Nautilus Cove Condo - 2008 Civil Suit

The End, after over 3 yrs and nearly $11,000 in condo funds

2011-10-26T13:47:00.002-05:00

The Case is over, the check is cashed. Hopefully the Board of Directors will take Owners complaints seriously in the future. This time they ignored the problem for over 3 years and it cost the owners of the other 167 units about $11,000 (my $7,000 and probably another $3,644 for the condo attorney.)

2011-06-06T13:46:00.000-05:00

Why is the Association giving me $7,000?

2011-05-27T16:40:00.005-05:00

A. It's my birthday and they wanted to do something nice,

B. One of the alligators in the retention pond ate my cat,
C. The condo lawyer told them they didn't have a snowballs chance in Hell of winning the June 10 case,
D. None of the above

The correct answer is 'D', although 'C' is probably what any fly on the wall would have heard when the condo attorney had a final talk with the BOD about their chances at the June 10th trial.
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Misc Info:

This $7,000 represents reimbursement for my own costs of filing and the attorney fees accrued by me since June of 2008. You can add to this amount another $3,644 for the cost of the BOD's own lawyer, so the total amount of your association dues spent on this totally unnecessary suit is nearly $11,000.

It was without any question a suit that never needed to be filed, all the various BOD's from my initial complaints to them and Concord Management Ltd, from Aug. 2007 onward, had the opportunity to enforce the condo documents regarding the rental of condos here and none would do so. The complaints and subsequent suit were simply ignored by the Board. Even after the half of the suit naming Waterstone Resort Realty LLC (with Alan O'Neal, Managing member) was settled the BOD part dragged on for another unnecessary year.

The matter ended two weeks before the Condo would have been required to appear in Bay County Court for a half day trial on the issues, a trial they hadn't a hope of winning, thus the settlement at the last minute. Florida law and condo regulations provide that suits against condo boards are 'loser pays all', (ie: you lose then you pay all expenses, you win the condo pays them). In this instance the condo settled before a half day trial that would have added another 5K to its expenses. Why they did not settle a year ago when Waterstone did, well, that you might ask them, they were asked twice and we got absolutely NO reply.

Since Nov 2010 the Owners have a majority on the Board of Directors and we should expect that serious changes be made. There has been only 1 BOD meeting since the AGM on 1/29/11 and only an easement and approval for the settlement were on the adgenda. It is past time for the BOD to actually do something. Being a 'Member' of the Board of Directors is a job it isn't just a nice title. My business card gives my opinion on how things should be done, it says: "Lead, Follow, or get the Hell out of the way!"

I hope that the next AGM, probably in Dec., will get a good crop of people who would like to take part in the running of the condo.

2011-05-15T22:30:00.001-05:00

Settlement Agreement - Pending Case Dismissal

2011-05-04T13:14:00.006-05:00

After the case is dismissed there will be a further statement and a mailing to most of the NCC Owners regarding the matter.

You may note that there is no confidentiality agreement so the Owners will be fully informed on this long running problem.

Bill Harris
5/4/11

As Filed with Court

2011-03-31T16:24:00.002-05:00

Applebaum files Answer on behalf of Condo Assn.

2011-03-28T20:56:00.008-05:00

3/28/2011 ANSWER - NAUTILUS COVE CONDOMINIUM ASSOC INC TO AMENDED COMPLAINT

Applebaum has the case number wrong, he lists 08-1565CA rather than the correct 08-2529 CA. When Jack Williams for Waterstone Resort Realty LLC put in his Answer and Affirmative Defense (11/3/08) he did it in 2 pages, Applebaum took 5 to do the same thing.

Other than saying the Condo Declaration ‘speaks for itself’ the only thing they seem to rely on is the 5/14/08 letter of David Milam, who replies to my attorney Whiteheads letter of 4/14/08, and Milam who simply says that “. . . my conclusion is that these allegations do not constitute a violation of the Declaration.”

Click on page for large clear copy

Update on Harris v. NCC BOD Suit

2011-03-24T16:21:00.003-05:00

For those few Owners who are following my suit against the Condo Assn, here is a brief update: There was a Case Management Conference today with Judge Fensom and Assn. Attorney Applebaum. The date established for trial is June 10th. You might recall that 10 months ago the half of the suit against Waterstone Resort Realty LLC was settled, leaving only the Condo Assn as defendant.

Two letters from my attorney via their attorney to the Board were simply ignored. No 'yes, we will settle' no 'no, we won't settle', just no reply at all. This is pretty typical of the old Developer controlled Board of Directors. I was somewhat surprised that the 'new' BOD, which has 2 Owners (of the 3 Board positions), did not weigh in on a settlement.

The settlement up to today would have been:
1) an agreement that the BOD would adhere to the Condo documents in the renting out of units, and
2) payment of my legal expenses to date of $6,500

The matter has from day one, been available for settlement and has only proceeded due to the BOD ignoring my requests that it follow the condo documents.

My expenses to and including the trial on June 10th will be at least $12,000 with an estimate that the Condo Assn will be out of pocket around the same amount. This is all money that the Owners here will be paying, probably via a 'special assessment' as this amount is not provided for in the 2011 Budget.

The various letters, pleadings etc are found on a seperate blog site: http://nautiluscovesuit2008.blogspot.com/

2011-03-23T13:21:00.000-05:00

Next Activity in this case is set for a half day trial in Judge Fensom's Court on June 10, 2011.

2011-02-24T00:45:00.000-06:00

The next court date for this is March 23rd for a case management conference at 10:30 a.m.

A New Filing

2011-02-07T13:53:00.003-06:00

2011-01-18T09:13:00.000-06:00

Now that there is a newly configured Board of Directors I have instructed my lawyer to again contact their attorney Applebaum with a settlement offer which will be the exact same offer as 4 months ago: $6,500 and a definitive statement that the BOD will enforce the documents regarding the rental of condos at the complex.

The prior letter to the association was totally ignored, no reply at all. This was to the Developer controlled BOD, now that there is a new BOD perhaps we will end up with an answer.

2010-05-26T15:48:00.007-05:00

This action was initially filed against both the Condo BOD and Waterstone Resort Realty LLC, the latter having become nothing more than a shell company the case against them has been settled per the below letter and Court filing. The matter now continues against just the Condo BOD.

Double click for larger image.

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How is the Case Progressing?

2010-05-07T17:29:00.006-05:00

June 2010 - Update:

William Harris vs. Waterstone Resort Realty,LLC and Nautilus Cove Condominium Association, Inc.

For photos of the violations see:http://mariottforeighemployees.blogspot.com/

There are currently two civil actions filed against the NCC BOD, one was filed by two owners when their expensive cycles were stolen from the property during one of those periods when our ‘gated’ community gates were broken and anyone could come into the complex. (Update Feb 2011: this case was 'settled', the condo was represented by our Insurance company and it did not cost us anything directly, probably the insurance premiums will go up, but the case is now closed)
The 2nd is mine and it was initially filed on June 10, 2008 when the BOD and Concord Management company ignored 12 months of my complaints about Waterstone Resort Realty’s renting out their condos in building 7 to tenants who then used them to house imported foreign workers who were employeed at the Marriott Resort in PCB.

Per Florida law the loser pays the winners costs and fees. I have so far paid out $6,500 and the condo has probably paid out more than that.

All this was entirely unnecessary. The BOD and ‘Officers’ of the Assn. were all Developers of this complex. Not only were my complaints totally ignored I was told, incorrectly, that Waterstone could have anyone they wanted live there.

The Developers sold Waterstone 4 condos and me just one. They hoped that Waterstone would buy more condos from them and were quite willing to let Waterstone do anything they wanted with their 4 condos even if it was entirely against 3 major sections of the condo documents.

Waterstone is long gone from this complex, their 4 condos were foreclosed on by Compass Bank and Waterstone is being sued twice by Compass Bank, we have liens against Waterstone for unpaid assessments. The Developers as the BOD and Officers have poorly served the complex and cost owners here thousands of dollars in un-needed legal bills and the matter continues to drag on due to many delays caused by both the BOD and Waterstone.

The BOD will come under owner control with the election of a 2nd owner BOD member in later in 2010. Perhaps the matter can be concluded shortly after the new board takes control, if not we could waste another 2 years in doing depositions and interrogatories before even taking the matter to trial.

I have all along been asking for:
1) a stipulation that the NCC BOD will enforce the condo documents applying to rentals of units, and
2) payment of my legal costs (this latter is as provided for both in the condo documents and Florida law).

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Order for Substitution of Counsel

2010-05-05T08:52:00.003-05:00

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Motion to Set Trial Date

2010-03-04T13:53:00.003-06:00

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Arbitration Declined by State of Florida

2010-03-03T14:33:00.001-06:00

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Arbitration Filing

2010-02-15T21:26:00.005-06:00

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2010-02-15T21:11:00.003-06:00

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Arbitration - Facts of the Complaint

2010-02-15T16:55:00.001-06:00

Arbitration - Governing Documents

2010-02-15T09:45:00.002-06:00

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2010-02-13T21:48:00.001-06:00

Arbitration Order of 10-22-09

2009-11-06T12:48:00.003-06:00

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2009-10-26T22:09:00.002-05:00

If you want just info about the Nautilus Cove Condo then go to this blog, http://nautiluscondosrules.blogspot.com/, if you want to know about the civil suit against the BOD and Waterstone/NCPCB then you have come to the right place, just keep reading, this is the site you want to look at.

Hearing Set for Oct 6, 2009

2009-08-29T11:36:00.001-05:00

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Update:

2009-06-03T14:11:00.002-05:00

The Nautilus Cove / Waterstone Suit
For those of you following this civil suit you might recall that it started on June 10, 2008 and on Jan 13, 2009 this matter was scheduled for arbitration May 12, 2009 at 9:30 a.m., at the law office of Hutto and Bodiford in Panama City, Florida. The attorney for Nautilus Cove Condominium is Steven Applebaum who had insisted that the matter go to arbitration and initially they had agreed to the arbitration date.

In the latest nonsense from attorney Applebaum, he writes in part: "I cannot agree to the arbitration that is presently scheduled for May 12, 2009, in the above referenced matter. My assistant scheduled the arbitration date without my knowledge and I have just been made aware of said date . . . my client will not be attending the arbitration . . . and I ask that it be cancelled. In any event my client will not be bound by any decision made at arbitration if you intend to move forward with the arbitration."

Total costs to date are estimated at $25,000 and per florida law the loser pays the winners costs and fees. That means 'when' I win, you, the other condo owners at NCC will pay my all costs as well as the costs of the NCC attorney.

All this was entirely unnecessary if the developer controlled BOD had acted on my 9+ months of complaints about Waterstones' renter using the condos as a dorm for foreign workers. This same Waterstone is now in foreclosure for these 4 condos and owe the BOD over $5,600 in unpaid assessments.

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More Delay by Nautilus Cove Attorney

2009-05-30T12:41:00.005-05:00

We did not believe we needed to go to arbitration in this matter but it was at the insistance of NCC attorney Applebaum that it was set to be arbitrated June 12th. 2 weeks before hand it was abruptly canceled by Applebaum although it had been set for several months. He said 'an associate' had agreed to the setting and had no authority to do so.

Double click for larger image or print out for file:

2009-01-25T19:56:00.000-06:00

Waterstone Interrogatories

2009-01-21T12:12:00.007-06:00

6 additional pages of the actual questions are not provided here, when answered they will be posted:

Throwing Stones at Waterstone

2009-01-12T17:39:00.002-06:00

You can find this article at the local blog site:
http://pcbdaily.com/?p=3249
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Throwing Stones at Waterstone
Written by Jason Koertge

Last Updated: January 12, 2009

Waterstone Resorts and Vacation Homes offer vacation rentals all over the state of Florida. On Panama City Beach they claim to manage properties from ten different resorts. The company’s website is full of glowing reviews and recommendations but if someone just scratches the Google search service a little, they will find numerous negative claims about Waterstone. If that is not enough a check of their status with the Better Business Bureau (BBB) finds a C- rating due to a series of unresolved complaints. On a Waterstone blog website there is evidence that the BBB has given them an unsatisfactory rating, but this has not been discovered in any BBB materials as of yet.

“Waterstone Sucks,” seems to be the ringing sentiment of many current and past clients of the company found on blog websites all over the internet.

Jim Pitts, an owner at Calypso Resorts and Towers that used Waterstone, stated that he inspected his unit three times last year and each time the unit was filthy.
“The carpet was so dirty it had to be replaced,” Pitts said. “There was filth everywhere. The walls were marked up, dust and dirt caked on baseboards, light bulbs and even the toaster was dirty.”

Pitts wrote a handwritten note and email to Waterstone stating that he no longer wanted them to manage his properties. His communications went ignored until he sent a certified letter sometime later demanding that tenants be removed from his property and that Waterstone cease any further management of his property.
Pitts also feels that the company is unethical and unfair in their fee structure and maintenance.

“They charge the owner for travel agent fees on top of their own (fees) and they charge the owner for ‘credit card’ use. They will charge the owner a minimum of $22.50 every time they so much as set foot in the unit to do anything,” Pitts said.

“They rip the owners off with the keyless entry crap and owners of Calypso units need to understand that these people are absolutely ruining our investments. They need to be removed from the premises.”

Bill Harris, another individual who has had dealings with Waterstone, has set up numerous blog websites for angered property owners to vent their passions about Waterstone. These can be found at: http://www.waterstonerealty.blogspot.com/,
http://www.calypsoresorttowers.blogspot.com/, http://www.nautiluscovesuit2008.blogspot.com/ and http://www.nautiluscondosrules.blogspot.com/ .

Harris claims that Waterstone owns four units at Nautilus Cove Condominiums and that the company is currently past due on their condo’s quarterly assessments. There is also evidence that the State of Florida has already four outstanding liens against the company for over $118,000. If the Nautilus Cove past due amounts were not paid by the end of ’08 then Waterstone will be facing new liens.

Waterstone seems to find them self in a public relation nightmare. When a company ignores claims from concerned clients, there are avenues that these clients can take to attack the company’s reputation. As of right now, a Google search of “Waterstone Panama City” brings up typical listings for the company. The company should be aware that as these blog websites attract new participants there could be a day, not far off, that one of these blog websites could be ranked by a search engine right underneath the Waterstone website or even above it.

The Destin Log of Aug. 13, 2008

2008-12-27T18:34:00.000-06:00

Man challenges Destin’s Waterstone with lawsuit over foreign workers

August 13, 2008

by: Fraser Sherman

Bill Harris says he’d have been much happier if he could have avoided a lawsuit over alleged illegal rentals in Panama City Beach’s Nautilus Cove Condominiums.

"I’m 62 years old and I’ve never sued anyone in my life," Harris, who filed suit last month, told The Log. "It was only after nine to 10 months of complaints that I hired an attorney — at that time I thought that just paying $300 for attorney letters to the board of directors and Waterstone (Resorts) would finally do the trick."

Harris, who hired Destin attorney R. Scott Whitehead http://www.whiteheadpa.com/index.jsp to represent him, said he’s still hoping to settle out of court, but although he’s been told the problems are resolved, he’s not yet convinced.

Harris said that after moving into Nautilus Cove in May 2007, he noticed that the condo unit directly above his, owned by Waterstone Resorts Realty in Destin, held seven Asians working at a local resort.

Harris said he complained to Waterstone Resorts, which told him the condo had been rented to one individual and the problem would be dealt with. After leaving for a medical treatment, Harris said, "When I came back, three apartments were involved."

After repeated complaints to the board of directors that this violated the condo association rules, Waterstone and the management company — none of whom returned The Log’s calls — Harris hired the Destin attorney to write to them as a "shot across the bows." When nothing changed, he filed in court.

The lawsuit names Waterstone, Nautilus Cove and two Waterstone employees as defendants.

Since filing, Harris said, he’s been told "the situation is corrected, now they’re renting out more appropriately," but having been out of the area, he doesn’t know if it’s true.

Harris said he’s willing to settle, but only if everyone on the other side agrees to the terms: "I want assurances that this is going to stop and enforce the documents as written. Plus I want my expenses to date paid."Harris said he’s generally disappointed with Nautilus Cove because only half of the 168 units have sold and the rest are now being rented out so "I live in an apartment complex."

Harris has also taken his fight to the Web, posting reports on the lawsuit and relevant documents to nautiluscovesuit2008.blogspot.com.

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This story is available at:
http://www.thedestinlog.com/news/lawsuit_5907___article.html/bill_says.html
Also take a look at:
http://nautiluscondosrules.blogspot.com

2008-11-08T20:52:00.001-06:00

The Waterstone 'defense' is below and that part of the case continues.
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William Harris v. NCC Association

2008-10-27T17:05:00.008-05:00

NCC during construction:

2008-08-14T16:07:00.002-05:00

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Post Card

2008-08-05T09:21:00.002-05:00

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2008-06-14T21:20:00.007-05:00

EXTRA! EXTRA! In a man bites dog case - a condo owner sues his Board of Directors for NOT enforcing the condo documents!

In what must be the laziest condo board in Florida, the Nautilus Cove Condominium Assn. was sued June 10th in a Panama City Circuit Court for 10 months of neglect for NOT enforcing the NCC condo documents. Unit owner, Bill Harris, is asking the Circuit Court to: "Enter an order requiring the defendant condominium association to enforce its own rules and regulations", he is also asking for 'costs' (ie: attorney fees and court filing fees) and other unspecified relief from the Court.

The BOD consists of 3 members, 2 appointed by the Developer, Nautilus Development Partners (Maitland, Fla) and a 3rd, an owner member, Leonard J. DiGiacomo of unit 616, who replaced Ms.Jones who resigned earlier in June. Mr. DiGiacomo had run for the BOD spot initially and got 11 votes in that election but was 2nd to Ms. Jones. He is now appointed to the BOD position.

2008-06-09T07:12:00.000-05:00

Shown here are imported foreign workers leaving for work on a typical day. The white Ford van picks them up and takes them to the Marriott, in the evening they return by the same van.

On Sat. 4/9/08 8:30 a.m. 9 workers went off to work at the Marriott. The number of foreign workers living here in 716 & 714 (Waterstone owned Condos) varies as do the countries they are from. Waterstone has ignored complaints to them about the misuse of their rented condos and now 'legal' action seems imminent by a NCC owner who has been complaining about the situation since August of last year.

Additional photos can be found at:
http://mariottforeighemployees.blogspot.com and

http://pictures.aol.com/galleries/legalservices08

Photo Nautilus Cove Condominium - Panama City Beach, Florida

2008-05-28T16:52:00.002-05:00

2 Whitehead Letters

2008-05-28T16:41:00.003-05:00

Atty Milam Reply to Whitehead Letter

2008-05-28T15:39:00.004-05:00

A Good Idea. But where were they a year ago with this?

2008-05-28T14:13:00.000-05:00

2008-05-09T07:17:00.003-05:00

Here is one Q & A from the Division of Florida Land Sales, Condominiums and Mobile Homes which is relevant to the current ongoing civil suit against NCC Assn and Waterstone:

#28. If I win a lawsuit against the association, can I recover attorney fees and assessment fees that I paid the association to defend the lawsuit?

A unit owner prevailing in an action between the association and the unit owner, in addition to recovering his reasonable attorney's fees, may recover additional amounts as determined by the court to be necessary to reimburse the unit owner for his share of assessments levied by the association to fund its litigation expenses.

F.S.Condominium: Section 718.303(1),

F.S.Cooperative: Section 719.303(1)

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In a brief one paragraph reply to my attorney's letter, Atty. David H. Hilam of Dunlap, Toole, Shipman & Whitney, PA stated that he did not acknowledge any breach of condo regulations. This is from an FSU grad (J.D. in 2004), so it is about what you would expect.

Here are relevant sections of our Rules & Regulation and other documents which Mr. Hilam seems to have overlooked or judged to be unimportant:

Rules & Regulations at 12. Use Restrictions, 12.1 Residential Use. "The condominium units ... may be used for single-family residential living and for no other purpose."

Further at 14 Leasing of Units, 14.3 Occupancy During Lease Term. "No one but the lessee, and his family within the first degree of relationship by blood, adoption or marriage, and their guests may occupy the Unit"

And 14.4 Occupancy in Absense of Lessee. "If a lessee absents himself from the unit for any period of time during the lease term, his family already in residence may continue to occupy the unit. If the lessee and all of the family members mentioned in the foregoing sentence are absent, no other person may occupy the Unit."

There are other sections defining who 'guests' are (Marriott or labor contractor employees do not qualify) and how occupants of all rental units must register with the Manager before or at the time of occupancy (Marriott or labor contractor employees are not so registered).

In the face of this intrangence there is, unfortunately, no other option but litigation which will eventually cost the condo owners at NCC at least $10,000 and more if there is an appeal from NCC Assn. or Waterstone.

I guess it is their opinion that:

1) it ain't their money,

2) never admit you screwed up,

3) he wouldn't dare sue us or,

4) all of the above

2008-04-30T22:00:00.000-05:00

Web Sites of Possible Interest to You:

2008-04-08T18:37:00.000-05:00