In a legal battle that could have significant implications for real estate transactions, two plaintiffs have filed a lawsuit against a prominent real estate company and its agent, alleging breach of statutory duties and professional malpractice. The complaint was filed by Sam Blake and Ted Smith in the Circuit Court of the 15th Judicial Circuit in Palm Beach County, Florida, on February 12, 2025, targeting Corcoran Group, LLC, and Marla Fountain.
The case revolves around a real estate transaction gone awry. According to the complaint, on October 16, 2020, Marla Fountain represented sellers Anthony and Mary Attala in a contract with buyer Benedict Strafuss for the sale of Lot 1 Flagler Promenade S in West Palm Beach. The contract included a clause granting Strafuss the right of first refusal to purchase an adjacent property (Lot 2) if it were to be sold within 12 months. This right was not recorded officially but was known to Fountain.
Fast forward to early 2021; Fountain represented Blake and Smith as their real estate agent when they sought to purchase Lot 2 from the Attalas. On May 18, 2021, Blake and Smith entered into a contract to buy Lot 2 for $2.2 million without knowledge of Strafuss's unrecorded right of first refusal—a critical oversight attributed to Fountain's failure to disclose this material fact.
The plaintiffs assert that Fountain continuously assured them there were no obstacles or encumbrances that would hinder their acquisition of marketable title to Lot 2. However, due to the undisclosed right of first refusal held by Strafuss, the transaction failed to close as scheduled on July 19, 2021. The escrow agent deemed this right a defect in title—information known but not communicated by Fountain.
Blake and Smith accuse Fountain of breaching her statutory duties under Florida Statutes §475.278 by failing to deal honestly and fairly with them and neglecting her duty of full disclosure regarding material facts affecting property value. They also claim professional malpractice due to her negligence in representing them during the transaction.
Furthermore, Corcoran Group is implicated through vicarious liability for Fountain's actions since she acted within her employment scope with Corcoran during these events. The plaintiffs seek damages exceeding $50,000 exclusive of attorneys' fees and costs, alongside interest accrued thereon.
Representing Blake and Smith are attorneys Beth-Ann E. Krimsky and Lawren A. Zann from Greenspoon Marder LLP based in Fort Lauderdale. The Case ID is: 502025CA001278XXXAMB Div: AO.