Riviera-Fort Myers Master Association, Inc. v. Florentine Development II, LLC
CourtDistrict Court of Appeal of Florida
Date FiledDecember 30, 2020
Docket2D19-1135
StatusPublished
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Full Opinion
NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING
MOTION AND, IF FILED, DETERMINED
IN THE DISTRICT COURT OF APPEAL
OF FLORIDA
SECOND DISTRICT
RIVIERA-FORT MYERS MASTER )
ASSOCIATION, INC., )
)
Appellant, )
)
v. ) Case No. 2D19-1135
)
GFH INVESTMENTS, LLC; )
FLORENTINE DEVELOPMENT II, LLC; )
ROBERT J. SODOMA; RONALD H. )
GABRICK; RALPH CARLTON )
HARRISON; NORMAN J. LANGLOIS; )
STEPHEN V. CALABRO; and MARK M. )
MOCKENSTURM, )
)
Appellees. )
________________________________ )
Opinion filed December 30, 2020.
Appeal pursuant to Fla. R. App. P. 9.130
from the Circuit Court for Lee County;
James R. Shenko, Judge.
Duane A. Daiker, BCS, and Kathleen
G. Reres of Shumaker, Loop & Kendrick,
LLP, Tampa, for Appellant.
Theodore L. Tripp, Jr., and Joel W. Hyatt
of Hahn Loeser & Parks LLP, Fort Myers,
for Appellees GFH Investments, LLC,
and Florentine Development II, LLC.
No appearance for remaining Appellees.
NORTHCUTT, Judge.
Riviera-Ft. Myers Master Association, Inc., appeals a partial judgment in
favor of GFH Investments, LLC, on the latter's claim for an injunction barring
enforcement of certain amendments to the master declaration governing the Riviera-
Fort Myers Community, a mixed-use development near downtown Ft. Myers. We
conclude that the amendments that the circuit court held to be unenforceable are, in
fact, enforceable. We therefore reverse.
At the center of the controversy is a waterfront community comprising two
high-rise residential condominium buildings and two smaller, three-story, mixed-use
buildings containing residential apartments and commercial spaces. Separate
condominium associations own and operate the high-rises. GFH owns the mixed-use
buildings, which are referred to variously as "the Liner Buildings" or the "Independent
Development Parcels." These parcels, along with common areas, are part of a single
homeowners' association as contemplated in chapter 720, Florida Statutes, operated
and overseen by the appellant, the Master Association.
In 2016, the Master Association adopted seven amendments to the
community's master declaration. In general terms, the amendments addressed the
Master Association's authority to approve proposed uses of the Liner Buildings,
increased assessments on them, and imposed additional restrictions on the Liner
Buildings' tenants. In response, GFH's predecessor in interest, Florentine Development
II, LLC, filed suit against the Master Association and eight individual directors and
officers, seeking six forms of relief: (1) a declaratory judgment concerning the legality of
the amendments; (2) damages for tortious interference with a business relationship; (3)
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damages for breach of fiduciary duty; (4) an accounting; (5) a temporary injunction; and
(6) a permanent injunction.
The circuit court dismissed each count as to the eight individual
defendants, and GFH and the Master Association eventually filed cross-motions for
summary judgment on counts one, four, five, and six. The circuit court ruled in favor of
GFH on counts one and six. It declared that all seven amendments were unlawful, and
it permanently enjoined the Master Association from enforcing them. The court ruled
that count four (accounting) would proceed to trial. The Master Association now
appeals the permanent injunction.1
To the extent that a permanent injunction rests on factual matters, it is
reviewed for an abuse of discretion, and to the extent that it rests on legal grounds, it is
reviewed de novo. Operation Rescue v. Women's Health Ctr., Inc., 626 So. 2d 664, 670
(Fla. 1993), rev'd on other grounds sub nom. Madsen v. Women's Health Ctr., Inc., 512
U.S. 753 (1994). "In order to establish entitlement to a mandatory injunction there must
be a clear legal right which has been violated, irreparable harm must be threatened, and
there must be a lack of an adequate remedy at law." Amelio v. Marilyn Pines Unit II
Condo. Ass'n, 173 So. 3d 1037, 1039 (Fla. 2d DCA 2015) (citing Shaw v. Tampa Elec.
Co., 949 So. 2d 1066, 1069 (Fla. 2d DCA 2007)). In this appeal, the Master Association
contends that the disputed master declaration amendments did not violate any clear
legal right possessed by GFH.
1The Master Association initially sought review of the declaratory judgment
as well, but we have dismissed that portion of the appeal. Our review of the subject
nonfinal order concerns only the issuance of the permanent injunction. See Fla. R. App.
P. 9.130(a)(3)(B).
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There does not appear to be any question that the Master Association was
empowered to amend the master declaration upon the approval by at least seventy-five
percent of its voting members, which occurred in this case. Rather, GFH's argument for
injunctive relief below was that the amendments variously violate either the master
declaration itself or the following principles governing the legality and enforceability of
amendments to restrictive covenants:
"In determining the enforceability of an amendment to
restrictive covenants, the test is one of reasonableness."
Holiday Pines Prop. Owners Ass'n v. Wetherington, 596 So.
2d 84, 87 (Fla. 4th DCA 1992). This court defined
"reasonable" as "not arbitrary, capricious, or in bad faith."
Hollywood Towers Condo. Ass'n v. Hampton, 40 So. 3d 784,
787 (Fla. 4th DCA 2010). In other words, as we stated in
Holiday Pines, the modification of restrictions cannot
"destroy the general plan of development." Holiday Pines,
596 So. 2d at 87 (citing Nelle v. Loch Haven Homeowners
Ass'n, 413 So. 2d 28 (Fla. 1982)). Amendments which
cause "the relationship of lot owners to each other and the
right of individual control over one's own property" to be
altered are unenforceable. Id. at 88. Such an alteration is
considered a "radical change of plans." Id.
Klinow v. Island Court at Boca W. Prop. Owners' Ass'n, 64 So. 3d 177, 180 (Fla. 4th
DCA 2011) (footnote omitted). Klinow further defined "radical change" as "a change
which would create an inconsistent scheme, or a deviation in benefit from that of the
grantee to that of the grantor." Id. (citing Flamingo Ranch Estates, Inc. v. Sunshine
Ranches Homeowners, Inc., 303 So. 2d 665, 666 (Fla. 4th DCA 1974)). We address
each amendment's alleged noncompliance with these principles in turn.
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Sections 1.1.26 and 10.13 โ Liner Building Commercial Use Restrictions
The first amendment that GFH challenged was to the definition of
"Independent Development Parcel":2
1.1.2[6][3] "Independent Development Parcel" means any
portion of the Properties which is not part of the Common
Areas, which has not been submitted to condominium
ownership, and which is developed and used, subject to the
restrictions on use contained elsewhere in this Declaration,
for commercial, restaurant, office, marina, or any other non-
residential business use, or for condominiums or
apartments, and shall include all buildings and
improvements located upon such property. As provided in
the Riviera St. Tropez Planned Unit Development Order
Number 3260 Item 4, dated March 8, 2005, the Independent
Development Parcels shall contain at least 5,048 square feet
of "leasable commercial office space, maintaining an
occupational license for each space." All commercial and
retail uses of the Independent Development Parcels must be
approved by the Association as provided in Section 10.13
below.
GFH contests this amendment on several grounds, the first being that it
violates the "Riviera Development Order" issued by the City of Fort Myers when it
approved the project. GFH complains that the master declaration amendment
improperly adds use restrictions not set forth in the order. But we reject GFH's premise
that the development order controls any of the issues raised in this appeal. Although
the order did impose use restrictions on the affected property, they were minimum
requirements; they did not preclude the imposition of additional restrictions on the
2When we quote amendments to sections that were included in the
original master declaration, additions will be underlined and deletions will be struck
through.
3In its brief, the Master Association pointed out that this amendment was
mislabeled as section 1.1.25, when it should have been section 1.1.26, its number in the
original master declaration.
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properties. Indeed, it is well established that restrictive covenants can be more
restrictive than limitations imposed by municipalities. See, e.g., Luani Plaza, Inc. v.
Burton, 149 So. 3d 712, 714โ16 (Fla. 3d DCA 2014) (allowing a business owners'
association to prohibit residential use of a commercial property despite municipal
permission for residential use); Stuart Sportfishing, Inc. v. Kehoe, 541 So. 2d 169, 170
(Fla. 4th DCA 1989) (holding that a less-restrictive zoning ordinance did not control over
a more-stringent restrictive covenant); Tolar v. Meyer, 96 So. 2d 554, 556 (Fla. 3d DCA
1957) (holding that a zoning decision allowing property to be used as a church did not
control over a restrictive covenant prohibiting such a use).
GFH also argues that the amendment to section 1.1.26 impermissibly
alters GFH's ability to control its own property and constitutes a "radical change" in the
relationship between GFH and the Master Association. We disagree. It is true that from
the outset the master declaration at section 3.7 has provided that GFH could enter into
commercial leases "under such terms and conditions" as it, "in its sole and absolute
discretion," deemed acceptable. GFH contends that section 1.1.26 removes its
discretion and confers it upon the Master Association.
However, elsewhere in the master declaration, at section 2.9.8, the Master
Association was already granted power to "take any such other action which the Board
shall deem advisable with respect to the Properties as may be permitted hereunder or
under Applicable Law." In turn, section 5.1 already granted the Master Association "the
absolute right to regulate the use of the properties." It is clear, then, that the
amendment to section 1.1.26 does not in itself alter the relationship between GFH and
the Master Association by granting the latter any power that it did not already possess.
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Further, and more importantly, the amendment to section 1.1.26 cannot be
read in isolation; rather, it specifically provides that commercial uses of the Liner
Buildings are to be approved by the Master Association "as provided in section 10.13."
The incorporation of section 10.13, which was added at the same time as the new
language in section 1.1.26, is a crucial point that GFH overlooks. New section 10.13
sets forth the following guidelines for the Master Association's approval of uses of the
Liner Buildings:
10.13 Independent Development Parcels Retail and
Commercial Uses; Sale of Alcohol, Tobacco, Cannabis and
Lottery Tickets Prohibited. All retail and commercial uses of
the Independent Development Parcels must be approved in
writing in advance by the Association Board of Directors
notwithstanding any other provisions of the [Planned Unit
Development] or other City or County Ordinances or zoning.
The Board of Directors shall have the authority to deny any
retail or commercial uses that in its reasonable discretion
shall detract from the overall resort style residential
atmosphere of the Property and/or adversely affect property
values of the Units. Notwithstanding anything to the contrary
contained herein the sale of alcohol, tobacco (including e-
cigarettes or vaping devices), cannabis (in any form) and
lottery tickets is prohibited anywhere on the Property
including but not limited to the Independent Development
Parcels.
This language, contrary to GFH's assertion, is a limitation on the Master
Association's otherwise "absolute right" under section 5.1 to regulate the use of the
community properties, including the Liner Buildings. Indeed, the amendments to
sections 1.1.26 and 10.13 permit the association board to reject a proposed retail or
commercial use only when "in its reasonable discretion" the board concludes that the
use would "detract from the overall resort style residential atmosphere of the Property
and/or adversely affect property values of the Units." Further, the express prohibitions
listed in section 10.13 are facially reasonable restrictions commonly imposed in mostly
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residential communities. Cf. Woodside Vill. Condo. Ass'n v. Jahren, 806 So. 2d 452,
456 (Fla. 2002) (recognizing that owners of property in condominium complexes
necessarily accept a greater degree of restriction on their property rights); Hidden
Harbour Estates, Inc. v. Basso, 393 So. 2d 637, 640 (Fla. 4th DCA 1981) (stating that a
condominium association board may restrict uses that are "demonstrably antagonistic to
the legitimate objectives of the condominium association, i.e., the health, happiness and
peace of mind of the individual unit owners").
The upshot is that to the extent the amendment to section 1.1.26 and the
addition of section 10.13 can be said to have shifted the relationship between GFH and
the Master Association, that shift was to GFH's benefit. These amendments do not
transgress the principles set forth in Klinow. They are reasonable and enforceable.
Section 5.1 โ General Rule Applicability
GFH also challenged the addition of language to section 5.1 clarifying that
all rules and regulations in the master declaration apply to the Liner Buildings:
5.1 Rules and Regulations Governing Use of the
Properties. The Master Association shall have the absolute
right to regulate the use of the Properties, and may from time
to time modify, amend and supplement the Rules and
Regulations. A current copy of all Rules and Regulations
established hereunder, and any modifications, amendments
or supplements thereto, shall be provided to all Owners,
tenants, residents, guests and persons occupying, working
or operating within or from the Independent Development
Parcels, made available at the request of any Community
Beneficiary. As a point of clarification all Rules and
Regulations apply to the Independent Development Parcels.
GFH argues that "with the stroke of a pen" the amendment "purported to
give the Master Association unfettered discretion to create rules for the Liner Buildings
and make all of the Master Association's rules applicable to the commercial and retail
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uses within the Liner Buildings." GFH further contends that the amendment "is
unreasonable on its face because it divests GFH of its right to control what is going on
within its own buildings," in contravention of the principles stated in Klinow.
Notably, however, GFH does not offer an example of how this amendment
to section 5.1 imposes any new restriction on GFH or the Liner Buildings or alters GFH's
rights in any way. As a component of the "properties," which the master declaration has
always defined as including the independent development parcels, the Liner Buildings
are of course subject to the master declaration and the rules and regulations contained
in or enacted pursuant to it. GFH has not shown and cannot show how the
amendment's general statement that the rules and regulations apply to the Individual
Development Parcels harms GFH or alters its rights in any way. Injunctive relief was
not warranted in regard to this amendment.
Section 7.2 โ Assessments
Another amendment at issue was made to section 7.2, which governs
property owners' responsibilities for assessments. GFH's specific complaint with this
amendment concerns future changes to the Liner Buildings' percentage share:
7.2 Percentage Share of Parcels. The initial Percentage
Shares of Assessments are set forth in Section 7.3. The
Percentage Share of a Condominium shall be divided
between the Units in the condominium based upon their
"percentage interests" in the common elements in the
Condominium, as set forth in the Declaration of
Condominium. To the extent permitted under Applicable
Law, as additional the Independent Development Parcels
are developed or their present uses change hereafter, the
Master Association shall modify the Percentage Shares of
the Parcels based upon the state and extent of development
of the Common Areas and other portions of the Properties,
the levels of services being provided to the Owners with
each Parcel and other relevant factors. The Independent
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Development Parcels shall be assessed at the rate of 3.27%
percent, with this Percentage Share being subject to change
by the Master Association as provided herein above.
Notwithstanding anything to the contrary that may be set
forth herein, an owner of any Parcel which has not been
developed and for which a TCO has not been issued shall
not be responsible to pay any assessments for an account of
any incomplete Parcel. Any Commercial Parcel governed by
any Condominium Association or other privately owned
commercial space shall be assessed at the fixed rate of one-
one-hundredths percent (0.01%).
GFH contends that this provision, which does not require that GFH
consent to a change in its percentage share of assessments, violates section
720.306(1)(c), Florida Statutes (2016), which states:
Unless otherwise provided in the governing documents as
originally recorded or permitted by this chapter or chapter
617 [nonprofit corporations], an amendment may not
materially and adversely alter the proportionate voting
interest appurtenant to a parcel or increase the proportion or
percentage by which a parcel shares in the common
expenses of the association unless the record parcel owner
and all record owners of liens on the parcels join in the
execution of the amendment.
The Master Association, on the other hand, points out that by its terms
that law contemplates that an association's governing documents may exclude it from
the statute's operation by providing "otherwise." Here, section 7.2 has always
mandated that the association "shall" alter the percentage shares of the parcels "based
upon the state and extent of development of the Common Areas and other portions of
the Properties, the levels of services being provided to the Owners with each Parcel and
other relevant factors." As such, the challenged amendment to section 7.2 was
authorized and enforceable.
Section 10.6 โ Animal Restrictions
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In its lawsuit, GFH complained of the following amendment to section
10.6, concerning animal and pet restrictions:
10.6 Animal Restrictions. No animal, livestock, reptiles, or
poultry of any kind shall be raised, bred, or kept on or in any
Common Areas. No dog, cat or other pet may run loose
(unleashed) on Common Areas or any portion of the
Properties, and the Master Association may from time to
time limit the areas designated for such purposes. Persons
occupying or visiting the Independent Development Parcels
for less than thirty (30) days and persons working or
operating retail or commercial businesses from the
Independent Development Parcels are prohibited from
keeping pets. There may not be more than one (1)
household pet maintained within each Separately
Occupiable Portion of the Independent Development
Parcel(s) (as defined below) that is occupied for thirty (30)
continuous days or more, to be limited to dogs or cats (or
other household pets as defined and specifically permitted
by the Association), which shall not be kept, bred or
maintained for any commercial purpose and shall not
become a nuisance or annoyance to neighbors. The
maximum total weight of any such household pets shall be
limited to thirty-five (35) pounds. Those pets which, in the
sole discretion of the Master Association, endanger health,
have the propensity for dangerous or vicious behavior (such
as pit bulldogs or other breeds or mixed breeds which have
the propensity for dangerous or vicious behavior), make
objectionable noise, or constitute a nuisance or
inconvenience to other persons shall be removed upon
request of the Board. Pet owners must pick up all solid
wastes of their pets and dispose of such wastes
appropriately. All pets (including cats) must be kept on a
leash of a length that affords reasonable control over the pet
at all times, or must be carried, when outside. Any violation
of the provisions of this Section shall entitle the Master
Association to all of its rights and remedies, including, but
not limited to, the right to fine pet owners (as provided in any
applicable rules and regulations) and/or to require, any pet to
be permanently removed from the Property. This Section
shall not prohibit the keeping of fish or a caged household-
type bird(s), provided that it does not become a nuisance or
annoyance to neighbors. Notwithstanding the foregoing, the
Master Association, shall be entitled, but shall not be
obligated, to grant a written exemption to a pet owner which
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allows it to maintain more than one (1) household per, or a
pet which exceeds or will exceed thirty-five (35) pounds at
maturity. As used herein Separately Occupiable Portion
means any part of an Independent Development Parcel that
is used for any purpose including but not limited to a
business, a residence, an overnight lodging room or suite.
GFH does not contest the amendment insofar as it concerns animals in
the common areas. Rather, it objects to the Master Association's attempt to control
what goes on inside the Liner Buildings, again allegedly in violation of the principles
stated in Klinow. For its part, the Master Association claims this authority under master
declaration section 4.3.3, which states that "the rights and easements of enjoyment of
Community Beneficiaries created hereby shall be subject to . . . the right of the Master
Association to take such steps as it may determine are reasonably necessary to protect,
maintain and operate the Properties."
We note that the provisions of amended section 10.6 are identical to
requirements imposed on the community's condominium residents. We agree with the
association's assertion that these restrictions on number, size, type, and breed of pets
are reasonable, as are the requirements that owners leash and pick up after their
animals. The Liner Buildings are in relatively close proximity to the condominium
buildings, and it is inevitable that dogs kept in the Liner Buildings will need to go outside
and use the common areas of the property, and they can therefore be regulated to a
reasonable degree to protect the community members' mutual enjoyment of the
common areas. Cf. Majestic View Condo. Ass'n v. Bolotin, 429 So. 2d 438, 440 (Fla.
4th DCA 1983) (implying in dicta that such pet restrictions are reasonable in the
condominium setting). As such, the circuit court erred in enjoining the enforcement of
this amendment.
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Section 10.2.1 โ Liner Building Tenant Parking
GFH also challenged the adoption of section 10.2.1, which sets forth
parking restrictions for the occupants of the Liner Buildings:
10.2.1 Independent Development Parcel Parking.
Twenty-nine (29) parking spaces have been assigned to
Independent Development Parcels for the exclusive use of
the Owner(s) thereof and all other occupants of the buildings
thereon. The owners and occupants are therefore prohibited
from using any other parking spaces on the properties,
including but not limited to the parking spaces for
motorcycles, bicycles and the like. The Board may make
temporary exceptions to this restriction on a case by case
basis to accommodate special circumstances and may
attach conditions to the granting of such exceptions. The
granting of such temporary exceptions shall not create a
precedent requiring exceptions in the future even in similar
situations.
GFH claimed below that this new provision permitting the Liner Buildings'
occupants to use only twenty-nine specified parking spaces and prohibiting them from
using other spaces on the property violates section 3.1 of the master declaration and
section 720.304(1). Section 3.1 provides generally that the common areas of the
property are "intended for the use and benefit of all Community Beneficiaries." Section
720.304(1) similarly states that "all common areas and recreational facilities serving any
homeowners' association shall be available to parcel owners in the homeowners'
association served thereby and their invited guests for the use intended for such
common areas and recreational facilities."
But it is also true that the mentioned statute provides that use of common
areas may be subject to "reasonable rules and regulations." Further, the definition of
"Parking Spaces" in section 1.1.41 states that parking spaces may be assigned as
limited common areas. By implication, then, nonassigned parking spaces are common
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areas, and common sense would seem to classify guest parking as a common area, as
it is typically open to common use. The question becomes whether the Master
Association had authority to prohibit the Liner Building's tenants and guests from using
that common area.4 One precedent from the Fourth District suggests that limitations of
the kind adopted in the amendment to section 10.2.1 are reasonable regulations.
In Juno By The Sea North Condominium Ass'n (The Towers), Inc. v.
Manfredonia, 397 So. 2d 297 (Fla. 4th DCA 1980), a seventy-unit condominium building
had three parking lots: a covered lot with twenty spaces that had been designated in the
master declaration as limited common elements and sold to individual unit owners who
had exclusive use of those spaces; a second lot that had been designated as a
common element with fifty spaces that were unassigned; and a third lot across the
street with additional auxiliary parking. Id. at 301. Due to congestion, the condominium
association assigned the fifty spaces in the common area lot to the fifty units that did not
own exclusive spaces in the covered lot. Id. The owners of the covered spaces sued,
contending that the association could not prohibit their use of the common area lot. The
Fourth District disagreed. To the contrary, the court held that the limitation on use of the
4We note that, to the extent the Master Association claims the guest
parking is now, by virtue of this amendment, a limited common element to which access
has been restricted to only condominium building owners, the Master Association did
not sufficiently preserve that argument below. It raised that contention for the first time
in its motion for reconsideration of the partial final judgment, so it therefore cannot be
considered on appeal. See Sch. Bd. of Pinellas Cty. v. Pinellas Cty. Comm'n, 404 So.
2d 1178, 1178 (Fla. 2d DCA 1981). Additionally, the Master Association has not
pointed to any provision formally designating the guest spaces as limited common
elements, as would be expected because limited common elements become
appurtenances of the units to which they are assigned. See Juno By The Sea N.
Condo. Ass'n (The Towers), Inc. v. Manfredonia, 397 So. 2d 297, 302โ03 (Fla. 4th DCA
1980).
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common area lot passed the test of reasonableness because the association's plan
fairly ensured that each unit had access to parking. Id. at 302โ05. Thus, even though
the fifty-space lot remained a common area, its use reasonably could be restricted to
certain unit owners.
We see no difference in this case. Under section 10.2.1, the Liner
Building tenants have been granted exclusive use of the twenty-nine spaces nearest to
their buildings, akin to the exclusive covered lots in Juno. Although the property's other
spaces are a common area, the Master Association's restriction in this case is within the
bounds of reasonableness. As such, it is enforceable.
Section 10.12 โ Residential Lease Restrictions
Finally, GFH challenged the addition of section 10.12, which sets forth
numerous restrictions and conditions on leases of the residential units in the Liner
Buildings:
10.12 Residential Leases in the Independent
Development Parcels. Leases with a term of thirty (30) days
or more of Separately Occupiable Residential Portions of an
Independent Development Parcel, as defined below, shall be
subject to the prior written approval of the Association.
Every lease shall specifically require a deposit from the
prospective tenant in an amount not to exceed one (1)
month's rent ("Deposit"), to be held in an escrow account
maintained by the Association. No leases for a term of less
than thirty (30) days are allowed. Every lease shall provide
(or, if it does not, shall be automatically deemed to provide)
that: (1) a material condition of the lease shall be the tenant's
full compliance with the covenants, terms, conditions and
restrictions of the Declaration, and with any and all rules and
regulations adopted by the Master Association from time to
time (before or after the execution of the lease); (ii) and that
a tenant may not, under any circumstances, sublet the
occupied space (or any portion thereof) to any other person
or permit occupancy by any other person that has not been
approved. Additionally, copies of all written leases shall be
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submitted to the Master Association, and tenants must
register with the Association prior to moving in. The owner
of the Independent Development Parcel will be jointly and
severally liable with the tenant to the Association for any
amount which is required by the Association to repair any
damage to the Common Area from the acts or omissions of
tenants (as determined in the sole discretion of the Master
Association) and to pay any claim for injury or damage to
property caused by the negligence of the tenant and a
special charge may be levied against the owner of the
Independent Development Parcel therefore. All leases are
hereby made subordinate to any lien filed by the Master
Association, whether prior or subsequent to such lease. The
Master Association may terminate any lease that is subject
to approval by the Master Association and may evict the
tenants pursuant to Chapter 83 Florida Statutes. As used
herein Separately Occupiable Residential Portion means any
part of an Independent Development Parcel that is used for
a residence, an overnight lodging room or suite.
Notwithstanding the foregoing guest suites for the use by
guests of Owners when the Owner is also in residence on
the Property are allowed.
GFH argued below that, as with section 10.13's regulations on commercial
leases, these rules regulating GFH's residential leases unlawfully alter its ability to
control its property, contrary to Klinow and section 3.7 of the master declaration, which
gives GFH discretion to determine the terms of its commercial leases.
First, section 3.7 does not to apply to the residential leases at issue in this
amendment. It states that GFH may "enter into leases with Commercial Lessees . . .
upon such terms as may be acceptable to [GFH], in its sole and absolute discretion."
The common meaning of "commercial lessees" would certainly suggest that section
3.7's provisions covering commercial leases do not apply to residential leases. And
indeed, "Commercial Lessees," as the term is used in section 3.7, are defined in section
1.1.9 of the master declaration as "a lessee of all or any portion of an Independent
Development Parcel, if any, that is not designed primarily for residential occupancy."
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Further, the portions of the Liner Buildings that would be affected by section 10.12, i.e.,
the sixteen residential apartments, are designed primarily for residential use. The broad
discretion granted to GFH by section 3.7 is not implicated by the addition of section
10.12.
Second, the rules and regulations contained in section 10.12 are
reasonable limitations on use. Again, the conditions set forth in the section are virtually
identical to the those imposed on units in the residential condominium towers. We
would be hard-pressed to conclude that placing all residential units in the community
under the same rules is unreasonable. The Liner Buildings, although separate
structures, are part of a community for which courts have granted "a greater degree of
control over and limitation upon the rights of the individual owner than might be
tolerated given more traditional forms of property ownership." Seagate Condo. Ass'n v.
Duffy, 330 So. 2d 484, 486 (Fla. 4th DCA 1976), approved sub nom. Woodside Vill.
Condo. Ass'n v. Jahren, 806 So. 2d 452 (Fla. 2002). Indeed, the court in Seagate held
that even an absolute prohibition against the leasing of units in a condominium complex
can be a reasonable use limitation:
Given the unique problems of condominium living in general
and the special problems endemic to a tourist oriented
community in South Florida in particular, appellant's avowed
objectiveโto inhibit transiency and to impart a certain
degree of continuity of residence and a residential character
to their communityโis, we believe, a reasonable one,
achieved in a not unreasonable manner by means of the
restrictive provision in question. The attainment of this
community goal outweighs the social value of retaining for
the individual unit owner the absolutely unqualified right to
dispose of his property in any way and for such duration or
purpose as he alone so desires.
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Id. at 486โ87. We reach the same conclusion here and conclude that the amendment
adopting section 10.12 is reasonable and enforceable.
In sum, we reverse the circuit court's ruling on all seven amendments, and
we remand for the court to vacate the injunction and enter judgment for the Master
Association on Count VI of GFH's third amended complaint.
Reversed and remanded.
SILBERMAN, J., and CASE, JAMES R., ASSOCIATE SENIOR JUDGE, Concur.
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