Phoenix condo-owners in Arizona may be eligible for up to $150 million in damages from their condo owners, who say the company’s real estate division broke their lease agreements, and then refused to renew them.
The Arizona Republic reported last week that the condominium association has agreed to pay $14.4 million in penalties for breach of contract and breach of fiduciary duty, which are punishable by up to five years in prison and a $25,000 fine.
The company also is paying $8.4 m to settle lawsuits brought by condo owners.
The condominium board said it is appealing the settlements.
A condo owner in the Scottsdale area of Phoenix filed suit in 2015 alleging that the company didn’t follow its contract with the condo owners and failed to pay them rent.
The condo board settled that lawsuit with the company in July, but the condo association is still facing another lawsuit for breach and breach.
Condo owners are asking the Arizona Supreme Court to stop the condo-sale company from issuing new real estate leases without paying them the full rent.
“The condominiums are in danger of becoming an illegal enterprise, as this company continues to take advantage of the condoners’ vulnerable condition to continue to rent apartments at inflated prices,” said James W. Staley, the president of the Scottingdale Condominium Association, in a statement.
“We will vigorously defend our rights and will continue to fight for our rights.”