Munch v. DEPT. OF PRO. REGULATION

592 So. 2d 1136, 1992 WL 859
CourtDistrict Court of Appeal of Florida
DecidedJanuary 2, 1992
Docket90-3238
StatusPublished
Cited by8 cases

This text of 592 So. 2d 1136 (Munch v. DEPT. OF PRO. REGULATION) 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
Munch v. DEPT. OF PRO. REGULATION, 592 So. 2d 1136, 1992 WL 859 (Fla. Ct. App. 1992).

Opinion

592 So.2d 1136 (1992)

Donald J. MUNCH, Appellant,
v.
DEPARTMENT OF PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Appellee.

No. 90-3238.

District Court of Appeal of Florida, First District.

January 2, 1992.

*1137 Howard Hadley, Maitland, Geoffrey B. Dobson of Dobson & Christensen, P.A., St. Augustine, for appellant.

Janine B. Myrick, Dept. of Professional Regulation, Div. of Real Estate, Orlando, for appellee.

WEBSTER, Judge.

Appellant seeks review of a final order of the Florida Real Estate Commission ("Commission") which rejected certain of the hearing officer's findings of fact and conclusions of law, and the recommendation that the complaint be dismissed; and, instead, suspended appellant's broker's license for one year and imposed a $1,000.00 fine. Based upon the following analysis, we reverse and remand for further consideration by the Commission.

On December 11, 1989, the Department of Professional Regulation ("Department") filed a 2-count administrative complaint against appellant. The complaint involved appellant's activities as the principal in a condominium property management company, Four Seasons Properties. The relevant factual allegations of the complaint read as follows:

4. At all times material herein, [appellant] while licensed as a salesman in the employ of Active One Realty, Inc., represented himself as broker for Four Seasons Properties.
5. On or about December 13, 1987, Holly Munch f/k/a Holly C. Dibler, while employed by [appellant], and acting on behalf of [appellant], entered into a property management agreement with Associated Sand Dollar Condominium, Inc., as owner of certain residential properties, whereby it was represented that Four Seasons Properties, [sic] had agreed to manage Sand Dollar's properties... .
6. Pursuant to the aforementioned property management agreement, [appellant] was to receive rental deposits, manage the rental escrow account, distribute and disburse rental proceeds to the various unit owners, and return security deposits to various renters.
7. [Appellant], from December 13, 1987, through June 1, 1989, received a fee from Associated Sand Dollar Condominium, Inc. as manager and 17% commissions from various and numerous individual owners at the Sand Dollar Condominiums. In turn, [appellant] gave Associated Sand Dollar Condominium, Inc. 2% of that commission to help defray the costs of the Sand Dollar's condominium association.
8. On or about June 1, 1989, the business association between Associated Sand Dollar Condominium, Inc. and [appellant] d/b/a Four Season [sic] Properties was terminated.
9. Upon termination of the property management agreement, [appellant] claimed that Associated Sand Dollar Condominium, Inc. owed him $7,770.61, for services performed. [Appellant] withdrew funds from the security deposits and advance rents accounts prior to the termination of his employment and [appellant] has retained the funds for his own use and benefit all without the prior knowledge and consent of Associated Sand Dollar Condominium, Inc. .. .
10... . [Appellant] did not inform his then employing broker, John F. Cobb t/a Active One Realty, Inc., of the aforesaid property management agreement and related activities performed and [appellant] concealed from his employing broker the $7,770.61 in security deposits and advance rent fees received and retained by [appellant].
... .
12. From December 1987 through August 29, 1989, Four Season [sic] Properties did not have at least one broker to qualify as a real estate broker, but nonetheless *1138 [appellant] continued to engage in the real estate property management business and [appellant] has continued to hold himself out as properly licensed in the real estate brokerage business in Florida... .
13. On August 31, 1989, John F. Cobb t/a Active One Realty, Inc., terminated [appellant's] employment as a real estate salesman... .

Based upon these allegations, Count I accused appellant of "fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, culpable negligence or breach of trust in a business transaction," in violation of Section 475.25(1)(b), Florida Statutes; and Count II accused appellant of "having operated as a broker while licensed as a salesman or ... of having operated as a salesman for a person not registered as his employer," in violation of Sections 475.42(1)(b) and 475.25(1)(e), Florida Statutes.

Appellant filed an answer and a "Motion to Dismiss/Quash." The answer denied all of the material allegations of the complaint and, in addition, asserted as an affirmative defense that appellant possessed a valid state license as a "Community Association Manager," pursuant to which he was legally entitled to perform the acts which were the basis for the complaint. The "Motion to Dismiss/Quash" asserted that the Commission lacked jurisdiction over appellant and over the subject matter because the acts which were the basis for the complaint were governed by Part VIII of Chapter 468 ("Community Association Management"), rather than by Chapter 475 ("Real Estate Brokers, Salesmen, Schools, and Appraisers").

A formal hearing was held on June 27, 1990. At the commencement of the hearing, appellant's "Motion to Dismiss/Quash" was argued and denied. Also at the commencement of the hearing, appellant's counsel stated that appellant was relying on an "exemption" contained in Section 475.011(5), Florida Statutes, as well as upon the argument that the acts which were the basis for the complaint were governed by Part VIII of Chapter 468 and, therefore, could not be prosecuted as violations of Chapter 475.

Prior to October 1, 1988, Section 475.011(5), Florida Statutes, had read:

This chapter does not apply to:
... .
(5) Any person employed as, or acting in the capacity of, a manager of a condominium or cooperative apartment building as a result of any activities or duties which he may have in relation to the renting of individual units within such condominium or cooperative apartment if such manager is acting on behalf of a tenant owning or having an interest in no more than one unit within the condominium or cooperative apartment and if rentals arranged by him are for periods no greater than 1 year.

Effective October 1, 1988, Section 475.011(5) was amended to read:

This chapter does not apply to:
... .
(5) Any person employed for a salary as a manager of a condominium or cooperative apartment complex as a result of any activities or duties which he may have in relation to the renting of individual units within such condominium or cooperative apartment complex if rentals arranged by him are for periods no greater than 1 year.

Ch. 88-20, § 2, Laws of Fla. (emphasis added). Concluding that, prior to October 1, 1988, Section 475.011(5) "arguably" provided an "exemption" for appellant, the hearing officer ruled that the Department would be limited, in attempting to prove the allegations contained in its complaint, to events which occurred after October 1, 1988.[1]

The hearing officer heard the testimony of six witnesses, all of whom testified in person, thereby allowing the hearing officer *1139 to judge their demeanor and credibility.

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Cite This Page — Counsel Stack

Bluebook (online)
592 So. 2d 1136, 1992 WL 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munch-v-dept-of-pro-regulation-fladistctapp-1992.