Mandarin Oriental Boca Raton Lawsuit, Condo Buyers Seek Millions as $418 Million Foreclosure Fight Escalates

The unfinished Mandarin Oriental Residences in downtown Boca Raton, Florida, now sits at the center of several overlapping court fights. Condo buyers are suing to get back deposits worth hundreds of thousands or even millions of dollars. A lender group has filed a $417.7 million foreclosure lawsuit against the condo developer. Contractors are pursuing unpaid construction claims. The developer has sued its lenders in New York. And a separate affiliate that owns the planned hotel is in Chapter 11 bankruptcy.

The newest buyer lawsuit was filed October 9, 2026. New York physician Sajid Malik seeks the return of a $1.23 million deposit on a $4.1 million unit and sued Via Mizner Owner III LLC (the developer) and First American Title Insurance Company (the escrow agent). He alleges the unit was not delivered on time and the deposit was not refunded after he terminated. [1]

This is not one class action, and Mandarin Oriental International is not the named defendant in the buyer cases. These are separate individual lawsuits and related proceedings. There is no universal settlement or claim form. Allegations in pending cases have not been decided.

Mandarin Oriental Boca Raton Lawsuit: Quick Facts

Detail	Current information
Development	The Residences at Mandarin Oriental, Boca Raton (Tower 105 Residences), part of Via Mizner
Location	105 East Camino Real, Boca Raton, Florida
Condo developer	Via Mizner Owner III LLC, affiliated with Penn-Florida Companies
Latest buyer case	Sajid Malik v. Via Mizner Owner III, LLC and First American Title Insurance Company, No. 502026CA011445XXXAMB (Palm Beach County Circuit Court), filed October 9, 2026
Deposit sought by Malik	$1.23 million, plus interest, fees and other relief
Foreclosure case	Via Mizner Lender 1 LLC v. Via Mizner Owner III, LLC, et al., filed July 17, 2026
Foreclosure amount claimed	About $417.7 million
Construction claim	Strategic Group Builders seeks about $24.1 million
Reported buyer judgment	Douglas and Debra Jacobs, $1.98 million deposit; developer sought rehearing
Reported individual settlement	Nilesh and Liliana Undavia, about $2.1 million
Developer’s New York suit	More than $500 million against lender entities, filed August 13, 2026
Hotel bankruptcy	In re Via Mizner Owner II, LLC, No. 9:25-bk-25197-EPK (Bankr. S.D. Fla.)
Class action certified?	No
Global settlement or claim form?	None identified

Case numbers for the foreclosure vary between reports (Boca Post lists No. 502026CA008027XXXAMB). Confirm the number on the Palm Beach County Clerk’s docket before citing it. [4]

What Is the Mandarin Oriental Residences Project at Via Mizner in Boca Raton?

Via Mizner is a mixed-use development in downtown Boca Raton. It includes an apartment tower that has been built, plus two unfinished 12-story towers: a Mandarin Oriental hotel and a separate condominium tower. The foreclosure targets a 1.49-acre site planned for a 163-room hotel and 85 condominium units. [10]

The condo developer is Via Mizner Owner III LLC. The planned hotel belongs to a different entity, Via Mizner Owner II LLC. That distinction matters: a case against the condo developer does not automatically make the hotel brand, the hotel-owning affiliate or every contractor liable.

Reporting on October 21, 2026, described the project as caught between stalled construction, buyer refund suits, foreclosure and bankruptcy, with the developer saying completion remains possible. No firm delivery date has been verified. [2]

What Is Sajid Malik Alleging Against Via Mizner Owner III and First American Title?

Malik filed a three-count suit in Palm Beach County Circuit Court over Unit 712 at Tower 105 Residences, which he agreed to buy for $4.1 million. He says he paid a $1.23 million deposit and was ready to close. He seeks the deposit, interest, attorney fees and other relief, and asks the court to decide whether First American can or must pursue a surety bond tied to part of the deposit. [1]

Where Did the $1.23 Million Deposit Go?

Amount	What the complaint says happened
$820,000	Released to the developer as construction funds
$410,000	Released after the developer provided an escrow-deposit surety bond from Federal Insurance Company
Total	$1,230,000

The complaint says First American no longer holds any of Malik’s deposit and that the bond names First American and the Florida Department of Business and Professional Regulation as the parties entitled to claim on it, so Malik cannot claim directly. The $410,000 equals 10% of the $4.1 million price. Malik therefore asks the court to declare that First American may or must pursue the bond for his benefit.

This is the key issue for buyers whose deposits were released: a right to a refund from the developer is not the same as money sitting in protected escrow. By contrast, The Real Deal reported in July that buyers should be able to recover the 10% of deposits still held in escrow if the foreclosure moves forward, which depends on each buyer’s escrow arrangement. [10]

Why Does the Malik Complaint Contain Conflicting Delivery Deadlines?

The complaint’s main allegations say the estimated completion date was December 2022 and that the contract required delivery within three years, giving a December 31, 2025 outside date. But attached correspondence from Malik’s lawyer says an addendum required delivery by December 31, 2023, and the reproduced purchase-agreement materials contain another date reference. The court may need to decide which provision controls. Neither deadline is an established finding. [1]

Via Mizner Owner III and First American have not been found liable.

Why Are Other Condo Buyers Suing Via Mizner Owner III?

Buyers who signed purchase agreements in roughly 2018 to 2022 allege their units were not completed within the contractual deadline. Reporting on early cases said the agreements provide that units “shall be” completed and delivered within three years after the estimated completion date. The earliest suits were filed in 2024. [3]

The number of suits has grown. The Real Deal counted 13 buyers who had sued by July 2026, and the New York Post reported around 20 by October 21. Numbers and statuses change, and each case depends on its own contract, addenda, notices and deposit arrangement. [2][10]

What Have Buyers Won or Settled So Far in the Mandarin Oriental Cases?

Douglas and Debra Jacobs: Reported $1.98 Million Ruling

The Jacobses sought the return of a $1.98 million deposit. On June 29, 2026, Palm Beach County Circuit Judge James Sherman ruled in their favor, finding the developer’s arguments erroneous, insufficient or unsupported, according to The Coastal Star. The developer’s attorney, Robert Sweetapple, filed a motion for rehearing on July 9. The reporting reviewed did not show whether that motion was decided or whether the ruling is final. [3]

A ruling reported in the news is significant, but rehearing, appeal and enforcement can change the practical result. It is not binding on other buyers’ cases, which turn on their own contracts.

Nilesh and Liliana Undavia: Reported $2.1 Million Settlement

The Undavias paid a $1.65 million deposit on Unit 706, a $5.5 million condo. Their case settled in June 2026 after an arbitrator found they were entitled to compensation and interest. They are to be paid about $2.1 million by January 7, 2027, or within 30 days after the developer refinances or obtains additional financing, whichever the settlement specifies. If not paid, they can seek a consent judgment. [11]

Eight other buyers have also settled, with terms kept confidential. These results are individual and do not guarantee anything for other buyers. [11]

What Is the $417.7 Million Mandarin Oriental Foreclosure Lawsuit?

On July 17, 2026, Via Mizner Lender 1 LLC, the administrative agent for a lender group, sued in Palm Beach County Circuit Court to foreclose the mortgage on the Tower 105 project. The group has been reported to include Athene Annuity and Life Company and Athora Lux Invest NL-CRE Direct Lending Fund, and The Real Deal describes the lenders as Apollo Global-affiliated. [4][10]

The construction loan was capped at $270 million in August 2023. The lenders now claim about $417.7 million for principal, advances for project expenses, interest, fees and other amounts. The complaint names the developer, 34 construction-lien claimants and 96 contract purchasers. [4]

What Defaults Do the Mandarin Oriental Lenders Allege?

• Missed monthly interest payments beginning June 2024.
• Failure to repay the loan at its September 2025 maturity.
• Failure to complete the project by a February 3, 2025 deadline in the loan documents.
• Failure to deposit additional funds the lenders say were required.
• Failure to clear or bond certain construction liens on time.
• Alleged defaults tied to the project’s marketing license and hotel-related agreements.

These are allegations in the complaint, not findings. [4]

How Does the Foreclosure Affect Condo Buyers and Contractors?

A first mortgage generally gets paid before later-filed liens and most other creditors. The lenders claim priority over contract purchasers and lien claimants. If a sale is ordered, priority rules and sale value will heavily affect who recovers anything. The Real Deal noted that foreclosure puts contractors and buyers in a tough spot because the mortgage lender is paid first. [10]

What Is the Developer’s $500 Million Lawsuit Against the Mandarin Oriental Lenders in New York?

On August 13, 2026, Via Mizner Owner III LLC and Via Mizner Pledgor III LLC sued Via Mizner Lender 1 LLC and Via Mizner Lender 2 LLC in New York state court, seeking more than $500 million. They allege the lenders manufactured or improperly created defaults to justify foreclosure and a separate sale of pledged ownership interests. A New York judge reportedly issued a temporary restraining order blocking a planned Uniform Commercial Code sale of those interests, with a hearing set for October 1. The outcome of that hearing was not confirmed in the sources reviewed. [5]

A UCC sale of pledged equity is legally different from the Palm Beach County mortgage foreclosure. These claims are the developer’s allegations and have not been decided.

Which Contractors Are Suing Over the Tower 105 Mandarin Oriental Project?

Strategic Group Builders: About $24.1 Million

Strategic Group Builders, LLC v. Via Mizner Owner III, LLC, et al., No. 502026CA007564XXXAMB, filed July 6, 2026, seeks about $24.1 million plus interest, costs and fees. It names the owner and four lenders, seeks to enforce a construction lien and alleges the lenders stopped monthly payments without notice. The company says it stopped work before May 6, 2026. [6]

Alpha Insulation & Waterproofing: About $312,035

Alpha Insulation and Waterproofing Inc. v. Via Mizner Owner III LLC, No. 502026CA008418XXXAMB, filed July 27, 2026, seeks to foreclose a $312,034.77 lien for work under a subcontract with Strategic Group Builders. [7]

Earlier suits also exist, including a claim by Areda Construction for $1.8 million for concrete work. [3]

What Is the Status of the Mandarin Oriental Hotel Chapter 11 Bankruptcy Case?

Via Mizner Owner II LLC and Via Mizner Pledgor II LLC filed Chapter 11 on December 23, 2025, after being unable to repay lenders about $210 million at maturity. The case is In re Via Mizner Owner II, LLC, No. 9:25-bk-25197-EPK (Bankr. S.D. Fla.). [8][3]

As of October 22, 2026, the docket remained open. Recent entries included a motion to extend the debtor’s exclusive period to file a plan and a further hearing on debtor-in-possession financing, continued to December 16, 2026. Earlier reports said an auction and sale hearing had been postponed to August 14 and August 21. The entries reviewed did not show a completed sale. [8]

This bankruptcy involves a separate hotel-owning affiliate and does not decide the condo buyers’ claims against Via Mizner Owner III.

Is Mandarin Oriental International Being Sued?

In the Malik case the defendants are Via Mizner Owner III LLC and First American Title Insurance Company. The foreclosure was filed by Via Mizner Lender 1 LLC against the condo developer, lien claimants and purchasers. The New York case names Via Mizner project entities and the lenders.

The foreclosure complaint refers to hotel-related agreements and the marketing license, which could affect the relationship between the project and the hotel brand. That does not make Mandarin Oriental International liable for the unfinished construction or the deposits. Responsibility depends on contracts, entities, guarantees, licensing arrangements and conduct.

Which Florida Laws Apply to the Mandarin Oriental Condo Deposit Disputes?

Florida Statute § 718.202: Condominium Deposits and Escrow

Section 718.202 of the Florida Condominium Act (Chapter 718) governs deposits paid to developers before closing. In general, deposits up to 10% of the price must stay in escrow, while amounts above 10% can be used for construction if the contract provides, once construction has begun. The statute also allows alternative assurances such as a surety bond. Check the statute’s current text and the buyer’s contract. [9]

The Malik complaint says First American released his deposit under arrangements the statute and escrow agreement allow. Whether that is right, and what Malik can recover, has not been decided.

Breach of the Purchase Agreement

Buyers argue the developer failed to deliver by the contractual deadline and then refused to refund deposits after termination. The developer’s defenses can include disputes over the completion date, extensions, notice and whether the buyer terminated properly. In Florida, an action on a written contract generally must be filed within five years (Fla. Stat. § 95.11(2)(b)). The exact wording of each agreement and addendum controls.

Attorney Fees and Interest

Purchase agreements often award fees to the prevailing party. Florida makes one-sided fee provisions reciprocal (Fla. Stat. § 57.105(7)). Buyers’ complaints also ask for interest on the deposit.

Rehearing of a Ruling

A party can ask a Florida trial court to reconsider a ruling by a motion for rehearing under Florida Rule of Civil Procedure 1.530. The developer used this after the Jacobs ruling. Filing it does not mean the ruling is wrong or that it will be changed.

Federal Land Sales Disclosure Law

Some Florida pre-construction buyers also plead the federal Interstate Land Sales Full Disclosure Act (15 U.S.C. § 1701 et seq.), which has several exemptions. None of the complaints reviewed here were confirmed to rely on it.

Mortgage Foreclosure, Construction Liens and Priority

Florida construction liens are governed by Chapter 713, and mortgage foreclosure sales by Chapter 45 and Chapter 702. Lien priority generally depends on recording dates and notices of commencement. A buyer with a refund claim does not automatically outrank a recorded mortgage. A foreclosure judgment, a court-ordered sale, and any surplus after the senior mortgage is paid will determine who is paid.

Chapter 11 Bankruptcy

Filing Chapter 11 triggers an automatic stay (11 U.S.C. § 362). A debtor usually has an initial 120 days to file a plan (11 U.S.C. § 1121), which courts can extend, and may seek court-approved financing (11 U.S.C. § 364) or approval of a sale (11 U.S.C. § 363). The stay protects the debtor entities, not affiliates like Via Mizner Owner III, unless a court extends it.

Pledged-Equity (UCC Article 9) Sales

A UCC sale of pledged ownership interests must be conducted in a commercially reasonable manner under UCC Article 9 (see UCC § 9-610 as adopted in New York). The developer’s New York suit challenges the lenders’ planned sale. That claim is unresolved.

Taxes on Refunds and Settlements

A refund of your own deposit is generally a return of your money. Interest you receive is generally taxable income, and settlement terms can affect treatment. Consult a tax professional.

What Can Affected Mandarin Oriental Condo Buyers Do Now?

1. Review your purchase agreement and every addendum. Find the estimated completion date, outside delivery deadline, extension clauses, notice procedure and refund language.
2. Preserve deposit records. Keep wire confirmations, escrow statements, bond documents, termination notices and all correspondence with the developer and title company.
3. Find out where your deposit is. Ask whether any portion remains in escrow, was released to the developer, or is backed by a bond.
4. Get Florida condominium counsel before terminating. Whether the deadline truly passed, whether notice or a cure period is required, and whether you are named in the foreclosure all matter. Buyers named in the foreclosure should respond by the deadline in the summons.
5. Check your own docket. A filing, ruling or settlement may not appear in news coverage.
6. Avoid unofficial “claims services.” No project-wide settlement administrator or compensation program was identified.

For context on other real estate disputes, see NAR Homebuyer Commission Settlement, Check If You Qualify, Tuccori et al. v. At World Properties, LLC et al., No. 1:24-cv-00150, which concerns brokerage commissions and offers no refund for this development.

A separate case on alleged mortgage-referral arrangements is Zillow RESPA Lawsuit, Were You Affected? — Taylor v. Zillow, No. 2:25-cv-01818, which raises different issues.

For a Florida consumer-enforcement example involving a different kind of contract, see MV Realty Lawsuit, Multiple States Win Big as Courts Order $18M+ in Penalties and Liens Removed From 13,000+ Homes 2026.

Mandarin Oriental Boca Raton Lawsuit Timeline

Date	Development
2015	Via Mizner development with Mandarin Oriental brand announced
2021–2022	Many buyers sign purchase agreements and pay large deposits
August 2023	Condo construction loan refinanced with a $270 million cap
June 2024	Lender later alleges missed interest payments begin
2024	First buyer deposit suits filed against Via Mizner Owner III
September 2025	Condo loan matures, according to the foreclosure allegations
December 23, 2025	Hotel-owning affiliate files Chapter 11
June 2026	Undavia settlement; June 29 Jacobs ruling
July 6, 2026	Strategic Group Builders files about $24.1 million claim
July 9, 2026	Developer moves for rehearing in the Jacobs case
July 17, 2026	Lender files $417.7 million foreclosure
July 27, 2026	Alpha Insulation files lien suit
August 13, 2026	Developer sues lenders in New York for more than $500 million
October 9, 2026	Malik sues over $1.23 million deposit
October 21, 2026	Reporting counts about 20 buyer suits
October 22, 2026	No global buyer settlement or claim process identified

Frequently Asked Questions About the Mandarin Oriental Boca Raton Lawsuits

Is there a Mandarin Oriental Boca Raton lawsuit?

Yes. Several: buyer deposit suits, a $417.7 million foreclosure, construction-lien suits, the developer’s suit against lenders and a hotel-affiliate Chapter 11 case.

Who is being sued over the condo deposits?

Mainly Via Mizner Owner III LLC, the condo developer. Some cases also name First American Title Insurance Company.

Is Mandarin Oriental International a defendant?

Not in the Malik case. Check each complaint before assuming the hotel brand is a defendant.

How much is Sajid Malik seeking?

The $1.23 million deposit plus interest, fees and other relief. No judgment for him was identified as of October 22, 2026.

Has any buyer won money back?

Some have. The Jacobses obtained a reported $1.98 million ruling (rehearing sought), and the Undavias settled for about $2.1 million. Eight others settled confidentially. Results do not guarantee others’ outcomes.

Is there a class-action settlement for all buyers?

No class or claim form was identified.

What is the $417.7 million foreclosure lawsuit?

A lender-group action filed July 17, 2026, to foreclose the Tower 105 mortgage, claiming about $417.7 million.

Why is the developer suing its lenders?

It alleges the lenders manufactured defaults and seeks more than $500 million in New York. The claims are unresolved.

Does the hotel bankruptcy cancel the condos?

Not automatically. It involves a separate affiliate. The future of both parts remains uncertain.

What should I do if I paid a deposit?

Review your contract, preserve records, find out where your deposit is held and talk to a Florida condominium attorney before acting.

Sources and Court Records

1. Palm Beach County Circuit Court, Sajid Malik, M.D. v. Via Mizner Owner III, LLC and First American Title Insurance Company, complaint filed October 9, 2026, No. 502026CA011445XXXAMB.
2. New York Post, Buyers seek 7-figure refunds for condos inside a $1B Florida development plagued by delays, litigation and foreclosure, October 21, 2026.
3. The Coastal Star, Boca Raton legal battles rise over unfinished Mandarin Oriental, 2026.
4. Boca Post, Tower 105 condo project faces foreclosure suit over $270 million construction loan, July 25, 2026.
5. The American Developer, Penn-Florida countersues Madison Realty over Boca Tower, August 2026.
6. Boca Post, Via Mizner III condo project faces $24 million construction-lien lawsuit, July 2026.
7. Boca Post, Via Mizner Owner III faces $312,000 lien lawsuit over Tower 105 work, August 1, 2026.
8. U.S. Bankruptcy Court, Southern District of Florida, In re Via Mizner Owner II, LLC, No. 9:25-bk-25197-EPK; docket entries summarized by BKAlerts.
9. Florida Legislature, Florida Statutes § 718.202, Sales or reservations prior to closing.
10. The Real Deal, Long-delayed Mandarin Oriental condo in Boca Raton faces $418M foreclosure, July 23, 2026.
11. The Coastal Star, Boca Raton couple get $2 million in Mandarin Oriental suit, 2026.

Statutes and rules cited: Fla. Stat. ch. 718 (§ 718.202), ch. 713, ch. 702, ch. 45, §§ 57.105(7), 95.11(2)(b); Fla. R. Civ. P. 1.530; 11 U.S.C. §§ 362, 363, 364, 1121; 15 U.S.C. § 1701 et seq.; UCC Article 9 (§ 9-610).

Disclaimer: This article is general information, not legal advice. Complaints contain allegations, not findings. Buyer rights depend on the contract, addenda, escrow and bond documents, applicable law and current court orders. Check the relevant docket before making a legal or financial decision.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the Malik complaint, Palm Beach County and Bankruptcy Court records as summarized in the cited reporting (Boca Post, The Coastal Star, The Real Deal, New York Post), Florida Statutes § 718.202 and the other cited statutes, as of October 22, 2026. Last Updated: October 22, 2026.