Klak v. EAGLES'RESERVE HOMEOWNERS'ASS'N

862 So. 2d 947, 2004 WL 66745
CourtDistrict Court of Appeal of Florida
DecidedJanuary 16, 2004
Docket2D01-4727
StatusPublished

This text of 862 So. 2d 947 (Klak v. EAGLES'RESERVE HOMEOWNERS'ASS'N) 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
Klak v. EAGLES'RESERVE HOMEOWNERS'ASS'N, 862 So. 2d 947, 2004 WL 66745 (Fla. Ct. App. 2004).

Opinion

862 So.2d 947 (2004)

Andrea M. KLAK and Kenneth P. Klak, wife and husband; Warren L. Garland and Dorothea T. Garland, husband and wife; Jack B. Slorah and Patricia M. Slorah, husband and wife; James R. Cobb and Gloria S. Cobb, husband and wife; Thomas J. Ciriello, Susan Light, Hans Walter Selig, and Anastasia R. Seelig, co-trustees; David P. Kennedy and Susan M. Kennedy, husband and wife; Bruno Gallelli and Maria Gallelli, husband and wife; Carl Conrad; John S. Havill; Dr. Laz N. Kavouklis and Maria M. Kavouklis, husband and wife; Charles E. Mainard and Patricia J. Mainard, husband and wife; Gail M. Fern, as trustee of the Gail M. Fern trust; Julia Ann Roberts; Kevin K. Moran; Frances T. Achnitz and William P. Achnitz, wife and husband; K.M. Taylor; John T. Wehlau and Cheryl Lynne Wehlau, husband and wife; Robert J. Hildenbrand and Lan Hildenbrand, husband and wife; Harry W. James, Jr., and Fran James, husband and wife; Vincent A. Tuccio and Carolyn M. Tuccio, husband and wife; Glenn B. Shane and Lara G. Shane, husband and wife; Kimberly D. Campbell; James P. Delellis and Ruth Delellis, husband and wife; Theodore Maslo and Cynthia Maslo, husband and wife; John Hummell; James N. Dishman, Jr., and Joyce A. Dishman, husband and wife; Thomas R. Vrecenak; Charles C. Richards and Sharon P. Richards, husband and wife; Judith Ann McDermot; Ronald E. Miller; Elizabeth Fryer; Edward Stuhl and Joan Stuhl, husband and wife; Sam Sahagian and Jo Ann Sahagian, husband and wife; Joseph Dwyer and Sharon A. Dwyer, husband and wife; Charles J. Preston; Stephen Gayle; Diane Jude; Gerard P. Benatar; Brady *948 M. Shirley and Margie R. Shirley, husband and wife; Fred B. Leiner; Robert P. Kelly and Anna R. Kelly, husband and wife; Noel S. Tenebaum; Lucille Laprade; Walter S. Ksocomb and Cynthia C. Ksocomb, husband and wife; Cynthia L. Evans; Gregory R. Henderson and Vicky Hendeson, husband and wife; Bernard L. Mayzell and Nataliew Mayzell, husband and wife; Ted W. Walters; Harold Kogut and Deanna Kogut, husband and wife; Sidney P. Cooper and Susie Cooper, husband and wife; Gerry R. Cline and Susan T. Cline, husband and wife; Jack Peterson and Suzie Peterson, husband and wife; David Larson and Delyn Larson, husband and wife; George Nowak; Maria Depeirn; George M. Sonnett and Elizabeth E. Sonnett, husband and wife; Fernando L. Arroyo; B.S. Safley; R. Enid Gaud; Warren Scherer and Nancy Scherer, husband and wife; Richard G. Ingher; and Gerald W. Conrad and Bonita A. Conrad, husband and wife, Appellants,
v.
EAGLES' RESERVE HOMEOWNERS' ASSOCIATION, INC., a/k/a Nature's Watch, a Florida not for profit corporation, Appellee.

No. 2D01-4727.

District Court of Appeal of Florida, Second District.

January 16, 2004.

*949 C. Philip Campbell, Kevin H. Graham, and Mark A. Connoll of Shumaker, Loop & Kendrick, LLP, Tampa, for Appellants.

Gail M. Fern, pro se.

James R. Cobb, pro se.

No Appearance for Appellee.

Henry A. Stein and Phyllis J. Towzey of Stein & Towzey, L.L.P., St. Petersburg, for Amicus Curiae Berger Parties.

CANADY, Judge.

A group of aggrieved homeowners appeals a final declaratory judgment determining that their homeowners' association is liable for the cost of reconstructing defective walls of dwelling units. Because we conclude that the governing declaration of covenants and restrictions does not impose such liability on the homeowners' association, we reverse the declaratory judgment.

I. BACKGROUND

Kenneth P. Klak and Andrea M. Klak, along with ninety-seven other owners (the Klak group) of units in the Eagles' Reserve community, filed an action (the Klak suit) seeking declaratory relief against the Eagles' Reserve Homeowners' Association, Inc. (the association). Eagles' Reserve is a community compound of townhouses and villas in which each dwelling unit and the land on which it is located is in fee simple ownership. Eagles' Reserve thus is not a condominium.

The conflict between the Klak group and the association arose from the association's decision to undertake the repair and substantial reconstruction of certain dwelling *950 units that were affected by serious construction defects. The Klak group contended that the governing declaration of covenants and restrictions (the declaration) did not authorize the association to undertake the reconstruction project. In its complaint, as amended, the Klak group sought: (1) a judicial declaration concerning the association's duties and responsibilities with respect to the construction defects; (2) relief for breach of fiduciary duty by the association; and (3) an accounting by the association. It appears that the position of the Klak group was related, at least in part, to its concern that the association's assumption of responsibility for the repairs and reconstruction would adversely affect the ability of individual homeowners to pursue insurance claims for the damages to their units. The Klak group posits a scenario in which individual homeowners would be unable to collect under their homeowner's insurance but would bear the economic burden of the repairs and reconstruction through maintenance assessments imposed by the association.

After the filing of the Klak suit, Harold Berger, as trustee of the estate of Fred Berger, deceased, and a group of other Eagles' Reserve homeowners (the Berger group) filed suit (the Berger litigation) against the association seeking dissolution of the association and the appointment of a receiver or custodian for the association. While the Klak group claimed that the reconstruction project undertaken by the association was unauthorized, the Berger group contended that the association had failed to pursue the reconstruction project with sufficient diligence. The Klak group intervened in the Berger litigation. Although the Klak suit and the Berger litigation were never formally consolidated, the same judge ultimately presided over both proceedings and dealt with the claims in the two actions as though they had been consolidated.

Prior to the entry of the final declaratory judgment that is now under review, the trial court considered the Berger group's motion for appointment of a receiver or custodian. A hearing on the motion was conducted on June 12, 2001. On July 11, 2001, the trial court entered an order on motion for appointment of receiver. In that order, the trial court determined that the association had the obligation under the declaration to repair and reconstruct the exterior walls of the dwelling units "from the interior coat of paint to the outside of the buildings." The court withheld ruling on the request for the appointment of a receiver but maintained its jurisdiction "to appoint a Receiver if the Court finds the Board of Trustees is recalcitrant in carrying out the Association's obligations pursuant to the Court's rulings described herein."

Thereafter, on October 9, 2001, the trial court entered an order appointing a receiver/custodian. The trial court determined that the Berger group had

presented a prima facie case that the... board of directors [was] engaging in waste and misapplication of corporate assets by its refusal to proceed with collections of accounts receivable and with repairs and maintenance to the exterior of the dwelling units as required by the applicable Declaration, The Articles of Incorporation[,] and the requirements of Florida law.

The court ordered the receiver to complete specified repairs to certain structures and authorized additional repairs to certain other structures.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

University of Texas v. Camenisch
451 U.S. 390 (Supreme Court, 1981)
Schechtman v. Grobbel
226 So. 2d 1 (District Court of Appeal of Florida, 1969)
Kaplan v. Bayer
782 So. 2d 417 (District Court of Appeal of Florida, 2001)
Arch Se Communications v. Abraham Comm.
702 So. 2d 556 (District Court of Appeal of Florida, 1997)
Ladner v. PLAZA DEL PRADO, ETC.
423 So. 2d 927 (District Court of Appeal of Florida, 1982)
Florida Dept. of Transp. v. Juliano
801 So. 2d 101 (Supreme Court of Florida, 2001)
Beans v. Chohonis
740 So. 2d 65 (District Court of Appeal of Florida, 1999)
Belair v. City of Treasure Island
611 So. 2d 1285 (District Court of Appeal of Florida, 1992)
INTERFIRST FEDERAL SAV. BANK v. Burke
672 So. 2d 90 (District Court of Appeal of Florida, 1996)
Donnell v. Industrial Fire and Casualty Co.
378 So. 2d 1344 (District Court of Appeal of Florida, 1980)
Thoman v. Ashley
170 So. 2d 332 (District Court of Appeal of Florida, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
862 So. 2d 947, 2004 WL 66745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klak-v-eaglesreserve-homeownersassn-fladistctapp-2004.