A legal dispute between the Halcyon of Palm Beach Condominium Association and resident Dr. Michael Montanaro has ended in a settlement after nearly a year of litigation. The case centered on allegations that the association failed to allow owners to vote on a $2.5 million air conditioning project and could not account for $15 million raised through special assessments.
Dr. Montanaro, an orthodontist who has owned his unit since 1980, filed suit in October seeking court intervention over the association’s financial management. Earlier this month, Palm Beach Circuit Court Judge Maxine Cheesman approved appointing a receiver to oversee the association’s finances, but under the terms of the settlement, a forensic auditor will be hired instead.
“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.”
The funds in question were collected through two special assessments in 2021 totaling $15 million—one for $6 million and another for $9 million. According to court records from an earlier investigation, there were significant issues with how these funds were tracked.
“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 noted that it “raises a lot of questions,” given the amount involved.
A spokesperson for Halcyon stated that they expect to hire an auditor by early September.
The Halcyon complex consists of 104 units across two oceanfront buildings at 3440 South Ocean Boulevard in Palm Beach’s South End. Built in 1980, it is among several older condominium properties facing new state safety regulations enacted after recent high-profile incidents affecting similar buildings.
As part of its agreement with Montanaro, the association will also pay his $250,000 legal fees and exempt him from future special assessments related both to his own fees and those incurred by the association during this case. The settlement also requires a vote among owners on whether to proceed with the air conditioning project—a decision previously made without their input.
“My client is very glad,” Pincus said. “I think ecstatic is a proper word.”
