Orange Beach, Ala. – (OBA) – Owners of six units of Caribe near Perdido Pass are suing developer Larry Wireman, his wife Judy Wireman and the resort’s condo association board of directors over more than $11.6 million dollars’ worth of work done by Wireman’s companies following Hurricane Sally. Plaintiffs are demanding a jury trial.

The suit, which was filed in Baldwin County Circuit Court on Aug. 1, says the defendants named are violating state law by maintaining a role in the running of the condo board and grounds.

“The governing Declaration, Art. XIV, Section 14.01 requires the actual transfer of control of the association to the individual unit owners,” the filing states. “The Alabama Condominium Act prevents the developer and its affiliates from artificially prolonging control of the Board and Association as their interests conflict with the individual unit owners, including but not limited to preventing the cancellation of related party contracts under 35-8A-305.”

The condos were first completed in 2002 and the lawsuit maintains that Larry Wireman is board president and Judy Wireman is the Secretary and Treasurer.

Caribe Reality owned by the Wiremans was paid $1.2 million in both 2020 and 2021 for work at the resort.

“Defendant Caribe Realty, Inc., is an Alabama corporation, which was run and operated by Judy R. Wireman and Larry Wireman, is now owned by Larry Wireman,” the filing states. “Caribe Realty is largely a real estate company, with a qualifying broker and agents, its sales units at Caribe Resort, leases and operates a rental program at Caribe Resort. It also manages the Association, including accounting, administration, maintenance, and common area cleaning.”

Another company owned by the Larry Wireman, Caribe Inc., was also named in the suit as collecting almost $9 million for Hurricane Sally repairs and for providing telecommunication services.

“Defendant Caribe, Inc., is an Alabama corporation, it was initially formed in August 2000 by Defendant Larry Wireman to own the land upon which Caribe Resort Condominiums were built,” the filing states. “It is wholly owned by Defendant Larry Wireman. Caribe, Inc., now apparently serves as a general contractor for performing repair and construction work at Caribe Resort Condominiums. It also provides telecommunication services for the Caribe Resort Condominium. In 2021, the Association via the Board of Directors and its President Larry Wireman, paid Defendant Caribe, Inc., $8,045,655 for Hurricane Sally repairs, and $726,955 for telecommunication services.”

Yet another Wireman company, Sentinels, was paid nearly half a million dollars in 2020-21 serving as the security agency for the resort.

“Defendant Sentinels, LLC, is an Alabama limited liability company formed and owned by Defendant Larry Wireman,” the filing states. “Defendant Sentinels provides security services for Caribe Resort Condominiums and is paid by the Defendant Board of Directors and its President Larry Wireman. Defendant Sentinels was paid $408,000 in 2020 and 2021.”

All of this, the lawsuit contends, is illegal under Alabama law and the plaintiffs are seeking to have the Wiremans removed from the board as called for by state law, according to the filing.

“Defendants Board, Larry Wireman and Judy Wireman have breached their fiduciary duties to the individual unit owners at Caribe Resort Condominiums,” the filing states. “Defendants Board, Larry Wireman and Judy Wireman have breached their duties to not engage in self-dealing and for profit in violation of the Declaration of Condominium, Alabama Nonprofit Corporation Act, the Alabama Uniform Condominium Act, the Articles of Incorporation of the Association, and Alabama common law.”

Among other things in the lawsuit, the plaintiffs are calling for termination of contracts with Wireman’s companies, a third party forensic accounting and audit of the association’s finances, asking to ban the Wiremans and current board members from serving on the board of directors for 10 years, payment of attorney’s fees and “such other further and different declaratory relief as this Court deems appropriate.”

Adam M. Milam is representing the plaintiffs who are Dolores Baudo and Robert Simmons from unit D-615, Brian and Sandee Collins of unit D-815, Kevin Cross of unit B-605, Fred Drews and Jerry Drews of unit D-507, Jay Gates of units D-612 and D-915 and Deborah and David Strevy of unit C-1204.