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Condo buyers file lawsuit, allege contracts breached
Tuesday, July 21, 2009 | 10:48 a.m.
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Lawsuits by unhappy buyers of hotel-condominium units in Las Vegas continue to pile up -- the latest involving the Platinum Hotel and Condominium.
Twenty-four Platinum condominium buyers filed suit Friday in U.S. District Court in Las Vegas against Platinum Condominium Development LLC, Marcus Development LLC, Marcus Hotels Inc. and Marcus Management Las Vegas LLC.
The buyers, among other things, allege the defendants breached contracts to properly market their units for rental as hotel rooms and haven't properly shared the rental revenue.
They claim fraudulent concealment of information about the development and violation of the Nevada Deceptive Trade Practices Act. They are seeking rescission of their sales contracts as well as an accounting of the project's finances and the placement of funds at issue into a constructive trust.
"False projections of rental rates, occupancy rates, and the 'quality' of Platinum Condominiums as an excellent investment opportunity were made by the sales agents, at the direction and approval of Platinum and Marcus," the suit charges.
This is one of many lawsuits pending in Las Vegas state and federal courts over condominium and condo-hotel deals arranged when the economy was booming and buyers expected to gain rental income on their investments and see their condominiums rise in value. With the recession, many condominium units now sit unsold and rental income has weakened due to the decline in travel to Las Vegas.
For Platinum, this is the third such suit this year to be filed in federal court in Las Vegas or to be transferred there from Clark County District Court.
In the pending cases, Platinum and Marcus have denied wrongdoing.
Marcus attorneys said in a filing that the plaintiffs in one of the existing cases are "apparently plagued by buyer's remorse now that the Las Vegas real estate and tourism markets have collapsed on an unprecedented scale."
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Sometimes, I wonder why contingency fee lawyers even bother to waste their time filing these sorts of lawsuits. There is no insurance coverage for breach of contract or intentional wrongdoing.
As a result, when this condo developer files bankruptcy, the claims in these lawsuits will be automatically destroyed, and these buyers will get nothing.
Just yesterday, the same thing happened with the Chapter 7 bankruptcy of the 3 endoscopy centers. The only claims remaining will be against the clinics' insurance policies and against the doctors involved. They, too, may eventually file bankruptcy.
Then there's those idiot lawyers running the ad about a class action against IndyMac. Haven't they ever read a newspaper or research the law? IndyMac was seized by the FDIC more than a year ago. There is a law, going way back to the S&L Crisis of the late 1980's, saying FDIC is not economically responsible for torts committed by failed banks, and FDIC is not responsible for performing on oral representations to or contracts with borrowers. So these people will get squat.
A pet peeve. Uneducated, impractical plaintiffs lawyers filing lawsuits that give ordinary consumers false hope.
Hey Cynical Observer: The lawyers aren't wasting their time, the plaintiffs are wasting their money. There's a huge difference.
How can you sue any person or company because the housing bubble burst. If you didn't see it coming, if you didn't realize that a bust always follows a boom, then shame on you. You lost your money, your hopes, and your dreams. People got greedy and couldn't see the forest through the dollar signs.
"People got greedy and couldn't see the forest through the dollar signs"
That's it in one sentence. My guess is more than half the people that bought these condos thinking that they were going to sit back and watch the money roll in do not even live in this country; the ones who do - shame on them!! And the lawyers - most probably know they won't win these cases; they'll still get paid.
It is a shame that most of these new condo buildings are sitting empty and those that are occupied, the owners are stuck with HUGE mortgages on properties that were so inflated in price to begin with that they deserve to get shafted by the downturn. I'm originally from a big city back east with it's share of condo high rises, living in one myself. I always thought THOSE condos were expensive but the prices pale in comparison to what these condos here were being priced at. AND.....considering the construction defect suits still going on here regarding one and two story homes that were built by various builders - who in their right mind would even THINK about living in a high rise building here in Las Vegas? They can't handle building homes let alone high rises!!!
"false predictions of rental rates"?
what?
you mean you aren't get $1500 per month for your 800 sq. ft. condo in one of the ugliest buildings in vegas?
sorry. buyer beware.
a prediction is just that. a PREDICTION.
i can predict the sun will rise in the east tomorrow morning.
i can predict the st. louis cardinals will not win the world series.
i can predict flying monkeys will invade las vegas tomorrow.
do you want to buy flying monkey insurance from me?
A contingency fee means the lawyers don't get any money from the plaintiffs. The only way they get any money is if they win the case. With lawyers not winning every contingency case, they manage to stay in business by getting a large percentage of the awards in the contingency cases they do win. With so many lawyers out there and more graduating every year, it's no surprise when they file lawsuits that seem to have no chance of succeeding. They're praying somebody with deep pockets will pay them to go away.
it appears the condo buyers got burned bad because of their own greed, thinking they'd turn around and double their investment. who in their right mind would want to invest in vegas real estate? its the western version of detroit.