Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Condo association allegedly disparaged, conspired to ban construction company from premises, (Jun 19, 2015)

By Linda O’Brien, J.D., LL.M.

A condominium association, several association directors, and a property management company conspired to control and restrain construction in a condominium building by actively disparaging and prohibiting a construction company and a contractor from providing construction services to condominium residents, according to a complaint filed in the federal district court in West Palm Beach, Florida (Bela Vista Contractors, Inc. v. Tierra Del Mar Condominium Association, Inc., June 18, 2015).

Bela Vista Contractors, Inc. is a construction company located in Pompano Beach, Florida. Harold Hoisington is an independent contractor in the construction industry. Tierra Del Mar Condominium Association is a nonprofit corporation based in Boca Raton, Florida. Royale Management Services, Inc. is the property manager for Tierra Del Mar condominiums.

The complaint states that Bela Vista and Hoisington have performed work for condominium owners at Tierra Del Mar for over 15 years. All work completed by Bela Vista has met industry standards and all Tierra Del Mar customers have been satisfied with the work by Bela Vista and Hoisington.

According to the complaint, Brian Upon, after his election as director of the Tierra Del Mar Condominium Association, conspired with other directors to steer construction and maintenance contracts to family members and friends and to appropriate funds from the association to those related parties. Under the disguise of demanding that condominium owners prepare for hurricane season, the defendant directors and property management company allegedly published—through postings, electronic communications, and oral statements—that Bela Vista and Hoisington had performed “shoddy” work and put the building in jeopardy for the upcoming hurricane season. The defendants also allegedly told condominium owners that Hoisington had criminal convictions and exposed unrelated past family matters.

Condominium owners are required to purchase services from a board-approved construction company. The defendants were charged with posting notices that Bela Vista and Hoisington were not allowed in the building or on the property. Upton and the other directors allegedly used their positions to threaten, intimidate, and degrade condominium owners in their efforts to gain control of the association. Through their conspiracy, the defendants restrained business in the Tierra Del Mar Condominium building and unlawfully prohibited Bela Vista and Hoisington from engaging in ongoing and future business, the complaint charged.

The goodwill of a construction contractor has intangible business value which reflects a customer’s willingness to do business with a contractor who offers the type and quality of service the customers desires and expects. Bela Vista suffered the destruction of its goodwill by the intentional misrepresentations of the association, directors, and property management company regarding the quality and service provided by the plaintiffs, according to the plaintiffs. Additionally, several construction contracts with condominium owners were cancelled, and other owners refused to hire the plaintiffs due to the ongoing unlawful conduct of the defendants, the complaint charges.

The plaintiff asserts claims for libel and slander, tortious interference with business relationship, intentional misrepresentation of goodwill, and violations of Sections 1 and 2 of the Sherman Act, Clayton Act, Florida Antitrust Act, and Racketeer Influenced and Corrupt Organizations Act. The action seeks declaratory and injunctive relief, an accounting, punitive and treble damages, pre- and post-judgment interest, costs of suit, attorney fees, and any other just and proper relief.

The case is No. 9:15-cv-80863-DMM.

Attorneys: Tonia Troutwine for Bela Vista Contractors, Inc. and Harold Hoisington.

Companies: Bela Vista Contractors, Inc.; Tierra Del Mar Condominium Association, Inc.; Royale Management Services, Inc.

News: Antitrust RICO FloridaNews