The bankrupt Palm Greens Recreation Association in Delray Beach is looking for yet another lawyer to represent it as the association tries to fend off an attempt to have a court-appointed trustee oversee its finances.
The association, which manages leisure amenities for two condo complexes at Palm Greens, already fired its initial lawyer, Tate Russack of Venice. The association accused Russack in its Chapter 11 filings of misrepresenting his experience and overcharging the association by billing $93,861 for less than a month of work.
Bankruptcy Court Judge Erik Kimball recently cut Russack’s fee by 50%. He also ordered Russack to refund nearly $78,000 in fees that had already been paid.
Now the second lawyer hired by the association, Mark Roher, who replaced Russack in the latter part of March, wants out. He stated in a court filing that “Irreconcilable differences have arisen between Debtor and Attorney making Attorney’s continued representation of the Debtor impossible under the circumstance.”
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Roher filed an emergency motion to withdraw as counsel and called on the court to postpone April 8 hearings until an attorney can be hired to replace him. Roher wants the court to approve a $50,000 payment to him for his legal work.
While Palm Greens’ two condo homeowner associations are not part of the bankruptcy, they are affected because they fund the Recreation Association that manages the recreational amenities for the 1,400-home community.
Built more than 50 years ago, the 55-plus community is located north of Lake Ida Road, between Military Trail and Jog Road. The complex is one of the larger condo developments in the county.
The bankruptcy case continues to grow more convoluted with each passing day.
The Recreation Association filed for bankruptcy on Jan. 28. Then it held a PowerPoint presentation on March 31 to explain why.
The meeting ended in chaos after some Palm Greens’ owners demanded the resignation of Recreation Association President Lisa DeFabritiis. She adjourned the meeting without taking questions after shouting matches broke out.
The Clubhouse built by Lennar to serve Palm Greens and Delray Trails opened earlier this year.
One of the two condo associations at Palm Greens, Condo 2, has called on the court to appoint a trustee, a move the Recreation Association vehemently opposes. Condo 2 lawyers say a trustee is needed to prevent “gross mismanagement of the Recreation Association’s limited resources.”
Rohrer’s request to withdraw as the association’s lawyer casts doubt on whether any of the scheduled hearings will occur next week. Roher told the judge, Kimball, the Recreation Association is prepared to hire an experienced bankruptcy attorney, and that new lawyer will need time to become familiar with the complicated case.
DeFabritiis alleged at her community presentation that Condo 2 is aligned with homebuilder Lennar to seize the association’s assets, a charge Condo 2 denies. Condo 2 opposes the delays being sought by the Recreation Association and is insistent that a trustee be appointed to over the association.
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Delray Beach condo bankruptcy deepens as second lawyer quits
