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Council hears update on Palm Beach Polo litigation; hearing rescheduled to April 1 and $9.3 million escrow remains held
Summary
Village attorney reported the judge canceled a scheduled hearing on Palm Beach Polo's motion to stay release of escrowed funds; the motion is now set for April 1. Staff said the amount held is about $9.3 million and noted interest is accruing at a judgment rate of 9.3%; if the bond becomes insufficient the village may seek an increase.
Wellington's legal team updated the council on ongoing litigation with Palm Beach Polo, including a motion to stay the release of escrow funds and related efforts to compel an escrow agent to disburse held funds.
"We had scheduled a hearing on the motion, Palm Beach Polo's motion to stay the release of the funds being held ... and that was scheduled for tomorrow. Unfortunately, the judge, canceled the hearing," the village attorney said, adding the motion is now scheduled for April 1.
Staff said two related motions had been set — Palm Beach Polo's motion to stay and the village's motion for an order to show cause why the escrow agent should not be held in contempt — but scheduling conflicts required splitting hearings. The attorney said the amount currently held in escrow is "9 point some odd million dollars" and later referenced a judgment rate of 9.3%.
The attorney said if the court denies Palm Beach Polo's motion to stay the escrow agent will have to release the funds; if the court grants the stay it could alter the village's enforcement strategy. Staff said the judge has limited hearing availability and that the village will request available dates as needed; staff also said they would seek an increase in the bond if the amount held becomes insufficient to cover exposures.
Council members asked about the potential for additional delays, and the lawyer said the judge could again postpone but noted that cancellations of that nature are infrequent. The update did not include a final ruling; staff said the next scheduled hearing date is April 1.
