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Lakes of the Meadow v. ARVIDA/JMB

Citations: 714 So. 2d 1120; 1998 WL 390537Docket: 97-3225

Court: District Court of Appeal of Florida; July 15, 1998; Florida; State Appellate Court

Narrative Opinion Summary

In this case, nine condominium maintenance associations filed a lawsuit against the developer, Arvida/JMB Partners, L.P., for construction defects discovered following Hurricane Andrew in 1992. The developer had previously transferred control of the associations to unit owners, with eight associations executing releases that purportedly barred claims for pre-release date defects. The trial court granted summary judgment in favor of the developer, but upon appeal, the court found the summary judgment premature due to unresolved issues and the absence of closed pleadings. The appellate court noted that the release language was ambiguous regarding post-release date claims and that the associations had not knowingly waived their rights to latent defect claims. Furthermore, the associations raised issues of fraudulent inducement, questioned the authenticity of the releases, and contested the validity of consideration, which was nominal and unspecified. The court also acknowledged that Florida law allows for rescission of agreements based on unilateral mistake if there is no detrimental reliance. As such, the summary judgments were reversed, and the case was remanded for further proceedings to resolve these factual disputes.

Legal Issues Addressed

Ambiguity in Release Language

Application: The court found the release language ambiguous regarding claims arising after the release date, warranting reversal of summary judgment.

Reasoning: The court found the release language ambiguous regarding claims arising after the release date. Consequently, the judgment was reversed for all associations, including the one that had not executed a release.

Consideration for Releases

Application: The associations contested the validity of the consideration for the releases, which was documented as $10 and other unspecified values, arguing that no statutory requirement necessitated these releases.

Reasoning: The associations contested the validity of the consideration for the releases, which was documented as $10 and other unspecified values. They argued that no statutory requirement necessitated these releases.

Fraudulent Inducement and Authenticity of Releases

Application: The associations alleged fraudulent inducement and questioned the authenticity of signatures on the releases, leading to the denial of summary judgment due to unresolved factual disputes.

Reasoning: Moreover, the associations alleged fraudulent inducement and questioned the authenticity of signatures on the releases. Given these unresolved factual disputes, the summary judgment was deemed premature.

Rescission Based on Unilateral Mistake

Application: The associations sought rescission of the releases, claiming they were unaware of serious latent construction defects, and Florida law permits rescission under such circumstances if there is no detrimental reliance by the other party.

Reasoning: The associations argued for rescission based on unilateral mistake, asserting that they were unaware of serious latent construction defects, which impacted the agreement's substance. Florida law allows for rescission under such circumstances if there is no detrimental reliance by the other party.

Summary Judgment and Prematurity

Application: The court held that the developer's motion for summary judgment was premature because the pleadings were not closed and the developer had not filed an answer.

Reasoning: The court acknowledged that the developer's motion for summary judgment was premature, as the pleadings were not closed, and the developer had not filed an answer.