MIAMI – The attorney representing six companies that own nine apartment buildings the city of Miami described as in "severe disrepair" is working to convince a judge to invalidate a recently granted order of final judgment.
Keith Silverstein is representing the defendants. In his recently filed motion to vacate default final judgment, he argues that the property manager ignored the suit at the direction of a state inspector and claims the city is "stonewalling" repair efforts.
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State records show the corporations are owned by Denise Vaknin of New Jersey. According to city officials, her husband, Abraham Vaknin, oversees the properties and collects rent.
For years, the city stated that the companies that own the properties located in Liberty City and Overtown have ignored violations and repairs, and racked up more than $2.4 million in fines. The city of Miami filed suit against the property owners last October.
Residents showed Local 10 News the deplorable conditions of their units. Problems have included sewage leaks, live vermin, ceiling cave-ins, electrical issues and plumbing problems.
"We are living like we are not human beings, like we are dogs," said resident Gaynisha Williams, who claims her teenage son was hurt when the ceiling fell down on him in January 2014.
Williams said previous requests to repair a water leak went unanswered.
"Before he went to bed, there was a big old bubble," Williams told Local 10 News investigative reporter Christina Vazquez. "Then when he went asleep, the whole thing fell on top of him. It dislocated his neck. He could have died."
When the corporations didn't respond to the suit, a motion of default was entered in February. Last month, a Miami-Dade County judge granted the city's motion for final judgment.
In the motion to vacate default final judgment, Silverstein states that the companies' registered agent Leonard Flowers, who "was the Registered Agent for all six (6) defendants at the time of service of the summons and complaint," as well as the "Property manager for all nine of the affected properties," ignored the city of Miami's complaint at the direction of a DBPR Inspector.
"On Sept. 29, 2014, prior to the filing of the complaint, Mr. Flowers met with Inspector Herbert Mcarthur from the state of Florida Department of Business and Professional Regulation, Division of Hotels and Restaurants. At that time, Inspector Mcarthur performed an inspection of the affected properties and issued several 'Lodging Inspection Reports.' Later, prior to the entry of the Default on Feb. 23, 2015, Inspector Mcarthur again inspected the affected properties and issued a second series of 'Lodging Inspection Reports' that was received by Mr. Flowers. During this Jan. 15, 2015 inspection, by Inspector Mcarthur, Mr. Flowers was specifically advised 'not to worry about the complaint, and to deal with the Lodging Inspection Reports.'"
"As a result of the unequivocal direction give to him by Inspector Mcarhtur, Mr. Flowers made no effort to address the complaint; rather, as directed, he set about addressing the violations set forth in the Lodging Inspection Reports under the distinct and reasonable impression that the City of Miami and Inspector Mcarthur were working together in a coordinated effort to compel defendants to address the violations. Mr. Flowers understood that if the violations in the Lodging Inspection Report were addressed, the Complaint would be resolved. Solely as a consequence of the mis-direction given to Mr. Flowers by Inspector Mcarthur, the summons and complaint were ignored and defendants' focused their efforts upon remediating the violations identified in the Lodging Inspection Reports."
"It is clear from the facts surrounding this case that Defendants' default resulted from a failure by Inspector Mcarthur to effectively communicate to Mr. Flowers that the Lodging Inspection Reports were independent from defendants' obligation to respond to the complaint and that, notwithstanding Mr. Flowers' attention to the Lodging Inspection Reports, defendants' failure to address the complaint would result in consequences independent form the violations identified in these reports."
Silverstein also argues that GloGoz Construction had been hired to address the violations but that they have been "severely hamstrung in its effort to work with city officials to repair the affected properties and comply with the city requirements."
The motion goes on to claim that it "becomes patently clear that the city had no intention of allowing defendants to succeed in its efforts to remediate the violations."
READ: Motion to Vacate Judgement Part 1
Motion to Vacate Judgement Part 2
Motion to Vacate Judgement Part 3
Silverstein has submitted receipts from Home Depot, which in his estimation, "demonstrate that materials have been purchased for repairs and improvements."
In his affidavit, Leonard Flowers states, "It was my understanding that the city of Miami and Inspector Mcarthur were working together in a coordinated effort to compel compliance with the violations and that my efforts to address the Lodging Inspection Reports and conversations with Inspector Mcarthur was a response to the complaint. Based upon my conversation with Inspector Mcarthur, I understood that if the violations in the Lodging Inspection Report were addressed, the complaint would be resolved. Soley as a consequence of the instructions given to me by Inspector Mcarthur, I did not address the summons and complaint, and instead focused my efforts upon remediating the violations identified in the Lodging Inspection Reports."
Vazquez has requested comment from Silverstein, the City Attorney's Office, Mayor Tomas Regalado, Commissioner Keon Hardemon and the Department of Business and Professional Regulation.
"Their allegations that a state inspector told them to ignore the city is totally incorrect and will be proven as such in court," said city attorney Victoria Mendez. "The city seeks compliance. Their contractor's so-called efforts have been too slow or slight to achieve any appreciable advancement toward true compliance."
In June, a Miami-Dade County judge also granted the city's request for receivership and appointed Linda Leali, "as receiver for the properties as they are in serious disrepair and threaten the health, safety and welfare of the community."
Leali has filed a motion to authorize "entry into premium finance agreement." She is looking to get insurance for the buildings.
"The owners have indicated that the receivership properties are not insured. As a result, the receiver has sought and obtained insurance quotes for the properties for both property and liability coverage," the motions states.
Leali is seeking court authority to borrow money to secure coverage. A hearing on that matter has been set for 9 a.m. Tuesday in front of Judge Barbara Areces. A hearing on the defendants' motion to vacate the default judgement is set for 11:30 a.m. Oct 1.
"Now that the court has scheduled a special set hearing on the defendant's Motion to Vacate the Default Judgment, this judgment is in a little bit of a limbo since the judge could vacate the Default Judgment after the hearing in October," said former state and federal prosecutor David Weinstein.
The defendants' attorney, Keith Silverstein, released the following statement to Local 10 News: "Defendants feel confident that when all of the facts are brought before the court, the default will be vacated and defendants will then have the opportunity to demonstrate to the court that defendants had been working diligently and in good faith to bring the properties into compliance."
"The affirmative defenses are all tied into allegations that the city misled the property manager, or actively prevented the defendants from obtaining the permits that would have allowed them to repair the premises. If the facts and evidence supporting the affirmative defenses are true, the city may lose their claim for injunctive relief and potentially some of their claims for a money judgment based on the past fines and liens," said Weinstein. "The bottom line is that while the case remains active in court and the judgment in favor of the city might be vacated, if what results from this continued litigation is that the various properties are repaired and the living conditions for the tenants are restored to humane and acceptable conditions, the tenants will have won their battle with the landlord."
Local 10 News reached out to the Department of Business and Professional Regulation in light of one of its inspectors being named in the defendants' Motion to Vacate Default Final Judgment.
In a statement, Chelsea Eagle, deputy director of communications, said, "It would be inappropriate to provide comment regarding any of the allegation(s) listed as the Department of Business and Professional Regulation is not a party in the case mentioned."
Meanwhile, Denise Vaknin, and three of the companies she owns, are facing a separate suit related to the conditions of 6040 NW 12th Ave, filed by Legal Services of Greater Miami, Inc on behalf of tenants and former tenants: Gaynisha Williams, Shannon Daniels and Lakeisha Chatfield.
"The separate action filed on behalf of some of the tenants by Legal Aid remains very much alive and could still result in significant monetary awards for the plaintiffs named in that lawsuit," said Weinstein.
READ: "Left to Rot" Call Christina investigation:
PART 1: Miami residents living 'like we are dogs' say landlord doing nothing to help
PART 2: Landlords of Miami residents living in 'slums' deny owning properties
PART 3: Law seems to protect landlords of Miami residents living in 'slum conditions'
PART 4: Tenants of dilapidated apartment file lawsuit against 'slumlord millionaire'
PART 5: Officials: Apartments in deplorable conditions a "city-wide" problem
PART 6: City officials move closer to improving Liberty City tenants quality of life
Follow Christina Vazquez on Twitter @CallChristinaTV
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