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 claims that the association had moved forward with a $2.5 million air conditioning project without allowing unit owners to vote, as well as concerns over $15 million in special assessment funds that could not be fully accounted for.
Dr. Montanaro, an orthodontist who has owned his unit since 1980, filed suit in October seeking court intervention to oversee the association’s finances. Court records show that earlier this month, Judge Maxine Cheesman approved appointing a receiver to take control of the association. However, as part of the settlement, both sides agreed instead to hire a forensic auditor to review how the $15 million was 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.”
The disputed funds came from two special assessments levied by the association in 2021—one for $6 million and another for $9 million. According to court documents and prior investigations cited in filings, the accounting records were described as being in disarray.
“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 “raises a lot of questions,” due to the size of the sum involved.
A spokesperson for Halcyon said they expect to hire an auditor by early September.
The Halcyon condominium consists of two oceanfront buildings at 3440 South Ocean Boulevard with 104 units total. Built in 1980, it is among many older condo properties on Palm Beach Island now working through new state safety regulations following recent legislative changes impacting similar developments across Florida.
As part of settling with Montanaro, Halcyon also agreed to pay his $250,000 legal fees and exempt him from related special assessments or legal costs tied directly to this case. The agreement further requires holding an owner vote on any future air conditioning project—a process previously bypassed by board approval alone.
“My client is very glad,” Pincus said. “I think ecstatic is a proper word.”
