135 So. 3d 365
Fla. Dist. Ct. App.2014Background
- Harris bought property in Bristol Lakes (Aberdeen development) on October 24, 2006; Bristol Lakes HOA governing documents (recorded Dec. 2004) did not require membership in Aberdeen Club, but Aberdeen POA’s recorded amendment (June 2004) did impose mandatory membership.
- Bristol Lakes HOA sued Aberdeen POA in 2005 over the conflict; Aberdeen Club intervened; in 2010 Bristol Lakes HOA and Aberdeen Club settled to make membership non-fee/non-privileges for Bristol Lakes homeowners and to retroactively require some post-2004 title-holders to join and pay accrued fees.
- Harris sued Aberdeen POA, Aberdeen Club, and Bristol Lakes HOA in 2010 seeking declaratory relief (Count I) that she was not required to join/pay back fees, alleging the POA amendment was improperly enacted; Count II alleged breach of fiduciary duty by Bristol Lakes HOA (separately appealed); Count III sought supplemental/injunctive relief.
- Aberdeen POA asserted a statute-of-limitations defense under section 95.11(2)(b) (five-year limitation for actions founded on a written instrument); the trial court granted final summary judgment holding Harris’s declaratory claim accrued in 2004 when the POA amendment was recorded, and thus was time-barred.
- On rehearing the appellate court reversed in part: it held a challenge to the validity/enactment of the recorded amendment accrued in 2004 and is time-barred, but Harris’s declaratory-relief claim as to her personal obligations accrued when she took title in 2006, and that claim was timely.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did a declaratory-relief claim by a subsequent purchaser challenging obligation to join/pay accrue? | Harris: accrual when she took title (Oct. 24, 2006); only then did she have an interest and need for declaration. | POA: accrual when the mandatory-membership amendment was recorded in 2004; notice to the world triggered limitations. | Accrual for Harris’s personal declaratory claim was when she took title in 2006; her declaratory claim was timely. |
| When did a direct challenge to the validity/enactment of the POA recorded amendment accrue? | Harris: (implicit) later, upon injury or reliance by affected owners. | POA: accrual at recording in 2004; recording gives constructive notice and triggers limitations. | Challenge to the amendment’s validity accrued at recording in 2004 and is barred by the five-year statute. |
Key Cases Cited
- Fredrick v. N. Palm Beach Cnty. Improvement Dist., 971 So.2d 974 (Fla. 4th DCA 2008) (statute of limitations on challenge to governmental assessments accrues at creation/approval)
- Major League Baseball v. Morsani, 790 So.2d 1071 (Fla. 2001) (standard of review for pure legal questions on summary judgment is de novo)
- Briggs v. Jupiter Hills Lighthouse Marina, 9 So.3d 29 (Fla. 4th DCA 2009) (summary judgment based on statute of limitations reviewed de novo)
- Keenan v. City of Edgewater, 684 So.2d 226 (Fla. 5th DCA 1996) (cause of action accrues when resolution creating assessment was passed)
- Winkelman v. Toll, 661 So.2d 102 (Fla. 4th DCA 1995) (Florida recording statute gives notice to the world of recorded instruments)
- City of Riviera Beach v. Reed, 987 So.2d 168 (Fla. 4th DCA 2008) (limitations period begins when action may be brought)
- State Farm Mut. Auto. Ins. Co. v. Lee, 678 So.2d 818 (Fla. 1996) (accrual when action may be brought)
- Coal for Adequacy & Fairness in Sch. Funding, Inc. v. Chiles, 680 So.2d 400 (Fla. 1996) (elements required for declaratory relief)
- City of Hollywood v. Petrosino, 864 So.2d 1175 (Fla. 4th DCA 2004) (declaratory-relief claim accrues when all elements exist for the aggrieved party)