UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

MIAMI DIVISION

www.flsb.uscourts.gov

In re: Chapter 11 

COSTA HOLLYWOOD PROPERTY OWNER, LLC Case No. 19-22483-AJC 

Debtor. 

__________________________________________/

MAXCOM ADVISORS, LLC, 

Plaintiff,

vs. 

COSTA HOLLYWOOD PROPERTY OWNER, LLC, 

Defendant.

_________________________________________/

ADVERSARY COMPLAINT 

COMES NOW, MAXCOM ADVISORS, LLC, by and through undersigned counsel, sues

COSTA HOLLYWOOD PROPERTY OWNER, LLC, and as grounds states as follows:

JURISDICTION, VENUE AND PARTIES

1. MAXCOM ADVISORS LLC, is a Florida Limited Liability Company authorized to do 

business in Broward County, Florida and the owner of 777 N Ocean Drive, Unit S210, Hollywood, 

Florida 33019.

2. Defendant, COSTA HOLLYWOOD PROPERTY OWNER, LLC, is a Delaware Limited 

Liability Company and the owner of the Shared Facilities at the Costa Hollywood Project.

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3. This Court has jurisdiction over this adversary proceeding pursuant to 28 U.S.C. Secs. 157 

and 1334. This adversary proceeding is a non-core proceeding pursuant to 28 U.S.C. Sec. 157(c). 

4. Venue is proper in this district pursuant to 28 U.S.C. Sec. 1409. Plaintiff consents to the 

entry of final orders and judgment by the Bankruptcy Court. 

5. All conditions precedent to the filing of this action have been performed, excused or 

otherwise waived. 

PROCEDURAL BACKGROUND

6. COSTA HOLLYWOOD is a condominium hotel operating under Florida Statute 718 and 

its Condominium Documents recorded in the Official Records of Broward County.

7. The Declaration of the Association prohibits owners from inhabiting their units more than 

sixty (60) days in a year and they are required to be used for transient occupancy. The hotel was 

marketed and designed to be a hotel with the unit owners given the ability to rent out their units 

on their own or through a hotel program run through the Shared Facilities Unit Owner. See Exhibit 

“A.”

8. The value of Adversary Plaintiffs investment requires is contingent upon the ability to rent 

out the units. The common elements at the Resort are maintained by fees paid by each unit owner 

to the COSTA HOLLYWOOD CONDOMINIUM ASSOCIATION, INC., and fees paid to 

COSTA HOLLYWOOD PROPERTY OWNERS, LLC to provide resort amenities including 

check-in desks for transient renters.

9. Based on the Declaration of Condominium, (hereinafter the “Declaration”), what would be 

known as common elements are part of the Shared Facilities Unit, owned, managed and maintained 

by the Shared Facility Unit Owner. Under Article 7.3 of the Declaration, PUOs are obligated for 

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the full payment of all expenses incurred by the SFUO in connection with the maintenance, repair, 

replacement, improvement, management, operation and insurance of the shared facilities. 

10. Moreover, the Declaration provides that the SFUO is entitled to establish reasonable rules 

and regulations regarding the use of shared facility and transient rental procedures. Article 16.9 

specifically provides that PUOs may rent their own units or hire an agent to do so, with no 

obligation that PUOs use the SFUO’s rental program1. 

11. Although the terms and conditions are provided for in Article 16.9 of the Declaration, the 

SFUO has recently enacted a Rule requiring, among other things, a $25,000.00 security deposit 

for each unit a PUO decides to rent through anyone other than the SFUO or its agents. 

12. Plaintiff was a party and had filed a Motion to Intervene in State Court before the debtor 

declared bankruptcy. As alleged in the State Court action and in the Trustee’s Motion for an that 

the subject property—including each and every unit owned by the PUOs—is in jeopardy of an 

immediate loss due to the intentional malfeasance of COSTA HOLLYWOOD PROPERTY 

OWNER LLC and its principal Moses Bensusan. 

13. Specifically, Plaintiff alleges that the Condo Association is being mismanaged and the 

Condo Fees being collected from PUOs are being collected and used by the Property Manager for 

personal use. 

ADVERSARY PLAINTIFF OWNS A UNIT AND IS DIRECTLY AFFECTED BY THE 

CURRENT PROCEEDING

14. COSTA HOLLYWOOD was marketed as a condominium hotel. From the opening of the 

building, unit owners were permitted to rent out their units with minimal restrictions. 

1 PUOs are not permitted to live in their units for more than six months per year, pursuant to Fla. Stat. 

Chapter 718 and the Declaration. 

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15. Section 16.9 of the Condominium Declaration of Costa Hollywood recorded on November 

22, 2017 provides as follows:

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16. On or about April 16, 2019, the building attempted to change the rules for owners who do 

not rent through the hotel program. See attached Exhibit “B.”

17. Specifically in contravention of the Condominium Declaration, the building through the 

Defendants in this matter attempted to impose the following restrictions on transient rentals:

a. Requiring a $25,000.00 deposit to be paid to Costa Hollywood Property Owner, 

LLC, for each unit that was not rented through the hotel program;

b. Requiring a $5,000,000.00 per occurrence liability policy for each unit;

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c. Unreasonably refusing to provide more than one set of electronic keys to access 

the units; 

d. Prohibiting check-in and check-out on the weekends, and, 

e. Unreasonably and for no legitimate purpose requiring the actual manager to 

present for each check-in.

18. Through negotiations with some unit owners, COSTA HOLLYWOOD PROPERTY 

OWNER, LLC, originally agreed to waive the new requirements but on July 12, 2019, issued new 

requirements including a requirement that a deposit in the amount of $14,900.00 be paid to COSTA 

HOLLYWOOD PROPERTY OWNER, LLC.

19. Additionally, in the new regulations issued July 12, 2019, housekeeping by unit owners 

not participating in the hotel program is no longer allowed on the weekends—effectively 

preventing any weekend check-ins for new transient renters.

20. COSTA HOLLYWOOD PROPERTY OWNER, LLC, also indicated in the rules 

promulgated on July 12, 2019 that they intend to charge transient renters not renting through the 

hotel program $50 per day as a resort fee-double the fee charged by the hotel program for units 

rented through their program. 

21. Additionally, COSTA HOLLYWOOD PROPERTY OWNER, LLC has refused to provide 

keys to adversary/Plaintiff’s appointed representative.

22. Due to the arbitrary and unreasonable restrictions placed by COSTA HOLLYWOOD, the 

Plaintiff is being injured and has been losing approximately $4000 per month since May 2019.

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COUNT I INJUNCTION

23. Plaintiff, MAXCOM ADVISORS, LLC, reasserts and realleges paragraphs 1 through 22

as if fully set forth herein.

24. Florida Statute 718.303(1) provides that any unit owner may file suit for injunctive relief 

due to a failure to comply with the provisions of Florida Statutes Chapter 718, the Declaration, the 

documents creating the association, and the association bylaws to obtain relief for non-compliance. 

25. Plaintiff is suffering irreparable harm by being forced to leave its unit vacant, cancelling 

reservations, and refusing Plaintiff access to the unit. 

26. Plaintiff has no adequate remedy at law. 

27. Plaintiff has a substantial likelihood of success on the merits of this action. 

28. A temporary injunction will serve both Plaintiff and the public interest. 

29. Plaintiff has retained the undersigned counsel and is required to pay said counsel 

reasonable fees to bring this suit. 

30. Pursuant to the Declaration and Florida Statute Section 718.303 the prevailing party is 

entitled to an award of attorney’s fees and costs.

WHEREFORE, the Plaintiff, MAXCOM ADVISORS, LLC, respectfully request that this 

Honorable Court enter a temporary and permanent injunction enjoining the Defendant from 

violating the Declaration by increasing the deposits, increasing the liability policies, and creating 

overly burdensome restrictions on rentals of Plaintiff unit, and for such other relief that the Court 

deems just and proper.

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Dated this 27th of November, 2019. Respectfully submitted,

THE ORLOFSKY LAW FIRM, P.L.

COUNSEL FOR 

MAXCOM ADVISORS LLC, 

767 Arthur Godfrey Road

Miami Beach, Florida 33140

Telephone: 305-538-2344

Facsimile: 305-907-5248

By: /s Alexander S. Orlofsky_______

 ALEXANDER S. ORLOFSKY, ESQ.

 alex@orlofskylawfirm.com

 Florida Bar No. 676705

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