URGENT UPDATE: T&K Property Management is making a last-ditch effort to reduce the staggering $893,784 damages awarded by a jury for fraud and breach of contract involving the Great Northern Block condominiums in Fargo. Just two months after the jury’s decision, the company filed a motion on November 18, 2023, claiming the award is “unreasonable” and seeking a reduction of $279,830.21.
The case centers around multiple buyers who collectively paid approximately $1 million for units that remained unfinished and uninhabitable long after promised deadlines. The turmoil began in November 2023 when the buyers, including Mark and Stephanie Erceg from Georgia and local firm KLD Enterprises, took legal action against T&K and its managing agent, Tom Smith.
According to court documents, Smith assured the Ercegs they would “definitely” close on their unit by the end of August 2023, well before their daughters’ rent lease expired. However, they later discovered T&K planned to sell the unit to another buyer, despite the family’s substantial investment of $200,000 for additional work.
Rob Lauf, representing KLD Enterprises, faced similar frustrations. After agreeing to buy unit 526, he encountered repeated delays from T&K, with promised closing dates stretching from June 2022 to August 2023. This led to significant financial repercussions, as he was forced to rent an apartment while incurring tens of thousands in capital gains taxes due to the delay in selling his previous home.
Another buyer, Jolie Graybill, expressed disbelief at T&K’s actions. After months of collaboration on design choices and a signed agreement for unit 506 at $599,000, she was faced with an unexpected price hike of $70,000 and no clear accounting for the increase. The couple was ultimately denied a closing date and found their unit re-listed for sale.
In a weeklong trial that concluded on September 16, 2023, the jury sided with the plaintiffs, awarding them substantial damages. The ruling highlighted the jury’s finding that T&K misrepresented the project’s amenities and failed to deliver on contractual promises.
Despite the jury’s clear verdict, T&K’s recent motion argues that the Ercegs’ claims stem from “outrageous selections” in their design specifications and that Lauf should have mitigated his losses. The plaintiffs’ attorneys responded firmly, stating there is “no basis” for reducing the damages and asserting that T&K’s claims should be dismissed as new evidence was improperly submitted.
As of now, the Great Northern Block website lists several units as available for sale, even as the legal saga unfolds. The court’s ruling on T&K’s request for a damages reduction remains pending, heightening the stakes for all parties involved.
For affected buyers, the emotional toll of this drawn-out case continues to mount. They had invested not just money, but hope in their future homes, only to face setbacks that have disrupted their lives and caused financial strain.
Stay tuned as we monitor this developing story for updates on T&K’s motion and the implications for the buyers involved.
