A dispute between a Palm Beach condominium association and one of its residents has ended in a settlement that requires the association to hire a forensic accountant. The Halcyon of Palm Beach Condominium Association reached the agreement with Dr. Michael Montanaro, an orthodontist and longtime resident, after nearly a year of litigation over financial transparency and an air conditioning project.
Montanaro filed his lawsuit last October, alleging that the condo board failed to give owners the right to vote on a $2.5 million air conditioning upgrade. He also raised concerns about two special assessments totaling $15 million—one for $6 million and another for $9 million in 2021—that were not fully accounted for.
Earlier this month, Palm Beach Circuit Court Judge Maxine Cheesman approved appointing a receiver for the building’s finances. As part of the settlement, however, the parties agreed instead to have an independent forensic auditor review how the assessment funds were 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 indicate that previous investigations found problems with record-keeping by the Halcyon association. “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,” said David Glickman, another attorney representing Montanaro.
“There wasn’t necessarily evidence of nefarious activity,” he added, but it “raises a lot of questions,” given the amount involved.
A spokesperson for Halcyon said they expect to hire an auditor in early September.
The Halcyon complex consists of 104 units across two buildings at 3440 South Ocean Boulevard on Palm Beach’s South End. Built in 1980, it is among many older condos now facing compliance with Florida’s updated safety laws following recent statewide changes.
As part of resolving this case, Halcyon’s board also agreed to pay Montanaro’s legal fees—totaling $250,000—and excuse him from future special assessments tied either to those fees or any related legal expenses from this dispute. The settlement further stipulates that owners must be allowed to vote on moving forward with any air conditioning project—a process previously handled solely by board decision.
“My client is very glad,” Pincus said. “I think ecstatic is a proper word.”
