WEST PALM BEACH, FL — A Boca Raton-based developer has sued its general contractor in Palm Beach County Circuit Court over the Nautilus 220 luxury condominium project in Lake Park, alleging defective work, improper billing, and a fraudulent construction lien exceeding $11 million, according to a complaint filed July 13, 2026.
Forest Development, LLC, whose principal place of business the complaint lists at 1199 S. Federal Highway in Boca Raton, filed the lawsuit against KAST Construction II, LLC, a West Palm Beach-based contractor with a principal address at 701 Northpoint Parkway. The case, Forest Development, LLC v. KAST Construction II, LLC, Case No. 502026CA007838XXXAMB, is pending in the Fifteenth Judicial Circuit and was assigned to Division AI. Attorneys Kelly R. Melchiondo and Felix X. Rodriguez of Bilzin Sumberg Baena Price & Axelrod LLP filed the complaint on behalf of Forest.
The complaint centers on Nautilus 220, described in the filing as two 24-story condominium towers at 220 Lake Shore Drive in Lake Park. According to the complaint, the parties entered into a written Construction Agreement under which KAST agreed to build the project for a Guaranteed Maximum Price of approximately $242.1 million.
The lawsuit brings four counts: breach of contract, breach of express warranty, contractual indemnification, and fraudulent lien under Florida Statute § 713.31.
According to the complaint, KAST failed to achieve Substantial Completion within the contract time. The filing alleges the delays included an approximately seven-month setback tied to damage involving the lift station. The complaint alleges KAST failed to monitor the water supply in units during construction and failed to supervise its subcontractors' handling of plumbing fixtures, which the filing says caused major damage to vanity cabinets installed in units.
The lawsuit alleges KAST also failed to follow the agreement's punch list and closeout procedures. According to the complaint, a June 26, 2026, punch list contained hundreds of open items, and the filing alleges KAST unilaterally declared construction concluded while more than 400 punch items remained outstanding.
On billing, the complaint alleges KAST's pay applications from December 2025 through May 2026 total roughly $14 million in amounts Forest and its consultants dispute. The filing alleges the contractor's change order log included more than $5.5 million in pending change orders as of March 2026, along with an additional $6.3 million in change orders for which Forest says it had "no information." The complaint also alleges a $484,000 retainage discrepancy for plumbing subcontractor Suntech.
The complaint further alleges KAST failed to deliver required Unit Lien Waivers for the approximately 260 condominium units Forest has sold, which the filing says obstructed Forest's ability to close sales and deliver clear title to buyers.
The lawsuit references a separate action Crown Roofing & Waterproofing LLC filed against Forest in the same circuit court on June 15, 2026, seeking payment of roughly $1.2 million the subcontractor says it is owed for waterproofing work performed under a KAST subcontract. According to Forest's complaint, KAST's own sworn accounting listed only about $897,000 due to Crown, a discrepancy the filing calls evidence that KAST's monthly pay application certifications and its June 15, 2026, sworn Final Payment Affidavit are not accurate. The complaint also references a separate action by plumbing subcontractor Suntech against KAST's payment bond surety.
On the fraudulent lien claim, the complaint alleges KAST recorded a Claim of Lien in the Palm Beach County Official Records on May 13, 2026, initially in the amount of approximately $14.6 million and later reduced to approximately $11.4 million. According to the lawsuit, KAST willfully exaggerated the amounts owed by including disputed change orders, sums Forest says it never approved, and inaccurate figures for Crown Roofing.
Forest is seeking compensatory and liquidated damages, discharge of the recorded lien, punitive damages under Section 713.31(2)(c), attorney's fees, and pre- and post-judgment interest, according to the complaint. The lawsuit also seeks contractual indemnification for the Crown Roofing action.
The complaint reviewed by Boca Post does not include a response from KAST Construction II. The case is newly filed.
The allegations in the complaint have not been proven in court.
Boca Post’s West Palm Beach lawsuits coverage highlights civil complaints, court records, and legal disputes involving residents, businesses, and organizations in the area.
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