A dispute at the Halcyon of Palm Beach Condominium Association has ended in a settlement after nearly a year of litigation. The case, brought by resident Dr. Michael Montanaro, centered on an air conditioning project and concerns over $15 million collected from special assessments.
Dr. Montanaro, an orthodontist and long-time resident, filed his lawsuit last October. He claimed that the association had approved a $2.5 million air conditioning project without allowing owners to vote, as required by governing documents. His complaint also alleged that the association failed to properly account for funds raised through two special assessments in 2021—one for $6 million and another for $9 million.
Earlier this month, Palm Beach Circuit Court Judge Maxine Cheesman approved appointing a receiver to oversee the association’s finances. However, as part of the settlement agreement, the association will instead hire a forensic auditor to review how the money was spent.
“Having a receiver would be much worse for them than having an accountant, as a receiver is in control of the association,” said Bill Pincus, attorney for Montanaro. “Instead, the association will have a forensic accountant, agreeable to us, look through these books and figure out what happened with this money.”
Court records described previous attempts at accounting as being in “shambles.” David Glickman, another attorney representing Montanaro, explained: “The main issue was that the association was simply unable to account for all of the $15 million it spent. Its effort to show what happened to all of that money was insufficient.”
“There wasn’t necessarily evidence of nefarious activity,” Glickman added, but he noted that it “raises a lot of questions,” given the sums involved.
A spokesperson for the condo association stated plans are in place to hire an auditor by early September.
Halcyon is located at 3440 South Ocean Boulevard on Palm Beach’s South End and consists of 104 units across two oceanfront buildings built in 1980—the same year Montanaro purchased his unit for $87,000 according to property records. The building is among many older condos on Palm Beach Island facing challenges under Florida’s updated condo safety laws.
Other terms of the settlement require a formal vote among owners regarding future approval of major projects like the contested air conditioning upgrade—a process previously bypassed by board decision alone. The association also agreed to pay Montanaro’s legal fees totaling $250,000; he will not be responsible for any special assessments related to those or other case-related legal costs.
“My client is very glad,” Pincus said. “I think ecstatic is a proper word.”
