The developer and the builder of Lake Park's Nautilus 220condominiums have filed lawsuits against each other, one alleging a breach of contract and failure to complete work, the other alleging a failure to pay more than $11 million in owed money.
Court records show Forest Development filed a lawsuit against Kast Construction on July 13, alleging that Kast did not complete substantial work on the condominiums overlooking the Intracoastal Waterway and that errors by its subcontractors caused unnecessary delays in construction.
Kast responded with a countersuit two days later, naming Forest as a defendant, along with three bank lenders and unnamed condo owners identified as John Does 1-220.
It alleges that Forest failed to make monthly progress payments
totaling $11.4 million dating to December, and said the developer submitted change orders that it instructed Kast to perform, then refused to pay for.
"Despite Forest Development’s repeated attempts to evade its obligation to pay KAST for work performed, Forest Development has failed to identify any justification or right to withhold payment as required under the Agreement." the Kast complaint said.
Messages for attorneys representing both parties were not immediately returned. Forest's case is before Circuit Judge G. Joseph Curley. Kast's case is before Circuit Judge Reid Scott.
Nautilus 220 condo towers rise 24 stories over Lake Park's waterfront
Located on Lake Park's waterfront, Nautilus 220 is a 1.15 million square-foot, twin 24-story complex and, according to Forest, the largest of its type in Palm Beach County, housing residential and retail, office and restaurant space.
The developer held a ribbon-cutting ceremony in March, announcing that about 90% of the 330 condos had already been sold. The residences range in price from $1.4 million to $4.6 million. They have 10-foot ceilings, floor-to-ceiling hurricane-impact windows and sliding glass doors and porcelain-tile flooring. The buildings also have 24-hour security and concierge service.
It is one of multiple projects that Forest Development recently has become involved in Lake Park and neighboring Riviera Beach. In May, the company won a bid to renovate Riviera's marina district, including plans to build a convention center.
But as sales have begun at Nautilus, Forest and Kast Construction have become embroiled in a legal dispute.
In its lawsuit, Forest said Kast failed to supervise its subcontractors properly, alleging some condos sustained water damage to due to misuse of plumbing fixtures. It also alleges damage to a lift station resulted in a seven-month delay.
"Kast's errors and omissions, the errors and omissions of its subcontractors, and Kast's failure to properly supervise its subcontractors led to both incurring additional expenses on the Project and delays," attorneys for Forest wrote in their civil complaint.
Forest's complaint said it is disputing what Kast says it owes pending a full audit. It alleges Kast failed to complete work and mischaracterized the incomplete work as "punch-list" items needing minor fixes and adjustments. The lawsuit argues that Kast's refusal to release liens on sold properties has obstructed Forest's ability to close sales and deliver a clear title to purchasers.
It states that Forest is entitled to withhold payments until the liens are released.
In their countersuit, lawyers for Kast argued that Forest has not provided a reasonable justification to withhold payments. They disputed a claim by Forest that purportedly showed a punch list of 413 incomplete work orders. A walkthrough of the site identified 17 items at most, the complaint said.
According to the lawsuit, Forest directed several changes during the course of the construction project, which were documented by Kast as "potential change orders." It alleges Forest failed to provide timely and accurate design documents and revisions, causing out-of-sequence work for subcontractors, re-work to correct mid-project changes and scheduling delays.
Julius Whigham II covers northern Palm Beach County and public safety for The Palm Beach Post. You can reach him at jwhigham@pbpost.com and follow him on X, the platform formerly known as Twitter, at @JuliusWhigham. Help support our work: Subscribe today.
This article originally appeared on Palm Beach Post: Developer, builder trade lawsuits in Nautilus 220 condo tower's shadow
