Yang v. Sebastian Lakes Condominium Ass'n
123 So. 3d 617
Fla. Dist. Ct. App.2013Background
- Two condominium owners faced foreclosure of Association liens for unpaid maintenance fees after a management company change in 2008.
- Association sent demand letters with attached account ledgers asserting large past-due balances and later filed separate foreclosure complaints; owners contested accuracy and alleged a large prepayment in August 2008.
- Owners alleged records were incorrect due to the new management company misapplying payments and refused requests for prior accountant records; they also asserted retaliatory conduct by board members.
- At a bench hearing (originally framed as summary judgment), the Association introduced account ledgers through an employee of the new management company under Florida’s business-records exception; owners objected for lack of foundation/authenticity.
- The management employee testified she inherited prior records, did not work for the prior accountant, and could not verify the accuracy of starting balances or prior recordkeeping practices.
- Trial court admitted the ledgers, entered final judgments of foreclosure for the alleged balances; the appellate court reversed for failure to establish a proper business-records foundation and remanded for directed verdicts for the owners.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether account ledgers from the management company were admissible under the business-records exception to hearsay | Association: the management employee established the required foundation (timeliness, made by person with knowledge, regular business practice) and the ledgers proved amounts due | Owners: the employee could not authenticate or verify prior (pre-takeover) balances or the prior accountant’s practices, so foundation/authenticity lacking | Reversed: foundation insufficient because the witness could not verify starting balances or prior recordkeeping; ledgers inadmissible and judgments reversed |
Key Cases Cited
- Yisrael v. State, 993 So.2d 952 (Fla. 2008) (defines Florida business-records exception requirements)
- Glarum v. LaSalle Bank Nat'l Ass'n, 83 So.3d 780 (Fla. 4th DCA 2011) (affidavit relying on third-party data without knowledge of entry procedures is inadmissible hearsay)
- Hayes v. Wal-Mart Stores, Inc., 933 So.2d 124 (Fla. 4th DCA 2006) (standard of review for admissibility is abuse of discretion constrained by evidentiary rules)
- Chamberlain v. State, 881 So.2d 1087 (Fla. 2004) (preservation rule: specific grounds of objection must be raised at trial to be argued on appeal)