The Real Deal Miami

Purchasers claim deception at W South Beach

March 15, 2010 10:13AM

Multiple lawsuits have been filed against the W South Beach, with buyers claiming they were misled in the purchases of their condos at the hotel. The claims include that the units were smaller than promised, that there would be more units, or that there would be a second pool at the hotel. The buyers seek to get back their deposits on the units, and have filed lawsuits in both federal and state court. A recent ruling at the U.S. Court of Appeals for the 11th Circuit meant a tighter reading of the Interstate Land Sales Act, the federal lawsuit upon which many of these rescission claims are brought, making it more difficult for plaintiffs. Some of the W suits are alleging non-ILSA claims, however. So far around 10 percent of units in the hotel have been sold. [SFBJ]