Florida millionaires at a beach and golf paradise, Grand Harbor, are currently engaged in a legal battle with billionaire Carl Icahn, who owned the property for over 15 years before handing it over to the members in December 2020. The members claim that Icahn’s companies failed to fund necessary repairs and maintenance during his ownership, leading to lawsuits and counterclaims between the two parties. The disputes, which include allegations of financial mismanagement, are set to go to jury trials next year.
Icahn, who has seen a significant decrease in his net worth in recent years, has taken a more hands-on approach in his legal skirmish with Grand Harbor members. His holding company, Icahn Enterprises, is suing the club for over $30 million in assets, while a subsidiary is suing nine individual members for tortious interference. The club and members deny the claims and are preparing to defend their positions in court. The dispute has escalated following legal actions initiated by both sides in 2021.
The dissatisfaction with Icahn’s management of Grand Harbor dates back years, with members expressing concerns about underinvestment, declining membership, and the outsourcing of maintenance to lower-quality vendors. The disagreements came to a head in 2020 when consultants identified significant capital repairs needed for the club’s facilities, which Icahn’s management tried to pass on to members. The COVID-19 pandemic further exacerbated tensions, leading to legal threats and eventual turnover of the club to the members at no cost.
Despite Icahn’s belief that giving away the club would resolve the issues, the legal battles have continued to escalate with both parties pursuing claims against each other. The club members have incurred significant legal costs, while Icahn’s companies are seeking to recoup potentially tens of millions of dollars from the club. The outcome of the lawsuits could determine the future ownership and financial obligations of Grand Harbor, with the possibility of Icahn reclaiming control of the property.
As the legal proceedings continue, Grand Harbor has seen a resurgence in membership and property values, with the new owners investing in necessary capital repairs that Icahn had previously declined to fund. The dispute between the club members and Icahn highlights the complexities of governance and ownership in exclusive communities like Grand Harbor, where wealthy individuals clash over financial responsibilities and decision-making control. The ultimate resolution of the legal battles will have significant implications for both parties and the future of the prestigious beach and golf destination.
