Sabal Chase Homeowners v. Disney World

726 So. 2d 796, 1999 WL 9784
CourtDistrict Court of Appeal of Florida
DecidedJanuary 13, 1999
Docket97-2475
StatusPublished
Cited by6 cases

This text of 726 So. 2d 796 (Sabal Chase Homeowners v. Disney World) 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
Sabal Chase Homeowners v. Disney World, 726 So. 2d 796, 1999 WL 9784 (Fla. Ct. App. 1999).

Opinion

726 So.2d 796 (1999)

SABAL CHASE HOMEOWNERS ASS'N INC., Sabal Chase Townhomes, Inc., Sabal Chase Condominium I Ass'n, Inc., and Sabal Chase Condominium II Ass'n, Inc., f/u/b/o American Reliance Ins. Co., Appellants,
v.
WALT DISNEY WORLD CO., d/b/a ARDC Corporation f/k/a Arvida Corporation, The Walt Disney Co., Arvida/JMB Partners, Ltd., Sanford B. Miot, Mehmet Y. Ilter, BKM East, Inc., and Ibbid Investments of Florida, Westley Co., John Hannan, Associates Construction Co., and Ramon J. Barcia, Appellees.

No. 97-2475

District Court of Appeal of Florida, Third District.

January 13, 1999.
Rehearing and Certification of Question Denied March 24, 1999.

*797 Adorno & Zeder, Miami, and Raoul G. Cantero, III, Coconut Grove, and Jonathan Colan, Miami, for appellants.

Burd Downs & Magathan, and Madelyn Simon Lozano, Miami, for appellee, ARDC Corporation.

Ross & Tilghman, and Lauri Waldman Ross, Miami, for appellee, Sanford B. Miot.

Cole White & Billbrough, and Geoffrey B. Marks, Miami, for appellees, Ibbid Investment Properties of Florida, Inc., BKM East, Inc., and Mehmet Y. Ilter.

Before JORGENSON, COPE and GERSTEN, JJ.

PER CURIAM.

The issue in this case is whether the 15 year statute of repose for actions involving property construction applies to bar the appellants homeowners' associations' and insurer's complaint. We affirm finding the trial court correctly entered summary judgment in favor of the appellees because the statute of repose in Section 95.11(3)(c), Florida Statutes (1995), barred the cause of action.

Appellee Arvida Corporation ("Arvida") was the owner and developer of the Sabal Chase community of condominium homes and town homes. Construction on the condominiums began in 1973 and was completed on September 6, 1978, when the last certificate of occupancy was issued. Appellant American Reliance Insurance Co. ("insurer/subrogee"), insured the common areas of the community and also issued policies to appellants Sabal Chase Homeowners' Associations, Inc. ("Associations").

After hurricane Andrew severely damaged Sabal Chase in 1992, the insurer/subrogee paid nearly $4.5 million in claims to the Associations. In August of 1994, the Associations on behalf of the insurer/subrogee (hereafter collectively referred to as "appellants"), brought suit against appellee Arvida, and against co-appellees Walt Disney World Co., and Sanford Miot, claiming that latent construction defects caused the damage. In a second amended complaint filed in August of 1996, the appellants named as additional defendants co-appellees Mehmet Ilter, BKM East, Inc. and IBBID Investments of Florida. These defendants were responsible for the manufacture, design, and installation of trusses at Sabal Chase.

Thereafter, the appellees moved for summary judgment under the fifteen-year statute of repose, Section 95.11(3)(c), which was reenacted in 1980. This statute establishes a four-year statute of limitations period for actions involving property construction. Where the action involves a latent defect, the limitations period begins to run from the time the defect is discovered or should have been discovered. The statute further establishes that a cause of action must commence:

... within 15 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.

The original section 95.11(3)(c), in effect in 1978, was "invalidated" in 1979 by the Florida Supreme Court because the legislature had not expressed an overwhelming public necessity for the provision. Thereafter in 1980, the legislature substantially reenacted the statute stating an overwhelming public need, expanding the statute of repose from 12 to 15 years, and adding the "date of issuance of a certificate of occupancy" as an additional alternative.

The appellees argued that when the appellants filed the complaint in 1994, more than 15 years had passed since the date of issuance of the last certificate of occupancy in 1978, and thus the cause of action could not be maintained. As proof that it had been *798 more than 15 years since the date of actual possession of the owner, the appellees presented the testimony of a representative of Metro-Dade's Department of Planning, Development and Regulation, who stated that certificates of occupancy were issued only to the owner in possession of the property. The trial court granted the appellees' motions for summary judgment and the Associations and insurer/subrogee now appeal.

The appellants first argue that of the four elements required to be established in Section 95.11(3)(c), the appellees failed to establish the "date of possession" by the owners. The record, however, reflects that all certificates of occupancy for the various condominium projects were issued by September of 1978. Testimony established that these certificates were not issued until after the original owner had actual possession of the property. Thus the commencement period for the statute of repose was established in 1978.

The appellants next argue that the turnover provision of the statute of limitations contained in the Condominium Act, Section 718.124, Florida Statutes (1995), extends to the statute of repose provisions contained in Section 95.11(3)(c). According to the appellants, even if the certificates of occupancy establish the date of possession, the failure of the appellees to establish the date on which the developer turned over the association to the unit owners precludes summary judgment. We disagree.

Section 718.124 provides that the statute of limitations for actions by a condominium association does not accrue until the unit owners have acquired control over the association.[1] The legislature clearly provided in Chapter 718 that the limitations period on suits filed by a condominium association is tolled until control of the association passes from the developer to the unit owners. See Charley Toppino & Sons, Inc. v. Seawatch at Marathon Condo. Ass'n., Inc., 658 So.2d 922 (Fla.1995).

However, a statute of limitations is not the same as a statute of repose. The clearly stated purpose of Section 718.124 is to lengthen the statute of "limitations" period, see Regency Wood Condo., Inc. v. Bessent, Hammack & Ruckman, Inc., 405 So.2d 440 (Fla. 1st DCA 1981), not the "repose" period. The appellant's argument to the contrary ignores fundamental distinctions between ordinary statutes of limitations and statutes of repose.[2] As explained by the Florida Supreme Court in Bauld v. J.A. Jones Constr. Co., 357 So.2d 401, 402 (Fla.1978):

We recognize the fundamental difference in character of [the statute of repose] provisions from the traditional concept of a statute of limitations. Rather than establishing a time limit within which action must be brought, measured from the time of accrual of the cause of action, these provisions cut off the right of action after a specified time measured from the delivery of a product or the completion of work. They do so regardless of the time of the accrual of the cause of action or of notice of the invasion of a legal right.

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Bluebook (online)
726 So. 2d 796, 1999 WL 9784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabal-chase-homeowners-v-disney-world-fladistctapp-1999.