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Peloro Miami Beach at the center of scaffolding dispute for more than $600K

PERI Formwork Systems alleges that Micon Scaffolding breached its contract and took property for its own use
By Francisco Alvarado | September 26, 2017 02:00PM

Peloro Miami Beach rendering (Credit: Cervera Real Estate)

A subcontractor who worked on Peloro Miami Beach, a condo building being co-developed by the Disney family, is accused of renting more than $600,000 worth of equipment and not paying for it, according to a lawsuit recently filed in Miami-Dade Circuit Court.

Elkridge, Maryland-based PERI Formwork Systems accuses Micon Scaffolding, a Hollywood firm that provides scaffolding materials and installation to construction sites, of breaching its contract and taking property that belongs to PERI for its own use. Micon’s principal Michael Connell and attorneys for PERI did not respond to requests for comment.

According to PERI’s complaint, Micon signed a contract in 2014 to lease metal rods called PEP props that are used to connect scaffolding together and metal pallets used to store the rods during the construction of Peloro Miami Beach, an eight-story luxury tower at 6620 Indian Creek Drive. The 114-unit building was developed by Meir Srebernik in conjunction with the family fund of the late Roy E. Disney.

However, the deal soured a year later. The lawsuit alleges that Micon owed PERI, one of the world’s largest manufacturers of scaffolding materials, $400,000 in rental fees in August 2015 and attempted to purchase 3,765 PEP props and 90 pallets in its possession. However, PERI’s company policy prohibited converting the rental agreement into a purchase contract until Micon settled its delinquent lease payments, the lawsuit states.

Instead of paying the outstanding rental invoices, Micon ignored further attempts by PERI to collect and refused to return the scaffolding materials, valued at $665,564, according to the lawsuit.

“Notably, the missing equipment is the same equipment that Defendant requested to convert to a purchase,” the lawsuit states. “Because defendant was in default of its obligations under the contract, PERI refused to convert the rentals.”

As of Sept. 30, Micon owes PERI the $665,564 plus $71,936 in accrued interest, the lawsuit alleges.