MacKenzie v. Centex Homes Ex Rel. Centex Real Estate Corp.

208 So. 3d 790, 2016 Fla. App. LEXIS 18789
CourtDistrict Court of Appeal of Florida
DecidedDecember 22, 2016
DocketCase 5D16-1254
StatusPublished
Cited by6 cases

This text of 208 So. 3d 790 (MacKenzie v. Centex Homes Ex Rel. Centex Real Estate Corp.) 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
MacKenzie v. Centex Homes Ex Rel. Centex Real Estate Corp., 208 So. 3d 790, 2016 Fla. App. LEXIS 18789 (Fla. Ct. App. 2016).

Opinion

COHEN, J.

Sara and Ralph MacKenzie appeal summary final judgment entered in favor of Centex Homes, et al. (“Centex”) and the Board of the Sullivan Ranch Homeowners’ Association (“the board” or “the HOA”) on Count II of their complaint. The Mac-Kenzies seek a declaration that Centex failed to meet its obligation to make capital contributions to the HOA’s reserve ac *792 counts when it controlled the HOA 1 along with $993,988 in resulting damages. The lower court entered summary final judgment in favor of Centex after it found that section 720.308(l)(b), Florida Statutes (2015), excused Centex from funding the reserve while it funded the deficit in the HOA’s current operating expenses. We disagree with the court’s interpretations of section 720.308 and find that section 720.303(6), Florida Statutes (2015), required Centex to continue funding the reserve accounts once they were established. We reverse the court’s entry of summary final judgment and remand for further proceedings. 2

The MacKenzies have lived in Sullivan Ranch since 2007. Sullivan Ranch consists of 692 residential lots divided into two sub-associations. The MacKenzies own a lot in the second sub-association, a fifty-five and older community. The lots in Sullivan Ranch are governed by the “declaration of covenants, conditions, and restrictions” and the second amendment (“the declaration”), which were drafted by Centex. Cen-tex was the developer of Sullivan Ranch and appointed the members of the board until December 2015 when the Board was turned over to the homeowners.

The MacKenzies filed the operative complaint, their fifth amended complaint, in April 2015 while the HOA was still controlled by Centex. They alleged three counts but only appeal summary judgment as to Count II. Count II alleged that Cen-tex failed to make capital contributions to the HOA’s reserve accounts as required by sections 8.2 and 8.6(b) of the declaration and subsections 720.303(6)(b),(d) and (f) of the Florida Statutes.

Centex contributed an initial $32,300 to the reserve funds in 2007. Centex later stopped contributing to the reserve funds although it continued to include a line item for reserve funds in the budget and collected reserve funds on the non-developer owned properties. Centex opted to pay Sullivan Ranch’s operating expenses in lieu of making any contributions to the reserve accounts and claimed that it had made no guarantee about funding the reserves. The MacKenzies allege the HOA is due approximately $993,988, and they seek a declaration that Centex was obligated to make capital contributions during the time it controlled the HOA.

Centex argues that the Mac-Kenzies lack standing to pursue their claim and that the lower court lacked jurisdiction over the action because the Mac-Kenzies had not met the requirements for seeking a declaratory judgment under section 86.011, Florida Statutes (2015). Centex has not filed a cross appeal; therefore, this Court has no jurisdiction over the standing issue. See Philip J. Padovano, Florida Appellate Practice § 23:9 at 483 (2011) (“In the absence of a cross appeal, the appellee may only defend the order of the lower court and may not seek affirmative relief from any part of the order.”). A cross appeal is the proper method to seek review of an earlier non-final order when the final *793 order is entirely favorable to the appellee. See Fla. R. App. P. 9.130(g),(h); Allen v. TIC Participations Tr., 722 So.2d 260, 261 (Fla. 4th DCA 1998) (denying motion to dismiss cross appeal). 3

Regardless of a cross appeal, this Court has an independent obligation to ensure jurisdiction was proper. See Shannon v. Cheney Bros., Inc., 167 So.3d 397, 399 (Fla. 1st DCA 2015). Circuit courts have jurisdiction to “render declaratory judgments on the existence, or nonexistence: [ ] [o]f any immunity, power, privilege, or right ...,”§ 86.011, Fla. Stat. To obtain a declaratory judgment “the plaintiff must show a bona fide, actual, present, and practical need for the declaration.” Wilson v. Cty. of Orange, 881 So.2d 625, 631 (Fla. 5th DCA 2004) (quoting X Corp. v. Y Person, 622 So.2d 1098, 1101 (Fla. 2d DCA 1993)).

Section 720.305, Florida Statutes (2015), provides any member of an HOA with the right to bring an action against the HOA or another member to “redress alleged failure or refusal to comply with [the HOA statutory provisions].” The declaration provides every property owner with a similar right. Centex argues that the MacKenzies have no right to a declaratory judgment as to the reserve funds because any recovery of such funds would flow to the reserve accounts of the HOA and not to the MacKenizes. Yet any increase in the reserve funds will make it less likely that special assessments will be required in the future — special assessments that would come directly from the MacKenzies and their heirs or assigns. Thus, we And the MacKenzies have a statutory and contractual right to enforce the declaration and a bona fide interest in the account. Jurisdiction is appropriate.

This Court reviews motions for summary final judgment de novo. Volusia Cty. v. Aberdeen at Ormond Beach, L.P., 760 So.2d 126, 130 (Fla. 2000). Summary final judgment is required where the pleadings and summary judgment evidence demonstrate that 1) there is no genuine issue of material fact, and that 2) the moving party is entitled to judgment as a matter of law. Fla. R. Civ. P. 1.510(c). Issues of contract and statutory interpretation are reviewed de novo as they raise questions of law. See, e.g., State v. Daniels, 158 So.3d 629, 630 (Fla. 5th DCA 2014); Heylin v. Gulfstream Prop. & Cas. Ins. Co., 147 So.3d 659, 661 (Fla. 5th DCA 2014). When a statute is susceptible to only one reasonable interpretation, the plain language of the statute controls. Fla. Dep’t of Highway Safety & Motor Vehicles v. Hernandez, 74 So.3d 1070, 1074 (Fla. 5th DCA 2011). Only where the plain language of a statute is ambiguous — where a reasonable person could find two different meanings leading to two different outcomes — will this Court resort to the tools of statutory construction. Fla. Dep’t of Transp. v. Clipper Bay Invs., LLC, 160 So.3d 858, 862 (Fla. 2015).

The Homeowners’ Association Act, which governs this action, “provide[s] procedures for operating homeowners’ associations, and [ ] protects] the rights of association members without unduly impairing the ability of such associations to perform their functions.” § 720.302(1), Fla. Stat. (2015). Centex argues that section 720.308(l)(b) excused it from funding the HOA’s reserve accounts. Section 720.308(l)(b) provides a developer the *794 right to avoid paying its share of “operating expenses and assessments” on the lots the developer controls when it controls the board and elects to fund the difference between the assessments received from the lot owners and the “operating expenses incurred that exceed the assessments receivable.” § 720.308(l)(b), Fla. Stat. This is referred to as “deficit funding.” See In re Majorca Isles Master Ass’n, Inc., No. 12-19056-BKC-AJC, 560 B.R. 824, 838-39, 2016 WL 6157437 at *10 (Bankr. S.D. Fla. Oct. 21, 2016). Centex argues that by deficit funding the HOA, it was excused from any obligation to fund the reserve accounts.

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

Related

Iezzi Family Limited Partnership v. Edgewater Beach Owners Association, etc.
254 So. 3d 584 (District Court of Appeal of Florida, 2018)
Deutsche Bank v. Green
253 So. 3d 682 (District Court of Appeal of Florida, 2018)
State v. Anderson
215 So. 3d 181 (District Court of Appeal of Florida, 2017)
State v. Isaac L. Anderson, Jr.
215 So. 3d 181 (District Court of Appeal of Florida, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
208 So. 3d 790, 2016 Fla. App. LEXIS 18789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackenzie-v-centex-homes-ex-rel-centex-real-estate-corp-fladistctapp-2016.