Resolution reached in a long-standing legal battle over alleged harassment of Little Havana businesses including Ball & Chain
The City of Miami has consented to a $12.5 million settlement to resolve a federal lawsuit brought by the proprietors of the famous Ball & Chain nightclub and Taquerias El Mexicano in Little Havana. The settlement resolves a bitter three-year legal dispute that accused city officials, led by Commissioner Joe Carollo, of conducting a targeted harassment campaign against the businesses.
The lawsuit, filed by The Mad Room LLC, alleged that the city weaponized its code enforcement and other departments to cripple the businesses of Ball & Chain’s owner, Bill Fuller, who had openly supported Carollo’s political rival in the 2017 election. According to the complaint, the city carried out a series of raids and violations specifically aimed at Fuller’s establishments, including Ball & Chain, leaving other Calle Ocho businesses untouched.
Settlement breakdown and city’s decision
On Thursday, the Miami City Commission voted 4-1 in favor of the $12.5 million settlement, with Commissioner Joe Carollo casting the sole dissenting vote. Although the city asserts that it has not acted improperly, officials described the settlement as a tactical decision to prevent additional legal expenses that could have increased if the case proceeded to trial.
By reaching this settlement, the city sidesteps the possibility of much greater legal fees. A statement noted that if the plaintiffs had won in court, they would have been entitled to attorney's fees that could have exceeded the settlement amount. Of the total $12.5 million, $8.2 million will be sourced from the city's funds, while $4 million will be covered by QBE Specialty Insurance, the city's insurer. Furthermore, the settlement addresses $300,000 in code violation liens against the businesses involved.
Commissioner Miguel Angel Gabela articulated his support for the settlement, arguing that continuing the legal dispute would only extend the problem and potentially impose greater costs on taxpayers. He stressed the importance of moving forward and the need to avoid drawn-out litigation.
Background on the Ball & Chain case and Carollo's controversies
The lawsuit against the city originated from accusations that Miami officials, particularly Commissioner Joe Carollo, were targeting Ball & Chain and other businesses owned by Bill Fuller. The complaint claimed that city departments collaborated to harass and intimidate Fuller’s enterprises through persistent code enforcement actions, ultimately aiming to undermine his businesses and violate his property rights.
This is not Carollo’s first encounter with controversy. In a separate lawsuit, he was found personally liable for infringing on the free speech rights of both Bill Fuller and fellow Little Havana businessman Martin Pinilla, who had supported his opponent in the 2017 election. A jury awarded Fuller and Pinilla $63.5 million in that case, but Carollo has appealed the decision, citing financial difficulties in settling the judgment. A judge has also ruled that Carollo’s Coconut Grove home cannot be seized to satisfy the debt.
Despite his ongoing legal troubles, Carollo continues to assert that he did nothing wrong, claiming that the businesses in question had a history of violations, thus justifying the city’s actions. He was the only member of the City Commission to oppose the $12.5 million settlement, maintaining that city employees acted appropriately throughout the process.
However, the legal matters surrounding this case are not fully resolved. QBE Specialty Insurance is currently suing the city to avoid paying over $10 million in legal fees related to Carollo’s defense. The insurer argues that Carollo’s actions were intentional and retaliatory and, therefore, it should not be responsible for covering those costs. This lawsuit is still pending.
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