FORT LAUDERDALE, Fla. — A state court has ruled in favor of two shareholders in a dispute against a Panamanian company, Costa Six S.A., and four of its shareholders, culminating in a $4.5 million judgment. The ruling, issued this week by Broward Circuit Judge Michael Robinson, resolves a contentious monetary conflict surrounding the Adagio Fort Lauderdale Beach project, a condominium located on the Intracoastal Waterway.
The plaintiffs, brothers Leonardo and Luis Collo, who each own a 12.5% stake in the company, initiated the lawsuit to secure their financial interests, alleging that their rights as shareholders were being undermined by detrimental acts from fellow shareholders. Notably, the legal action accused one of the shareholders, Arturo Ortega, of mismanaging the project and diverting funds.
Ortega, defending his position, argued that his lack of involvement in the project management should absolve him from sharing its near $2.7 million loss. He also accused Leonardo Collo of financial mismanagement, claims that were later instrumental in the divisive atmosphere among the stakeholders.
Throughout the trial, the defendants vehemently denied allegations of theft and mismanagement. The case, as outlined by Ira Loren Libanoff, who represented the defendants, revolved principally around the distribution of remaining funds from the development entity. He emphasized that the core of the disagreement was about the financial settlement among the shareholders.
After an intense six-day jury trial, which saw the participants exchanging numerous legal accusations including civil theft and breach of fiduciary duty, the jury deliberated for only 35 minutes before siding with the Collo brothers. The swift verdict highlights the jury’s agreement with the plaintiffs’ perspective on the dispute.
“The sheer volume of counterclaims and the aggressive strategies employed by the defendants turned this trial particularly ugly,” said Glen Waldman, a partner at Armstrong Teasdale, who represented the Collos. He described the legal victory as a complete vindication of his clients’ claims and rights.
Further emphasizing the plaintiff’s strategic approach, Waldman revealed that their success hinged on meticulous financial investigations done by independently hired accountants, which ultimately demonstrated the absence of alleged financial irregularities.
In delivering the final judgment, Judge Robinson awarded the plaintiffs $3.75 million in damages and over $720,000 in prejudgment interest, bringing the total award to more than $4.47 million. Moreover, the court provided a directed verdict in favor of the Collo brothers on several counts, including conversion, civil theft, and aiding in breaching fiduciary duties.
Reflecting on the trial, Waldman highlighted the meticulous nature of their legal strategy, emphasizing how thorough analysis and expert testimonies laid the groundwork for their success. “This trial also serves as a reminder that sound legal and ethical practices in business dealings are indispensable, and sometimes, a strong courtroom presence can make a substantial difference,” he noted.
Adding a lighter note to the case’s conclusion, a juror commended the engaging manner of the proceedings, underscoring the importance of effective communication in court. This aspect of the trial sparked a dialogue about the unexpected ingredients—like a lively presentation—that contribute to a successful legal strategy.
The verdict not only resolves the financial controversy but also reinstates the Collo brothers’ confidence in judicial processes to equitable adjudicate commercial disputes.