest, pre-judgment interest, and reimbursement for attorney’s fees and court costs. The plaintiffs are demanding compensation for the developer’s breach of contract, asserting that the failure to complete the project has caused them significant financial harm.

Additionally, the complaint references Section 15 of the Purchase Agreement, which outlines the rights of buyers in the event of a developer’s default. It states that if the developer fails to deliver the unit within the agreed timeframe, the buyer may demand a refund of their deposit and pursue damages.
Broader Implications for Boca Raton’s Luxury Real Estate Market

The lawsuit underscores potential issues with major real estate developments in Boca Raton’s high-end property market, particularly those involving luxury brands like Mandarin Oriental. The Via Mizner project, touted as a premier mixed-use development, includes retail spaces, residences, a hotel, and recreational amenities. The delay in completing Tower 105 may have broader implications for other buyers who invested in the development, raising concerns about the developer’s ability to deliver on its promises.

Via Mizner Owner III, LLC, a Delaware-based limited liability company, is listed as the entity responsible for the development of Tower 105. With its principal office in Boca Raton, the company has not yet responded publicly to the lawsuit.

Real estate industry analysts are keeping a close eye on the case, as it could set a precedent for other luxury condo buyers facing similar delays. The outcome could also impact the reputation of the Via Mizner project, which has been positioned as a cornerstone of Boca Raton’s luxury residential market.
Next Steps

The case is expected to proceed in Palm Beach County’s 15th Judicial Circuit Court, with the plaintiffs represented by Hinshaw & Culbertson, a prominent law firm. Depending on the court’s ruling, other buyers affected by similar delays may consider joining the legal action or filing separate lawsuits.

As Boca Raton continues to grow as a destination for high-net-worth individuals seeking upscale living, this case highlights the risks involved in pre-construction investments, particularly when developers fail to meet their obligations. The real estate community will be watching closely to see how the court handles this dispute and what it may mean for future projects in South Florida.