Developer Wins $ 3.78 Million Verdict Against Orange Beach
(OBA®) – Orange Beach resident and developer Ian Boles has won a $ 3.78 million judgment against the City of Orange Beach for loss of rental income and future developments of Boles caused by this that the lawsuit says to be arbitrary rules worked out by the construction department and asked only of him.
“They wanted me to disclose what I call personal information and not keep it to myself and contractors,” Boles said. “They wanted me to say how much I paid. I balked because I didn’t want to make fun of the workers because I would never have them again, you know. There is no way that they are entitled to get the amounts. Not at all.”
A jury agreed and awarded Boles $ 792,247 for lost rental income, $ 343,917 for lost possession costs, $ 2.4 million in future profits lost in possible duplex construction and $ 267,881 in consolidation loan fees. Boles sued the city and building manager Lannie Smith individually. Smith settled out of court, Boles said, and left his post as building manager before the May 21 verdict, Boles said.
The city did not respond to requests for comment on the trial and judgment, but Mayor Tony Kennon told the Lagniappe the city would appeal the verdict of the trial to the Baldwin County Circuit Court.
According to the lawsuit, the conflict first arose “when Boles, through its electrical contractor Hellmich Electrical, requested an inspection from The City and / or Smith. The requested inspection was to inspect the completed electrical work and certify that Baldwin EMC would be able to supply electricity to the project. At the time of this request, the inspection did not take place as requested. As a result, the project never received power and was continually threatened by elements common to Baldwin County, Alabama. “
The inspection was requested on June 1, 2016, but was not completed until April 2018, when the city issued a certificate of occupancy for the new building. Boles has several rental properties at 23344 Perdido Beach Boulevard. Three of them are eight-bedroom duplexes on each side located just west of the Phoenix West 2 condo tower. One of them was the subject of the lawsuit.
The lawsuit went on to state that “the city and / or Smith have said they will not inspect the property unless this information is provided in full compliance, to include each name, address, phone number and amount paid. for this particular project. ” Further, the lawsuit charged: “They have no legal basis for requesting such information, and the refusal to inspect the premises on the grounds that they are not provided further demonstrates a misuse of power exercised over the citizens. Orange Beach and Baldwin County. “
When the inspection finally took place, the lawsuit said that “the city found minor infractions, home inspectors cited several minor issues, requesting repair of items which under normal circumstances would not be necessary. (namely: location of the air conditioner, electrical outlets, etc.).
Electrical contractor Gary Hellmich of Hellmich Electric told Smith “it doesn’t hurt Boles because Boles doesn’t have to pay for the repair work to be completed, it actually cost money. ‘money to Hellmich Electric “. Smith said, “You should think about who you’re working with next time,” in response, implying that Hellmich Electric shouldn’t be working for Boles in the future, or charging more money if you’re going to. work for Boles, ”the lawsuit said.
This interaction led Boles and his lawyers to accuse the city of interfering in the business affairs of Boles and its contractors. According to the lawsuit, Smith “by ordering his inspectors to subject Boles to more thorough inspections, to demand more information than can be obtained legally and to inject themselves into the relationships of Boles and its contractors. current, future subcontractors, government entities, business relationships, future developments, and potential future business partners.