Dune holdout in bankruptcy, failed to claim beach property on assets

The owner holding up the Army Corp dune refurbishment program failed to list the beach property on their assets, giving the county an opening to gain the access they need.


Damage to the in Flagler County from Tropical Storm Nicole. Photo courtesy of Flagler County Emergency Operations Center
Damage to the in Flagler County from Tropical Storm Nicole. Photo courtesy of Flagler County Emergency Operations Center
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The Flagler County Commission may have a new avenue to secure the easements stalling the Army Corps of Engineers beach renourishment project — all because the property owner didn’t declare her properties while filing bankruptcy.

“No lawyer would put their license in jeopardy for a client where there potentially could be a fraudulent failure to disclose on required federal court matters.”

 

— AL HADEED, county attorney

The project would create a protective sand dune to prevent storm surge from flooding Flagler Beach. 

It has been planned for years and has stalled because one property owner, Cynthia D’Angiolini, has refused to sign easements that would allow Army Corps workers to add sand on her beachfront lots; all of the other property owners in the project area have already given permission.

But County Attorney Al Hadeed told the commission on Monday, Dec. 5 that the county may have an opportunity to acquire the easement rights because of a mistake on D’Angiolini’s part.

“The short story is that we’re going to be acquiring these properties through a bankruptcy proceeding,” Hadeed said.

D’Angiolini had filed for bankruptcy in 2019, which the county already knew, Hadeed said. 

Over the weekend, Hadeed was informed that D’Angiolini had not listed the two beachfront lots and their values under her listed assets. D’Angiolini has a payment plan in place, but because the properties were not disclosed — unintentionally or otherwise — she shorted her creditors a five-figure amount, Hadeed said.

Hadeed immediately verified the information he received, hiring bankruptcy lawyer Scott Spradley to help. 

They contacted both of D’Angiolini’s lawyers — for her bankruptcy case and for her fight against the county’s eminent domain case — neither of whom were aware that the properties were not disclosed, he said.

“No lawyer would put their license in jeopardy for a client where there potentially could be a fraudulent failure to disclose on required federal court matters,” Hadeed said.

The Army Corps of Engineers can’t begin work on the renourishment project until all the easements are in place, and the project is badly needed. 

After Hurricane Ian in September destroyed most of Flagler County’s dunes, Hurricane Nicole at the beginning of November destroyed the rest and caused severe damage to State Road A1A and the residential areas along the shoreline.

For now, Spradley has filed a notice of appearance at Hadeed’s behest for Sunday, Dec. 4, to assert the county’s interest in the bankruptcy case and prevent the case from closing out early. 

 

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