Miami-based Platinum Luxury Auctions LLC was supposed to be in the business of selling luxury real estate. But a competitor claimed it instead spent its time executing an elaborate and clandestine scheme that included mailing damning dossiers to the media and the rival's wealthy clients.
The plot had immediate and expensive repercussions, according to alleged target Concierge Auctions LLC. It derailed Concierge's auction of a $7.5 million property under contract for client Richard Peacock a deal that cost the company more than $400,000 in commissions, according to court pleadings.
The dispute came to a head Wednesday when the Third District Court of Appeal ruled on a motion to enforce a years-old deal between the feuding auction houses.
Concierge filed an eight-count complaint in Miami-Dade Circuit Court in 2014 against Platinum, its president Trayor Lesnock and employee Kevin Vaughn, alleging defamation, aiding and abetting defamation, conspiracy to commit defamation, violation of Florida's Unfair and Deceptive Trade Practices Act, conspiracy to violate the trade act, tortious interference with business relationships, conspiracy to tortuously interfere and independent tort of conspiracy. It claimed Platinum sent 17 "Federal Express sabotage packages" under a false name to clients, real estate brokers and media contacts, including newspaper journalist Russ Lemmon. Each package was at least seven pages long, including newspaper articles and disparaging comments about Concierge principal Chad Roffers, according to court filings.
Concierge alleged Lesnock used a pseudonym to posted negative comments about it in the comments section of an online magazine article about Concierge's unsuccessful auction of basketball legend Michael Jordan's home in Highland Park, Illinois.
In his deposition, Lesnock admitted to making the post.
Court records show the parties settled, but were soon back in court with Concierge alleging Platinum violated the agreement by continuing to publish a January 2014 article containing disparaging remarks.
The case reached the Third District Court of Appeal, which Wednesday reversed a lower court ruling to enforce the settlement agreement and compel Platinum to remove the article.
Miami-Dade Circuit Judge William Thomas had ruled in Concierge's favor, finding Platinum had continued to host the online post on two websites, in violation of the settlement agreement's nondisparagement provision. He ruled to enforce the agreement, and ordered the defendants to remove the post.