Burleigh House Condominium, Inc. v. Buchwald

368 So. 2d 1316
CourtDistrict Court of Appeal of Florida
DecidedMarch 6, 1979
Docket78-1136
StatusPublished
Cited by17 cases

This text of 368 So. 2d 1316 (Burleigh House Condominium, Inc. v. Buchwald) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burleigh House Condominium, Inc. v. Buchwald, 368 So. 2d 1316 (Fla. Ct. App. 1979).

Opinion

368 So.2d 1316 (1979)

BURLEIGH HOUSE CONDOMINIUM, INC., a Florida Non-Profit Corporation, Appellant,
v.
Herbert BUCHWALD, Individually and As Trustee, Arlene Buchwald, Elliott Harris and Minerva Millis, Appellees.

No. 78-1136.

District Court of Appeal of Florida, Third District.

March 6, 1979.
Rehearing Denied April 18, 1979.

*1317 Joseph S. Paglino, Miami, for appellant.

Steel, Hector & Davis and Darrey A. Davis, Miami, for appellees.

Before HAVERFIELD, C.J., and PEARSON, J., and CHARLES CARROLL (Ret.), Associate Judge.

CHARLES CARROLL, Associate Judge.

In this action a summary judgment was entered for the defendants, on the grounds that the cause of action presented by the complaint was barred by the statute of limitations and was barred by estoppel by judgment and by res judicata. The plaintiff appealed. We hold entry of summary judgment for defendants was error, and reverse.

On April 15, 1977, Burleigh House Condominium, Inc., a condominium association, on behalf of itself and of its members as a class filed a complaint against Herbert Buchwald, individually and as trustee, Arlene Buchwald his wife, Elliott Harris and Minerva Millis. Therein it was alleged that Burleigh House, Inc., of which Buchwald was and is the president, developed the condominium, formed the plaintiff condominium association corporation, and while the developer owned the condominium association caused the latter to enter into a 99-year lease of community recreational facilities; that the lessors were Buchwald as trustee (under a declaration of trust of which defendants Harris and Millis are beneficiaries) and Buchwald's wife, Arlene Buchwald, who joined in execution of the lease. Under the lease, which contained a rent escalation clause, the rental was to be paid by the future owners of the condominium units, with the lessors having a lien on condominium units to secure the rent payments. In addition, the lease required the unit owners to pay the taxes, insurance premiums, utility charges, repairs and maintenance on the leased premises.

The complaint alleged the lease was unconscionable in that the rental provided for thereby was unreasonable and excessive, and that by dealing with themselves in the making of such lease the defendants breached their fiduciary relationship to the condominium unit purchasers, and by unjust enrichment obtained exorbitant personal gain. The complaint sought damages for such allegedly improper profits of lessors and sought appropriate relief in equity with respect to such lease on the ground of unconscionability thereof.

In Avila South Condominium Association, Inc. v. Kappa Corporation, 347 So.2d 599 (Fla. 1977), decided on March 31, 1977, prior to the date of the filing of this action, the Supreme Court of Florida held that in circumstances such as those alleged here a condominium association and condominium *1318 unit owners had a cause of action to recover such damages and for such "relief as equity dictates."

Thus, by Avila there was recognized and held to exist a cause of action which did not exist before that decision.[1] Ten years prior thereto it had been held that such a cause of action did not exist, in Fountainview Association, Inc. # 4 v. Bell, 203 So.2d 657 (Fla. 3d DCA 1967). In that case this court affirmed an order by which a complaint of a condominium association seeking relief similar to that sought in the present case had been dismissed on the ground that it did not state a cause of action. On consideration of that decision on petition for certiorari, following the District Court's certification of the decision as being one of great public interest, the Supreme Court discharged the writ of certiorari, upon holding that "the District Court of Appeal correctly decided the issue before it." See Fountainview Association, Inc. # 4 v. Bell, 214 So.2d 609 (Fla. 1968).

Likewise, it had been held that individual condominium unit owners had no such cause of action, in Wechsler v. Goldman, 214 So.2d 741 (Fla. 3d DCA 1968).[2]

The non-existence of such a cause of action, as so held in Fountainview in 1967 was recognized as the law in subsequent decisions prior to Avila, by the Supreme Court in Point East Management Corp. v. Point East One Condominium Corp., 282 So.2d 628 (Fla. 1973), cert. den. 417 U.S. 921, 94 S.Ct. 1421, 39 L.Ed.2d 476 (1974), and by the District Court of Appeal in Wechsler v. Goldman, supra, Plaza del Prado Condominium Association, Inc. v. GAC Properties, Inc., 295 So.2d 718 (Fla. 3d DCA 1974); Commodore Plaza at Century 21 Condominium Association, Inc. v. Saul J. Morgan Enterprises, Inc., 301 So.2d 783 (Fla. 3d DCA 1974).

In the instant case, by denying defendants' motion to dismiss, the trial court recognized that the complaint stated a cause of action. The holding of the trial court that such cause of action presented by the complaint, for damages and for relief against the lease contract on the ground of unconscionability, was barred by the (four-year) statute of limitations, was incorrect. The lease was executed in December of 1969, and the condominium units were sold by 1970 or 1971. The complaint was filed in April of 1977. However, the cause of action declared upon in this case did not accrue until the time of the Avila decision in March of 1977, and the date of that decision *1319 marked the commencement of the running of the statute of limitations. Therefore, this action, commenced within a month thereafter, was timely filed.

"A cause of action cannot be said to have accrued, within the meaning of that statute [of limitations], until an action can be instituted thereon." Berger v. Jackson, 156 Fla. 251, 23 So.2d 265 (1945).

In City of Miami Beach v. Brooks, 70 So.2d 306, 309 (Fla. 1954), with reference to the time of commencement of the running of a statute of limitations, the Supreme Court said "the statute attaches when there has been notice of an invasion of the legal right of the plaintiff or he has been put on notice of his right to a cause of action" (emphasis supplied); and further stated "so that the statute must be held to attach when the plaintiff was first put upon notice or had reason to believe that her right of action had accrued."

This principle of law that the time of commencement of the running of a statute of limitations may not antedate the time of the accrual of the cause of action, was applied and explained, in a situation similar to that which is involved here, in United States v. One 1961 Red Chevrolet Impala Sedan, 457 F.2d 1353, 1358 (5th Cir.1972). That case concerned an action by an owner of a motor vehicle to obtain the return of his vehicle which had been seized and forfeited by the government, under certain circumstances. For a period after such seizure and forfeiture of the vehicle which was longer than the applicable statute of limitations, the state of the law was such that the right of an owner to require restitution of a vehicle so seized and forfeited did not exist. However, two decisions rendered by the Supreme Court of the United States in 1968 established the right of an owner to obtain return of a vehicle which had been seized under such circumstances.

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