In Re Bayshore Yacht & Tennis Club Condominium Ass'n

336 B.R. 866, 19 Fla. L. Weekly Fed. B 122, 2006 Bankr. LEXIS 92
CourtUnited States Bankruptcy Court, S.D. Florida.
DecidedJanuary 12, 2006
Docket18-24395
StatusPublished
Cited by1 cases

This text of 336 B.R. 866 (In Re Bayshore Yacht & Tennis Club Condominium Ass'n) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Florida. primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Bayshore Yacht & Tennis Club Condominium Ass'n, 336 B.R. 866, 19 Fla. L. Weekly Fed. B 122, 2006 Bankr. LEXIS 92 (Fla. 2006).

Opinion

ORDER GRANTING DEBTOR’S MOTION FOR SUMMARY JUDGMENT; DENYING COLETTA’S CROSS MOTION FOR SUMMARY JUDGMENT AND DISALLOWING CLAIM #20

ROBERTA. MARK, Chief Judge.

The Court conducted a hearing on December 21, 2005, on cross motions for summary judgment on Debtor Bayshore Yacht & Tennis Club Condominium Association’s (“Bayshore” or “Debtor”) objection to Proof of Claim #20 filed by Creditor A1 Coletta (“Coletta”). Specifically, on November 15, 2005, Debtor filed its Motion for Final Summary Judgment as to Proof of Claim # 20 (“Motion for Summary Judgment”)(CP # 151). On November 22, 2005, Coletta filed his Response and Cross Motion for Summary Judgment (“Response and Cross Motion”)(CP # 174). Debtor subsequently filed its Reply to A1 Coletta’s Response in Opposition to Bay-shore’s Motion for Summary Judgment on Claim # 20 and Response to Coletta’s Cross Motion for Summary Judgment (“Reply”)(CP # 216). Upon reviewing the record, including the legal memoranda, and after considering the arguments of counsel and relevant case law, the Court finds it appropriate to grant Debtor’s Motion for Summary Judgment and deny Co-letta’s Cross Motion. As such, Coletta Claim # 20 is disallowed.

Factual and Procedural Background

Although the history between the parties is tortured, and certain facts are in *868 dispute, the relevant facts necessary to address this claim are undisputed. Bay-shore Yacht & Tennis Club is a condominium building located in North Bay Village, Florida. The Debtor was created pursuant to a Declaration of Condominium, attached as Exhibit “1” to the Response and Cross Motion. The Declaration of Condominium was recorded on June 16, 1978. In 1981, Coletta purchased three units (“Penthouse Units”) at the Debtor’s premises. 1 The Penthouse Units were located on the eleventh floor of the building. 2 At the time of purchase, elevator service within the building ceased at the tenth floor. Access to the Penthouse Units was, and still is, by way of a stairway from the tenth floor. It is undisputed that at the time of purchase, Coletta knew that the elevator did not go up to the Penthouse Units.

Upon purchasing the Penthouse Units, Coletta attempted to convince the Debtor to provide elevator access to the eleventh floor. According to Coletta, on numerous occasions the Debtor committed to providing elevator access to the eleventh floor at no expense to Coletta. Deposition of A1 Coletta at 18, 21, attached as Exhibit “6” to the Response and Cross Motion. However, no action was ever taken on this alleged commitment, purportedly because Bayshore lacked sufficient funds. Dep. Coletta at 17; Affidavit of Patrick Bilo-deau ¶ 3, attached as Exhibit “9” to the Response and Cross Motion. Conversely, Debtor maintains that it never promised to pay for any elevator extension. Board Meeting Minutes of July 5, 2002, attached as Exhibit “3” to the Response and Cross Motion. As discussed below, this factual dispute over what Bayshore’s board promised Coletta is not a factual issue precluding entry of summary judgment.

Over the years, the relationship between the parties deteriorated. 3 In connection with his dissatisfaction with the Debtor and members of its board of directors, Coletta, on February 15, 2001, filed a lawsuit in the Circuit Court of Florida against Bayshore, styled as Al Coletta v. Bayshore Yacht & Tennis Club Condominium Association, Inc., et al., Case No.: 01-03879CA(01)(“State Court Case”). In his Third Amended Complaint, Coletta sought injunctive and declaratory relief (Counts I and III respectively) and damages (Count II) against the Debtor in connection with its alleged failure to provide elevator access to the Penthouse Units. In support of these claims, Coletta alleged that (1) Debtor and members of its board promised to provide elevator access to the Penthouse Units at no charge to Coletta; (2) to provide such elevator access would not require material alterations to the common elements; (3) such alterations were required pursuant to the Declaration of Condominium, the Americans with Disabilities Act (“ADA”) and the Florida Americans with Disabilities Act (“FADA”) and (4) because the Debtor had not provided such elevator access, Coletta suffered damages.

*869 On April 4, 2005, Bayshore filed its Chapter 11 petition. Amongst other claims, Coletta timely filed his Proof of Claim #20 which referenced the State Court Case. Coletta subsequently sought stay relief, seeking to continue the State Court Case rather than litigating Claim #20 in this Court. The requested relief was denied by Order dated October 31, 2005, and instead, this Court ruled that Claim #20 would be resolved in connection with other contested matters arising from the Debtor’s objections to Coletta’s various proofs of claim.

While the bankruptcy was ongoing, the Debtor informed unit owners that it needed to raise $1,500,000 through a special assessment. Part of this assessment included $250,000 to modernize and replace the elevator system within the building. Board Letter to Unit Owners, attached as Exhibit “5” to the Response and Cross Motion. The proposed elevator project subject of the assessment does not include extending elevator service to the Penthouse Units.

Summary of the Arguments

Debtor’s primary arguments are (1) Bayshore has no contractual obligation to extend the elevator at its expense; (2) extending the elevator is not a maintenance obligation; (3) extending the elevator is a material alteration requiring seventy-five percent approval from the unit owners; and (4) even if the alteration is not material and board approval is sufficient, the Declaration of Condominium requires Coletta to pay for the improvement.

Coletta argues that (1) extension of the elevator is a maintenance obligation; (2) if it is an alteration, it is not a material alteration and therefore, board approval is sufficient; and (3) he is not obligated to pay for the improvement because Bay-shore agreed to pay and since, under the relevant section of the Declaration of Condominium, the Penthouse Units would not be the substantially exclusive beneficiary if the elevator was extended.

After a review of the legal memoranda and the exhibits attached thereto, the Court finds that there is no genuine issue of material fact that is in dispute. Extension of the elevator service would not constitute maintenance of the common elements. Moreover, pursuant to the Declaration of Condominium, Bayshore is not obligated to pay for any extension of the elevator. Thus, Coletta is not entitled to any relief on his claim.

Discussion

Summary judgment is appropriate when the “pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c).

Summary judgment is not properly viewed as a device that the trial court may, in its discretion, implement in lieu of a trial on the merits.

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Bluebook (online)
336 B.R. 866, 19 Fla. L. Weekly Fed. B 122, 2006 Bankr. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-bayshore-yacht-tennis-club-condominium-assn-flsb-2006.