Hunters Run Property Owners Association, Inc. v. Centerline Real Estate, LLC

CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 30, 2023
Docket20-11800
StatusUnpublished

This text of Hunters Run Property Owners Association, Inc. v. Centerline Real Estate, LLC (Hunters Run Property Owners Association, Inc. v. Centerline Real Estate, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunters Run Property Owners Association, Inc. v. Centerline Real Estate, LLC, (11th Cir. 2023).

Opinion

USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 1 of 22

[DO NOT PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 20-11800 ____________________

HUNTERS RUN PROPERTY OWNERS ASSOCIATION, INC., a Florida Not for Profit Corporation, Plaintiff-Counter Defendant-Appellee, versus CENTERLINE REAL ESTATE, LLC, Defendant-Counter Claimant-Third Party Plaintiff-Appellant, STRATFORD AT HUNTERS RUN CONDOMINIUM ASSOCIATION, INC., Third Party Defendant.

____________________ USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 2 of 22

2 Opinion of the Court 20-11800

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 9:18-cv-80407-BER ____________________

Before ROSENBAUM and LUCK, Circuit Judges. * LUCK, Circuit Judge: Centerline Real Estate, LLC, appeals the district court’s judgment, following a bench trial, for Hunters Run Property Own- ers Association, Inc., on the association’s contract and statutory claims for unpaid fees and declaratory relief relating to Centerline’s mandatory membership in the community country club. Center- line argues that (1) it was prejudiced by the district court’s damages award because the association had previously said it wasn’t seeking monetary damages; (2) there was insufficient evidence to support the amount of monetary damages; and (3) the condo declaration didn’t allow the association to hold Centerline personally liable for the unpaid fees. We affirm.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY The Hunters Run Property Owners Association is the home- owners’ association for Hunters Run, a Boynton Beach housing de- velopment, and it operates under the Florida Homeowners’

* This opinion is being entered by a quorum pursuant to 28 U.S.C. § 46(d). USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 3 of 22

20-11800 Opinion of the Court 3

Association Act. See Fla. Stat. § 720.301 et seq. The properties in the community are subject to a recorded declaration of “Cove- nants, Restrictions[,] and Easements.” A 1999 amendment to the declaration requires all new property owners to become members of the community country club. A series of bylaws further sets forth the relationship between the association and its members. Centerline purchased four units in Hunters Run in the sum- mer of 2017. After Centerline bought its units, the association sent it a membership packet informing Centerline that the declaration required it to purchase four country club memberships that to- gether cost roughly $280,000. Centerline objected and refused to purchase memberships or pay membership fees. In 2018, the association filed a one-count complaint in Flor- ida state court, pursuant to the declaration and Florida Statute sec- tion 720.305. 1 It alleged that Centerline had breached the declara- tion and sought an injunction requiring Centerline to (1) comply

1 This section provides:

Each member and the member’s tenants, guests, and invitees, and each association, are governed by, and must comply with, this chapter, the governing documents of the community, and the rules of the association. Actions at law or in equity, or both, to redress alleged failure or refusal to comply with these provisions may be brought by the association or by any mem- ber against . . . [a] member . . . .

Fla. Stat. § 720.305(1)(b). USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 4 of 22

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with the declaration, (2) apply for country club membership and pay the club fees for each property it owned, and (3) maintain club membership in good standing. Centerline removed the case to fed- eral court and asserted several counterclaims for damages and de- claratory relief. A. Pretrial Motions

After discovery ended, both parties moved for summary judgment. Centerline argued it (1) wasn’t required to apply for country club membership and (2) couldn’t be contractually re- quired to “pay the requisite fees” because the declaration didn’t al- low the association to hold property owners personally liable for unpaid fees. Centerline mainly relied on article VII, section 2 of the declaration, which provided “that no [o]wner . . . shall have any personal liability under or in connection with th[e] [d]eclaration” and limited owners’ liability under the declaration to their property interests in Hunters Run. The association responded that the declaration was enforce- able and required Centerline to become a country club member. The association contended that whether Centerline could be per- sonally liable under the declaration was unripe because it was “not seeking monetary relief” at that time. The district court denied Centerline’s summary judgment motion entirely and granted summary judgment in part to the as- sociation as to Centerline’s counterclaim for a declaratory judg- ment voiding the declaration’s country club membership USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 5 of 22

20-11800 Opinion of the Court 5

requirement. The district court concluded that “[c]lub member- ship [was] appurtenant to holding title to a residential unit in Hunt- ers Run,” so, “[b]y operation of [the declaration and bylaws], Cen- terline [was] already a ‘member of [the] Count[r]y Club.’” The dis- trict court also concluded that the declaration allowed the associa- tion to hold Centerline personally liable for unpaid fees because the declaration’s protection against owners’ personal liability didn’t ap- ply to actions brought by the association. After the district court ruled on the cross-motions for sum- mary judgment, the association moved for a declaratory judgment under Federal Rule of Civil Procedure 54(c). It asked for a declara- tion that the membership requirement was enforceable against Centerline, “in addition to a permanent injunction or a money judgment for damages.” Centerline opposed the motion, arguing that it would be prejudiced by a declaratory judgment because the request was made “on the eve of trial” after the association only requested injunctive relief in the complaint. But the district court ruled that because the association had brought a claim under Flor- ida Statute section 720.305, it could seek at trial any remedy per- mitted under the statute—including declaratory relief. B. Bench Trial

Two days before the bench trial, the parties filed a joint stip- ulation that said the association sought approximately $500,000 in various damages related to Centerline’s country club member- ships. The damages calculation included membership fees, USCA11 Case: 20-11800 Document: 40-1 Date Filed: 03/30/2023 Page: 6 of 22

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maintenance fees, various assessments, late fees, and interest for all of Centerline’s properties. In its trial brief, Centerline argued it was “unfairly prejudiced” by the association’s damages request because its trial preparation had been focused only on the injunctive relief the association had sought in its complaint.

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Hunters Run Property Owners Association, Inc. v. Centerline Real Estate, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunters-run-property-owners-association-inc-v-centerline-real-estate-ca11-2023.