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First Equitable Realty III, Ltd. v. Grandview Palace Condo Assoc., Inc.

Citation: 246 So. 3d 445Docket: 17-0669

Court: District Court of Appeal of Florida; April 11, 2018; Florida; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In a dispute between First Equitable Realty III, Ltd. and the Grandview Palace Condominium Association, Inc., the Third District Court of Appeal of Florida addressed issues related to unpaid condominium assessments and interest calculations. First Equitable Realty appealed an Amended Final Judgment that awarded the Association recovery for unpaid assessments and attorney's fees, and included counterclaims for unjust enrichment and rescission. The court affirmed the trial court's summary judgment in favor of the Association, dismissing the Developer's claims on appeal. Additionally, the Association cross-appealed the trial court's reduction of interest on the unpaid assessments. The appellate court found that the trial court improperly reduced the interest amount based on equitable considerations, as Florida Statutes section 718.116(1)(a) mandates full liability for assessments. Consequently, the appellate court reversed the interest reduction, requiring the full amount as per the Declaration of Condominium. The case was remanded for recalculation and award of the full interest due, while all other aspects of the judgment were affirmed.

Legal Issues Addressed

Interest on Unpaid Assessments under Florida Statutes Section 718.116

Application: The appellate court held that the trial court lacked discretion to reduce the interest on unpaid assessments based on equitable considerations.

Reasoning: The appellate court determined that the trial court lacked discretion to reduce the interest amount based on equitable considerations, as Florida Statutes section 718.116(1)(a) clearly stipulates a unit owner's liability for all assessments due while owning the unit.

Prejudgment Interest Calculation in Condominium Disputes

Application: The appellate court reversed the trial court's reduction of interest and mandated the award of the full amount as specified in the Declaration of Condominium.

Reasoning: The appellate court reversed the trial court's interest award, mandating that the Association receive the full amount of interest at the rate specified in the Declaration of Condominium, consistent with section 718.116(3).

Recovery of Unpaid Condominium Assessments under Florida Statutes

Application: The court affirmed the trial court's summary judgment in favor of the Association for recovery of unpaid condominium assessments.

Reasoning: The court affirmed the trial court's summary judgment favoring the Association and the award of attorney’s fees, finding no merit in the Developer's claims on appeal.