A
Miami-Dade Circuit Court judge has ruled in favor of Alex Arguelles, a former business partner of Adam Hendry, CEO of multifamily real estate firm Tzadik Management, awarding him $10.6 million in damages tied to the sale of apartment portfolios across the US. The judgment marks the latest development in a four-year dispute between Arguelles and Hendry over millions of dollars allegedly withheld from property deals.

    Arguelles, who co-founded Tzadik with Hendry and David Runyon in 2007, claimed that Hendry and affiliated entities failed to pay him his share of profits from property sales after they parted ways in 2019. In March, Arguelles sued Hendry and 19 limited liability companies tied to Tzadik, seeking to enforce an $8.9 million arbitration award granted by the American Arbitration Association.

    The dispute stems from a 2020 settlement agreement between Arguelles and Hendry, under which Hendry was supposed to pay Arguelles a lump sum of $100,000 and then disbursements from property sales. Although the initial payment was made, Arguelles claimed he had not received any further payments despite the arbitration award.

    The portfolio in question spans nearly 7,000 units across Florida, Texas, Georgia, and South Dakota. The final judgment includes "legal interest" set by state statute, which increased the total amount to $10.6 million.

    "This victory reinforces the importance of integrity in business partnerships," Arguelles said in a statement. His attorney, Raul Morales, added that Hendry had profited from every sale but failed to pay Arguelles his share.

    Hendry and Tzadik entities had raised accusations against Arguelles in an attempt to vacate the arbitration award, claiming that disbursements were negotiated before the pandemic when the portfolio was expected to sell for $216.3 million, but actually sold for $150 million. However, Morales argued that there is no valid explanation for Hendry's failure to pay Arguelles his share of profits.