Madison at Soho II Condominium Association v. Devo Acquisition Enterprises, LLC
198 So. 3d 1111
| Fla. Dist. Ct. App. | 2016Background
- Madison at SoHo II Condominium Association sued Devo Acquisition Enterprises for $40,645.70 in unpaid condominium assessments and related fees after Devo acquired a delinquent unit.
- Devo sent a $2,412 check expressly tendered as an offer of accord and satisfaction; the Association initially rejected the offer but subsequently deposited the check.
- Devo argued that deposit of the check constituted accord and satisfaction under Fla. Stat. § 673.3111 and sought summary judgment; the trial court granted summary judgment for Devo, relying on this court's decision in St. Croix Lane Trust.
- This court had earlier held in St. Croix Lane Trust that § 718.116(3) did not preclude accord and satisfaction despite language about "restrictive endorsement."
- During the pendency of this appeal the legislature amended § 718.116(3) to state explicitly that the statutory payment priority applies "notwithstanding s. 673.3111, any purported accord and satisfaction, or any restrictive endorsement," and declared the amendment was "intended to clarify existing law."
- The Second District reconsidered St. Croix Lane Trust in light of the legislative clarification, concluded the legislature intended to preclude accord and satisfaction when § 718.116(3) (and substantially identical condominium-declaration clauses) applies, reversed the summary judgment for Devo, and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an association's deposit of a check tendered as full satisfaction effects accord and satisfaction despite § 718.116(3) and a declaration clause mirroring it | Association: § 718.116(3) and the identical Declaration clause control payment application and preclude accord and satisfaction | Devo: Deposit of the check constituted accord and satisfaction under § 673.3111; St. Croix Lane Trust supports this result | Held: Legislature's subsequent clarifying amendment shows § 718.116(3) was intended to apply notwithstanding accord and satisfaction; deposit did not create accord and satisfaction |
| Whether a court may rely on a legislative amendment enacted during appeal as an interpretation of the pre‑amended statute rather than a substantive, retroactive change | Association: The amendment clarifies legislative intent and may be used to interpret the pre‑amended statute | Devo: Relying on the amendment would be impermissible retroactive application and unfair because St. Croix Lane Trust was binding when trial court ruled | Held: Courts may consider a prompt post‑decision legislative amendment as a clarification of the original statute (recent controversy rule); this justifies revisiting and abrogating St. Croix Lane Trust |
Key Cases Cited
- St. Croix Lane Trust v. St. Croix at Pelican Marsh Condominium Ass'n, 144 So. 3d 639 (Fla. 2d DCA 2014) (prior Second District decision interpreting § 718.116(3) as not precluding accord and satisfaction)
- Ivey v. Chicago Ins. Co., 410 So. 2d 494 (Fla. 1982) (courts may consider legislative amendments shortly after controversy as clarifying intent)
- Lowry v. Parole & Prob. Comm'n, 473 So. 2d 1248 (Fla. 1985) (recent controversy rule for legislative clarifications)
- Finley v. Scott, 707 So. 2d 1112 (Fla. 1998) (legislative amendment soon after controversy can be treated as interpretation)
- Leftwich v. Florida Dep't of Corr., 148 So. 3d 79 (Fla. 2014) (distinguishing retroactivity inquiry from recent controversy rule)
- Essex Ins. Co. v. Integrated Drainage Sols., Inc., 124 So. 3d 947 (Fla. 2d DCA 2013) (legislative amendment construed as interpretation when enacted shortly after controversy)
- Ocean Two Condominium Ass'n v. Kliger, 983 So. 2d 739 (Fla. 3d DCA 2008) (third district decision potentially reading § 718.116(3) to bar accord and satisfaction)
- Hannah v. James A. Ryder Corp., 380 So. 2d 507 (Fla. 3d DCA 1980) (accord and satisfaction occurs when a payment is accepted on the express condition it is full satisfaction)
