Phoenix Gulf Towers Lawsuit: Cracks, Engineering Report, Safety

The Phoenix Gulf Towers lawsuit is a civil case filed in August 2020 in Baldwin County, Alabama, in which the Palm Beach Condominium Association accused the developers and contractors building Phoenix Gulf Towers of causing serious structural damage to the neighboring Palm Beach Resort in Orange Beach through improper pile driving and excavation. The suit names Brett Real Estate, Robinson Development Company Inc., H.H. Jordan Construction Co. of Mobile, Southern Earth Sciences, and the City of Orange Beach as defendants, and it was brought by attorney Adam Milam on behalf of the association.¹

What the Association Says Happened

Palm Beach Resort is a five-story condominium complex that was built starting in 1997 and occupied beginning in 2001. Phoenix Gulf Towers, a two-tower high-rise project by Brett/Robinson Realty, went up less than 25 feet from the Palm Beach property line.¹

Maintenance workers at the resort first noticed problems in late 2019, shortly after construction on the Gulf Towers began. According to the lawsuit, the resort developed multiple cracks and separations in its outer and inner walls, foundation damage, separated staircases, and wall movement throughout the building. The association alleged the conditions placed the resort “in serious jeopardy with risk of injury and death to multiple occupants, tenants, guests and residents” and asked the court to halt construction next door.¹

The Engineering Report Behind the Claim

The association’s case rests heavily on an analysis by John Cleary, a civil engineering professor at the University of South Alabama whose specialties include construction vibration evaluation and forensic analysis.²

After visiting the site on May 27, 2020, Cleary concluded the damage was “consistent with damage caused by excavation and pile driving in close proximity to a structure.” He found that vibrations from pile driving caused “dynamic settlement” in the sandy, low-density soils under the resort, with movement occurring between June and October 2019 and the greatest displacement on the fifth floor. Cleary also reported that the building had begun to lean and warned that cracking could expose reinforced steel to corrosion, weakening the concrete foundation over time. He recommended further vibration monitoring, documentation of additional building movement, and a comprehensive inspection of every unit by a qualified engineer.¹³

How the Developer Responded

Brett/Robinson rejected the association’s version of events. Robert Kennedy Jr., a spokesperson for the company, said Brett Robinson employed its own engineering firm to monitor vibrations during pile driving and that the firm concluded the vibrations were “not of sufficient size and quantity to cause any impact” to the Palm Beach Resort.¹

The defense also argues the resort’s problems predated the Gulf Towers project. Kennedy said the company planned to subpoena records showing a history of issues at Palm Beach Resort, including sinkholes, before construction began.³ The resort had been repaired and painted in July 2019, which defendants cited as evidence of pre-existing maintenance needs.¹

Is the Building Safe?

A judge ordered the City of Orange Beach to inspect the Palm Beach Resort. City Administrator Ken Grimes confirmed the city brought in outside engineers to analyze structural integrity and habitability while the condo association’s own engineers continued crack monitoring and soil density investigation.¹ Cracks were being monitored daily during that period.³

When the outside engineering analysis was finished, it concluded the Palm Beach Resort was fit for occupancy despite the cracks.⁴ That answered the immediate safety question. It did not resolve the legal fight over who caused the damage or what the owners should be paid.

Where the Case and the Project Stand

As of the most recent available reporting, the lawsuit has not been publicly reported as settled, dismissed, or tried. The City of Orange Beach declined to comment, citing pending litigation.⁵

Construction continued through the litigation. Tower I of Phoenix Gulf Towers was completed and opened, and Tower II was expected to open in August 2024.⁶

Why the Surfside Collapse Drew New Attention to This Case

The lawsuit took on new public attention after the Champlain Towers South collapse in Surfside, Florida, on June 24, 2021, which killed 98 people. Residents at the Surfside building had earlier reported that nearby luxury construction made their building shake, echoing the complaints at Palm Beach Resort.¹

Engineers cautioned against pushing the comparison too far. Champlain Towers South was 12 stories, built in 1981 under less restrictive codes; Palm Beach Resort is five stories, built under post-1997 standards.¹

Milam used the Surfside case to argue for tighter regulation of heavy construction near existing buildings and mandatory routine inspections. Orange Beach Mayor Tony Kennon said the city would look at whether additional regulations for older structures were needed. Milam also pointed out that Orange Beach relied primarily on fire marshal reports for building oversight, while neighboring Gulf Shores conducted triennial city-backed inspections.¹

1
AL.com. Cracks, Separated Staircases, Moving Walls: Similarities Surface With Surfside Disaster in Orange Beach Condo Lawsuit
2
University of South Alabama. John Cleary Faculty Profile
3
ABC 33/40. Lawsuit: Major Cracks in Alabama Beach Condo Caused by Nearby Construction
4
Lagniappe Mobile. Report: In Spite of Cracks, Orange Beach Condo Fit for Occupancy
5
WEAR-TV. Lawsuit Claims Major Cracks in Orange Beach Condo Caused by Nearby Construction
6
PhoenixVacationProperties.com. Phoenix Gulf Towers I and II