[1] |
DISTRICT
COURT OF APPEAL OF THE STATE OF FLORIDA FOURTH DISTRICT
January
Term 2011
|
[2] |
No. 4D09-5307, 4D10-1233 |
[3] |
2011.FL. 0002991 |
[4] |
June 29, 2011 |
[5] |
SAUL KLINOW AND EDYTHE B. KLINOW,
INDIVIDUALLY, AND AS PROPERTY OWNERS IN, AND MEMBERS OF ISLAND COURT AT
BOCA WEST PROPERTY OWNERS' ASSOCIATION, INC., A FLORIDA NONPROFIT
CORPORATION, APPELLANTS,
v.
ISLAND COURT AT BOCA WEST PROPERTY OWNERS' ASSOCIATION, INC., A FLORIDA
NONPROFIT CORPORATION, APPELLEE. |
[6] |
Consolidated
appeals from the Circuit Court for the Fifteenth Judicial Circuit, Palm
Beach County; Edward A. Garrison, Judge;
L.T.
Case Nos. 502008CA025287XXXXMB and 502008CA012002XXXXMB.
|
[7] |
Raoul G. Cantero, Douglas M. Halsey, Kerri L. McNulty
and David P. Draigh of White & Case Llp, Miami, and Fred W. Mattlin
and Joshua L. Zipper of Mattlin & Wyman, Pl, Boca Raton, for
appellants. Thomas E. Scott, Jr., Barry A. Postman and John S. Penton,
Jr., of Cole, Scott & Kissane, P.A., West Palm Beach, for appellee. |
[8] |
The opinion of the court was delivered by: Polen, J. |
[9] |
Appellants the Klinows appeal the trial court's final
order entering judgment for fees and costs in favor of appellee Island
Court at Boca West Property Owners' Association, Inc. ("Island
Court"). We find that the Homeowners' Association conducted a proper
special meeting of its members and successfully obtained a two-thirds
majority vote in favor of a proposed beautification project. Accordingly,
we affirm. |
[10] |
The Klinows purchased their home in Island Court on
September 21, 1987 and received a warranty deed stating that
"conveyance is subject to the . . . Declaration of Restrictions and
Protective Covenants for Island Court." Associations are governed by
chapter 720, Florida Statutes, XXX 1 and any
governing documents particular to the association, such as articles of
incorporation, bylaws, and declarations. Specifically, the Island Court
articles state that each owner is a member of the Boca West Maintenance
Association ("Association") and "becomes subject to the
terms and conditions of the Amended Declaration of Maintenance Covenants
for Boca West ("Declaration") dated April 18, 1974." The
Declaration provides that it may be further amended at any time upon a
two-thirds member vote. |
[11] |
A properly held special meeting took place on
December 13, 2007 to discuss a beautification project to replace driveways
and sidewalks on the individual lots at each unit owner's expense. The
proposal passed with two-thirds of the votes in favor of the project. At
its annual meeting, the Association sought to receive approval for some
clarifications to the language of the amendment. The amendment still
requested the authority to replace walkways and driveways, but also added
more language, including that which gave the Association sole discretion
to make those changes. The amendment undisputedly passed, again with at
least two-thirds vote. Both amendments were recorded on May 21, 2008. |
[12] |
In April of 2008, the Klinows filed a complaint
against the Association for temporary and permanent injunctive relief and
damages. The complaint alleged several counts, including substantive and
procedural defects to the amendments. The trial court dismissed the
complaint and referred the matter to mediation. The Klinows filed an
amended complaint when mediation efforts failed. The amended complaint
alleged six counts: declaratory judgment as to procedural violations
related to the special meeting; declaratory judgment as to procedural
violations of the written agreement at the annual meeting; permanent
mandatory injunctive relief declaring amendments void; misrepresentation
and fraud; breach of fiduciary duty against the Board of Directors; and
violation of section 720.303, Florida Statutes. After a complete trial,
the court entered a final judgment, finding for Island Court on all
counts. Island Court was thereby awarded attorney's fees and costs. This
appeal followed. |
[13] |
"The interpretation of a contract or a covenant
is a matter of law, and, therefore, reviewable by this court" using
the de novo standard of review. Argoff v. Rainberry Bay Homes Ass'n, 828
So. 2d 399, 401 (Fla. 4th DCA 2002); Royal Oak Landing Homeowner's Ass'n
v. Pelletier, 620 So. 2d 786, 788 (Fla. 4th DCA 1993). Aside from contract
interpretation, the trial court considered many factual issues below as
well. This court has provided that mixed questions of fact and law require
the application of two different standards of review. Powell v. State, 958
So. 2d 1012, 1013-14 (Fla. 4th DCA 2007). The factual findings must be
supported by competent, substantial evidence, while legal findings are
reviewed de novo. Id. |
[14] |
"In determining the enforceability of an
amendment to restrictive covenants, the test is one of
reasonableness." Holiday Pines Prop. Owners Ass'n v. Wetherington,
596 So. 2d 84, 87 (Fla. 4th DCA 1992). This court defined
"reasonable" as "not arbitrary, capricious, or in bad
faith." Hollywood Towers Condo. Ass'n v. Hampton, 40 So. 3d 784, 787
(Fla. 4th DCA 2010).XXX 2 In other words, as
we stated in Holiday Pines, the modification of restrictions cannot
"destroy the general plan of development." Holiday Pines, 596
So. 2d at 87 (citing Nelle v. Loch Haven Homeowners Ass'n, 413 So. 2d 28
(Fla. 1982)). Amendments which cause "the relationship of lot owners
to each other and the right of individual control over one's own
property" to be altered are unenforceable. Id. at 88. Such an
alteration is considered a "radical change of plans." Id. |
[15] |
The original Island Court Declaration allowed the
Association to paint, repair, replace and care for garage doors, fences,
and exterior building surfaces, other than front residence doors, windows,
screening, roofs, gutters, and down-spouts. A proposed amendment merely
sought to allow the Association to replace privately owned driveway and
walkway materials in addition to those tasks enumerated in the original
Declaration. The Association's beautification plan included a change of
the type of driveway whereby all driveways would conform to the same
specifications and would adhere to the general plan of uniformity in the
development, as promised. The Board received two-thirds approval by the
voting members to make such modifications. |
[16] |
This court has defined a radical change as a change
which would create an inconsistent scheme, or a deviation in benefit from
that of the grantee to that of the grantor. Flamingo Ranch Estates, Inc.
v. Sunshine Ranches Homeowners, Inc., 303 So. 2d 665, 666 (Fla. 4th DCA
1974). Here, the changes would mutually benefit the grantor and the
grantee. The benefit to the grantee is exemplified in a letter written to
the homeowners which provided that the proposed changes would result in a
more aesthetically pleasing community. The attempt to beautify and unify
Island Court would effectually upgrade the values of the property within
the community without fundamentally changing any homeowner's personal
property or community plans. Thus, there is no shift in benefit from the
grantee to grantor; therefore no radical change of plan would occur as to
make the changes unreasonable. |
[17] |
Additionally, the Klinows alleged there was a
procedural error during the vote to pass the amendment and argued that
"contingency votes" were improperly submitted. Island Court
rebutted the allegation with the fact that three voters merely changed
their minds after reconsidering the language of the amendment. The Klinows
argued that contingency votes are not allowed in the Association or under
Florida Statutes, so three votes in favor of the amendment which they
deemed "contingent" should be declared invalid. Without those
three votes, the two-thirds majority threshold would not have been met,
preventing the amendment from passing. However, this argument lacks merit
because a second vote was conducted shortly thereafter, encompassing the
same amendments as the original vote with more discretion being granted to
the Association. That second vote undisputedly passed with the necessary
number of votes. |
[18] |
The Klinows also contended that because no voting
certificates were used, all votes from owners of lots with multiple owners
should not count toward the passing of the amendment. However, the
Department of Business and Professional Regulation has concluded that: |
[19] |
Voting certificate requirements are allowable devices
to avoid confusion from possible conflicting votes from a single unit.
They will not be rigidly enforced to interfere with the statutory right to
vote of recognized owners of condominium units, unless the association
demonstrates good cause to do so. When an association has not consistently
enforced provisions requiring voting certificates, failure to comply with
technical requirements of such provisions will not be accepted as grounds
to reject votes of unit owners of the condominium. |
[20] |
Caribbean Gardens Condo. Ass'n v. Unit Owners Voting
for Recall, No. 2007-05-3419, 2007 WL 6609169 (Fla. DBPR Arb. Oct. 24,
2007) (emphasis added). |
[21] |
The Klinows' position was that because Mr. Klinow was
able to produce a voting certificate from a past vote that the Association
failed to comply with its own requirements. To the contrary, unless the
voting certificates were used regularly and always, a vote will not be
disenfranchised in the absence of a certificate. The proof of one past
voting certificate does not show use either regularly or always and,
instead, only shows certificates have been used at least once before. |
[22] |
There was evidence in the record to support a finding
that the amendment to the Declaration which is at issue in this case was
reasonable and beneficial to the owners of the Island Court property
homes. Further, the Homeowners' Association conducted a proper special
meeting of its members and successfully obtained a two-thirds majority
vote in favor of the proposed beautification project. Accordingly, we
affirm the decision of the lower court. |
[23] |
Affirmed. |
[24] |
WARNER and LEVINE,JJ., concur. |
[25] |
Not final until disposition of timely filed motion
for rehearing. |
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Opinion Footnotes |
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[26] |
XXX 1 Chapter 720 of the
Florida Statutes is meant "to provide procedures for operating
homeowners' associations, and to protect the rights of association members
without unduly impairing the ability of such associations to perform their
functions." § 720.302(1), Fla. Stat. (2010). The voting rights of
Florida homeowners' associations are found under section 720.306(1)(b),
which states that "[u]nless otherwise provided in the governing
documents or required by law . . . any governing document of an
association may be amended by the affirmative vote of two-thirds of the
voting interests of the association." § 720.306(1)(b), Fla. Stat.
(2010). |
[27] |
XXX 2 Holiday Pines and
Hollywood Towers pertain to condominium associations, but the cases are
instructive in determining whether Island Court's Association acted
reasonably. |
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