Schneider v. La Fontana Apartments of Palm Beach, Inc.
Docket: No. 93-0205
Court: District Court of Appeal of Florida; January 18, 1994; Florida; State Appellate Court
An appeal was filed concerning a judgment against an apartment owner for attorney’s fees and costs due to noncompliance with a cooperative's rule. The trial court subsequently ordered foreclosure on the owner’s cooperative unit when the fees remained unpaid. The appellate court reversed this foreclosure judgment, determining that there was no legal basis for enforcing such a judgment through lien foreclosure, either under Florida statutes or the cooperative’s governing documents. The dispute originated when the owner was accused of violating a rule regarding the storage of nonconforming items, which were later found not to belong to him. Although the trial court denied an injunction due to the removal of the items, it awarded attorney’s fees based on a finding of intentional deception by the owner. The cooperative claimed a lien against the unit based on its bylaws, which included a vague provision about securing payments for any sums due. However, the court found this provision insufficient to authorize a lien for attorney’s fees arising from rule violations, aligning with Florida Statutes Section 719.303, which allows for damages or injunctive relief but not lien foreclosure for nonpayment of attorney’s fees. The statute does not clarify whether a cooperative can impose a lien for reasonable attorney’s fees. While section 719.303(3) allows cooperatives to levy fines for noncompliance with cooperative rules, it explicitly prohibits liens for such fines. Allowing a lien for attorney’s fees would contradict this prohibition. The case at hand reveals no statutory authority for a cooperative to enforce attorney’s fees through lien foreclosure for rule violations. Although the trial court could assess attorney’s fees, the cooperative's internal documents lack clarity for imposing such a severe remedy, and no statutory basis exists for liens on attorney’s fees. As the foreclosure judgment is deemed invalid for these reasons, further consideration of the owner's exemption argument or the cooperative's homestead exemption argument is unnecessary. The judgment of foreclosure is reversed and remanded, with concurrence from Judges Warner and Klein. The only section permitting lien-based foreclosure, section 719.108, restricts it to unpaid rents and assessments.