UPDATE: In a startling turn of events, T&K Property Management has just filed a motion to reduce the $893,784.29 in damages awarded by a jury for fraud and breach of contract against several condo buyers. This development follows a jury’s verdict on September 16, 2023, which found the company and its managing agent, Tom Smith, liable for failing to deliver the promised condo units in Fargo.
The civil case, initiated by buyers of the Great Northern Block condos in November 2023, alleges the company misrepresented essential features of the properties, used substandard materials, and delayed unit availability without justification. Buyers had collectively paid around $1 million for condos that were not completed on schedule.
Among the plaintiffs are the Erceg family from Georgia, who were promised a timely closing for their unit in August 2023, and KLD Enterprises, represented by Rob Lauf, who faced significant financial losses due to the delays. Lauf’s situation became dire as he was forced to rent an apartment for over a year while incurring tens of thousands in tax liabilities after his planned purchase fell through.
The legal battle has been intense, with allegations that T&K failed to pay subcontractors and even attempted to re-list units that had already been promised to buyers. In one striking instance, the Graybill family saw their agreed purchase price of $599,000 increase by $70,000 with no itemized explanation after months of collaboration on design choices.
After a weeklong trial, the jury’s special verdict awarded KLD Enterprises over $450,000, the Ercegs nearly $250,000, and the Graybills about $30,000. Yet, T&K’s recent motion argues that the damages are “unreasonable” and cites issues around the Ercegs’ payments being linked to design choices, which they claim limits enforceability.
The plaintiffs have responded aggressively, maintaining that T&K’s claims lack legal basis and asserting that the damages awarded were both reasonable and anticipated. The case has seen multiple delays and complications, including a judge’s recusal and T&K’s counterclaims, which were ultimately dismissed.
As of now, the Great Northern Block’s website lists several units as still available, raising questions about the company’s future in Fargo’s real estate market. The urgency surrounding the court’s response to T&K’s damages reduction request is palpable, leaving buyers and potential investors anxious for clarity.
Authorities are expected to rule on T&K’s motion soon, which could significantly alter the financial landscape for both the company and the affected buyers. With the stakes so high, this story is far from over, and further developments are anticipated in the coming weeks. Stay tuned for updates as this urgent case unfolds.
