Tropicana Condominium Assoc. v. Tropical Condominium, LLC
208 So. 3d 755
| Fla. Dist. Ct. App. | 2016Background
- Tropicana Condominium (48 units, established 1983) has a Declaration without Kaufman language; section 14.1 required unanimous owner consent to terminate the condominium (section 14.5 protects that unanimity requirement).
- In 2007 the Florida Legislature amended Fla. Stat. § 718.117 to allow termination with 80% approval provided no more than 10% object; statute declared applicable to condominiums in existence on or after July 1, 2007.
- The Association sought to rely on the 2007 statute and proposed Declaration amendments (2012–2013) lowering termination thresholds (to 65%, then 80%) but did not obtain unanimous approval required by the Declaration for altering the termination provision.
- The Association also added section 13.10 (2012) limiting any owner to holding no more than two Tropicana units; a majority of owners approved that amendment.
- Tropical Condominium, LLC (five owners who oppose termination and represent >10% of owners) sued for declaratory relief. The trial court granted summary judgment invalidating the termination-related amendment and the two-unit ownership restriction; the Association appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2007 amendment to § 718.117 retroactively applies to override the Declaration’s unanimous-consent termination requirement | Retroactive statute applies to condominiums in existence after July 1, 2007 and thus makes the Association’s lower-threshold amendments effective | Declaration lacks Kaufman language but Association contends Legislature intended retroactive application; thus unanimous amendment was unnecessary | Retroactive application to Tropicana is impermissible because it would impair vested contractual veto rights and cause a severe, permanent change; amendment to section 14.1 is invalid (affirmed) |
| Whether the two-unit ownership restriction (§ 13.10) unreasonably restrains alienation | The restriction is an unreasonable restraint that impedes marketability and lending | Restriction is a reasonable, prophylactic rule for a small (48-unit) building to protect financial stability after prior multi-unit owner foreclosure; marketability impact is negligible | Restriction is reasonable under the circumstances; trial court’s invalidation reversed and § 13.10 upheld |
Key Cases Cited
- Cohn v. Grand Condo. Ass’n, Inc., 62 So. 3d 1120 (Fla. 2011) (statutory change to condominium voting rights constituted an impairment of contract)
- Pomponio v. Claridge of Pompano Condo., Inc., 378 So. 2d 774 (Fla. 1979) (adopts three‑prong test for whether retroactive statutory changes to condominium law impair contracts)
- Woodside Vill. Condo. Ass’n, Inc. v. Jahren, 806 So. 2d 452 (Fla. 2002) (upholding association authority to impose reasonable transfer restrictions)
- White Egret Condo., Inc. v. Franklin, 379 So. 2d 346 (Fla. 1979) (recognizing permissible condominium transfer restrictions)
- Hidden Harbour Estates, Inc. v. Norman, 309 So. 2d 180 (Fla. 1975) (condominium owners tolerate intrusion and associations may exercise control over unit ownership)
- Seagate Condo. Ass’n, Inc. v. Duffy, 330 So. 2d 484 (Fla. 4th DCA 1976) (reasonableness is the test for restraints on alienation)
- Aquarian Found., Inc. v. Sholom House, Inc., 448 So. 2d 1166 (Fla. 3d DCA 1984) (restrictions evaluated for impact on improvement and marketability)
- Iglehart v. Phillips, 383 So. 2d 610 (Fla. 1980) (marketability as a consideration in evaluating restraints on alienation)
- Courvoisier Courts, LLC v. Courvoisier Courts Condo. Ass’n, Inc., 105 So. 3d 579 (Fla. 3d DCA 2012) (summary judgment review of pure questions of law is de novo)
