Rivercrest Community Assoc., Inc. v. American Homes 4 Rent Properties One, L L C
CourtDistrict Court of Appeal of Florida
Date FiledJune 3, 2020
Docket2D16-5301
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
RIVERCREST COMMUNITY )
ASSOCIATION, INC., a Florida )
nonprofit corporation, )
)
Appellant, )
)
v. ) Case No. 2D16-5301
)
AMERICAN HOMES 4 RENT )
PROPERTIES ONE, LLC, a foreign )
limited liability company, AMERICAN )
HOMES 4 RENT PROPERTIES )
THREE, LLC, a foreign limited liability )
company, AMERICAN HOMES 4 RENT )
PROPERTIES SIX, LLC, a foreign )
limited liability company, AMERICAN )
HOMES 4 RENT PROPERTIES )
SEVEN, LLC, a foreign limited liability )
company, AMH 2014-1 BORROWER, )
LLC, a foreign limited liability company, )
AH4R PROPERTIES, LLC, a foreign )
limited liability company, AH4R-FL 11, )
LLC, a foreign limited liability company, )
AMH 2015-1 BORROWER, LLC, a )
foreign limited liability company, )
AMERICAN HOMES 4 RENT TRS, LLC, )
a foreign limited liability company, )
BEAZER PRE-OWNED HOMES, LLC, )
a foreign limited liability company, )
BEAZER PRE-OWNED HOMES II, )
LLC, a foreign limited liability company, )
AMERICAN RESIDENTIAL LEASING )
COMPANY, LLC, a foreign limited )
liability company, AH4R I FL, LLC, a )
foreign limited liability company, 2014-1 )
IH BORROWER L.P., a foreign limited )
partnership, 2014-3 IH BORROWER )
L.P., a foreign limited partnership, )
2013-1 IH BORROWER L.P., a foreign )
limited partnership, 2014-2 IH )
BORROWER L.P., a foreign limited )
partnership, 2015-2 IH2 BORROWER, )
L.P., a foreign limited partnership, )
2015-1 IH2 BORROWER, L.P., a foreign )
limited partnership, 2015-3 IH2 )
BORROWER L.P., a foreign limited )
partnership, IH3 PROPERTY FLORIDA, )
L.P., a foreign limited partnership, THR )
FLORIDA, L.P., a foreign limited )
partnership, IH4 PROPERTY FLORIDA, )
L.P., a foreign limited partnership, IH5 )
PROPERTY FLORIDA, L.P., a foreign )
limited partnership, PROGRESS )
RESIDENTIAL 2015-1 BORROWER, )
LLC, a foreign limited liability company, )
PROGRESS RESIDENTIAL 2014-1 )
BORROWER, LLC, a foreign limited )
liability company, PROGRESS )
RESIDENTIAL 2015-2 BORROWER, )
LLC, a foreign limited liability company, )
PROGRESS RESIDENTIAL 2015-3 )
BORROWER, LLC, a foreign limited )
liability company, FREO FLORIDA, )
LLC, a foreign limited liability company, )
SBY 2014-1 BORROWER LLC, a )
foreign limited liability company, and )
2015B PROPERTY OWNER LLC, a )
foreign limited liability company, )
)
Appellees. )
)
Opinion filed June 3, 2020.
Appeal pursuant to Fla. R. App. P. 9.130
from the Circuit Court for Hillsborough
County; Claudia Rickert Isom, Judge.
Joshua P. Welsh (withdrew after briefing),
Karen S. Cox, David C. Banker, Charles
Evans Glausier, and Melissa J. Knight of
Bush Ross, P.A., Tampa, for Appellant.
Robin I. Frank and Andrew B. Blasi of
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Shapiro, Blasi, Wasserman & Hermann,
P.A., Boca Raton, for Appellees.
SALARIO, Judge.
Rivercrest Community Association, Inc. (the Association), a homeowners'
association, appeals from two nonfinal orders enjoining it from enforcing provisions of its
declaration—one granting a permanent injunction and one denying a motion for
summary judgment. We are without jurisdiction to review the order denying summary
judgment, and we dismiss the appeal to that extent.1 See Chiandusse v. Grannis, 133
So. 3d 591, 593 (Fla. 2d DCA 2014). We reverse the order granting the permanent
injunction and remand for further proceedings.
This appeal centers on the question of whether the Second Amended and
Restated Declaration of Covenants, Conditions, and Restrictions for Rivercrest was
validly approved. Rivercrest is a residential community in Hillsborough County
administered by the Association. At the time the second amended declaration was
approved, the affairs of Rivercrest were regulated by the Amended and Restated
Declaration of Covenants, Conditions, and Restrictions for Rivercrest. The second
amended declaration purported to supersede the amended declaration and contained
new regulations on the leasing of homes in Rivercrest that were significantly more
restrictive than those in the amended declaration.
1The Association has characterized the order denying its motion for
summary judgment as one refusing to dissolve a temporary injunction that is
immediately appealable under Florida Rule of Appellate Procedure 9.130(a)(3)(B).
Although the Association's motion for summary judgment requested that relief ancillary
to its alleged entitlement to summary judgment, this is a case where "functionally the
order . . . merely denies a summary judgment" and is not independently appealable.
See Chiandusse v. Grannis, 133 So. 3d 591, 593 (Fla. 2d DCA 2014).
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The appellees here are Rivercrest property owners who want to lease
homes and thus are adversely affected by the changes in the second amended
declaration. Alleging that the second amended declaration is invalid, they sued the
Association for declaratory and injunctive relief and money damages. All of their claims
hinge on the contention that the second amended declaration was not approved by the
personal vote of lot owners representing sixty-seven percent of the lots in Rivercrest,
which they say the amended declaration unambiguously required in order for the
second amended declaration to be validly approved. On the appellees' motion for
temporary injunction, the trial court agreed with their interpretation of the amendment
provisions of the amended declaration and granted a temporary injunction that
prohibited the Association from enforcing the new leasing restrictions.
The appellees later filed a motion for partial summary judgment in which
they sought summary judgment on the declaratory judgment and permanent injunction
components of their claims and on the liability portion of their damages claim. The
Association filed a cross-motion for a final summary judgment. The central legal issue
in both motions was again whether the second amended declaration was validly
approved under the procedures set forth in the amended declaration. The appellees
argued that the amendment provisions of the amended declaration unambiguously
required the personal vote of lot owners representing sixty-seven percent of the lots in
Rivercrest. The Association argued that they unambiguously did not. The trial court
again agreed with the appellees, granted their motion for partial summary judgment,
denied Rivercrest's motion for summary judgment, and, ultimately, entered an amended
partial final judgment in which it (1) declared the lease restrictions in the second
amended declaration invalid, (2) permanently enjoined the enforcement of those
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restrictions, and (3) resolved the liability aspect of the appellees' damages claim in their
favor. That leaves the question of damages to be decided in the trial court.
We have jurisdiction under rule 9.130(a)(3)(B) because the amended
partial final judgment grants or continues an injunction.2 Given that jurisdictional basis,
the scope of our review is limited to the permanent injunction contained in the amended
partial final judgment. See, e.g., Kountze v. Kountze, 996 So. 2d 246, 250 (Fla. 2d DCA
2008) (discussing scope of review in the context of an appeal from a nonfinal order
listed in rule 9.130). The trial court's decision to grant that injunction hinged on its legal
conclusion that terms of the amended declaration did not allow the second amended
declaration to be adopted in the way that it was and, as a result, that the second
amended declaration is invalid. As we shall see, this is purely a question of law—what
does the text of the relevant provisions of the amended declaration mean?—and as
such, our review is de novo.3 See, e.g., Retreat at Port of Islands, LLC v. Port of
Islands Resort Hotel Condo. Ass'n, 181 So. 3d 531, 532-33 (Fla. 2d DCA 2015) (holding
2The Association has correctly not argued that the amended partial final
judgment is appealable under rule 9.110(k)—rule 9.110(h) when this appeal was filed—
governing appeals from partial final judgments. See, e.g., Fla. Farm Bureau Gen. Ins.
Co. v. Peacock's Excavating Serv., Inc., 186 So. 3d 6, 8-10 (Fla. 2d DCA 2015).
3Determining the appropriate standard of review in the context of an
injunction order rendered on motions for summary judgment can get tricky. See
generally Shaw v. Tampa Elec. Co., 949 So. 2d 1066, 1068-69 (Fla. 2d DCA 2007)
(describing the problem). It is not so here. The trial court's decision to grant summary
judgment and issue a permanent injunction is dependent on its legal conclusion that the
amended declaration unambiguously requires the personal vote of owners representing
sixty-seven percent of the lots in Rivercrest to approve an amendment. Without that
conclusion, there would be no injunction. As we have explained above, that conclusion
is a pure question of law that we review de novo. See also Williams v. Victim Justice,
P.C., 198 So. 3d 822, 826 (Fla. 2d DCA 2016) (holding that, to the extent an injunction
rests on legal questions, it is reviewed de novo) (quoting Morgan v. Herff Jones, Inc.,
883 So. 2d 309, 313 (Fla. 2d DCA 2004)).
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that a trial court's interpretation of a condominium association's bylaws is reviewed de
novo); Courvoisier Courts, LLC v. Courvoisier Courts Condo. Ass'n, 105 So. 3d 579,
580 (Fla. 3d DCA 2012) ("A trial court's interpretation of a condominium's declaration is
also reviewed de novo.") (citing Volusia County v. Aberdeen at Ormond Beach, L.P.,
760 So. 2d 126, 130 (Fla. 2000)).
We turn, then, to what the amended declaration says about the adoption
of amendments. The definitions section of the amended declaration identifies three
players in the governance of the Rivercrest community that are relevant here. First,
there is an "Owner," who is simply the titleholder of any lot in the community. Second,
there is a "Member," which refers to a member of the Association. There are two
classes of membership, Class A and Class B: The developer and any lot-owning affiliate
of the developer are treated as a single Class B Member, and every other Owner is a
Class A Member. Third, there is a "Neighborhood Representative." The Rivercrest
community is divided into several neighborhoods, and the Class A Members of each
neighborhood select a Neighborhood Representative "to cast [the Class A Members']
votes on Association matters (except where Members are required to cast their own
votes)."
Section 6.3 of the amended declaration governs how the Members vote
on matters related to Association governance. Each Class A Member—in other words,
each Owner other than the developer and its lot-owning affiliates—"has one equal vote
for each lot they own." Section 6.3 does not provide for voting by the Class B Member,
although it does provide that, for a period of time specified in the amended declaration,
the Class B member gets to appoint a majority of the Association's board of directors.
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Once Class B membership terminates, the developer and each of its affiliates who own
a lot become Class A Members with one Class A vote for each lot they own.
The voting rights of the Class A Members are presumptively exercised by
the Neighborhood Representatives those Members select. Section 6.3(c) provides as
follows:
Except as otherwise specified in this Declaration or the By-
Laws, Neighborhood Representatives shall exercise the vote
for each Lot a Class "A" Member owns; provided, until a
Neighborhood Representative is first elected for a
Neighborhood, each Owner within such Neighborhood may
personally cast the vote attributable to his or her Lot on any
issue requiring a membership vote. . . . A Neighborhood
Representative may cast the number of votes corresponding
to the number of eligible Class "A" votes within his or her
Neighborhood.
Prior to any scheduled vote, a Neighborhood Representative
shall poll the Owners within the Neighborhood and allow a
reasonable time for response. . . . For each Lot for which
specific written voting direction is given [by an Owner], the
Neighborhood Representative shall vote as directed. For
each Lot for which no direction or conflicting direction is
given, the Neighborhood Representative may cast the vote
for such Lot as he or she, in his or her discretion, deems
appropriate. . . .
In any situation where a Member is entitled personally to
exercise the vote for his or her Lot, and there is more than
one Owner of such Lot, the vote for such Lot shall be
exercised as the co-Owners determine among themselves
and advise the Secretary of the Association in writing prior to
the vote being taken. Absent such advice, the Lot's vote
shall be suspended if more than one Person seeks to
exercise it.
(Emphasis added.) In sum, then, the votes of the Class A Members—i.e., all owners
except the developer and its lot-owning affiliates—are to be cast by the Neighborhood
Representatives "[e]xcept as otherwise specified" in the amended declaration and
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bylaws, a situation which involves an Owner's entitlement "personally to exercise the
vote for his or her lot."
The procedure for amending the amended declaration is specified in
section 20, titled "Amendment of Declaration." Subsection 20.2, titled "By the
Members," provides, in relevant part:
Except as otherwise specifically provided above and
elsewhere in this Declaration, this Declaration may be
amended only by the affirmative vote or written consent, or
any combination thereof, of Owners representing at least
67% of the Lots (with each Lot being allocated one vote
regardless of whether owned by a Class "A" Member or a
Class "B" Member).
(Emphasis added.) Amending the declaration thus requires an "affirmative vote," or a
written consent in lieu of a vote, of Owners representing sixty-seven percent of the lots.
Here, there is no dispute that Neighborhood Representatives representing
Class A Members who were Owners of at least sixty-seven percent of the lots voted in
favor of the second amended declaration. What the appellees argued in the trial court,
and what the trial court held, is that subsection 20.2 unambiguously requires that all of
the Owners vote personally on the amendment and that a vote by the Neighborhood
Representatives on behalf of those owners who are Class A Members is not sufficient.
Both parties agree that we look to the rules governing the interpretation of contracts to
assess this question. See Retreat at Port of Islands, 181 So. 3d at 533 (interpreting
condominium bylaws under contract principles); Royal Oak Landing Homeowner's Ass'n
v. Pelletier, 620 So. 2d 786, 788 (Fla. 4th DCA 1993) (interpreting homeowners'
association declaration under contract principles). Here, two settled principles of
contract interpretation resolve this case: (1) plain and unambiguous contract terms
receive their plain and unambiguous meanings, see Hahamovitch v. Hahamovitch, 174
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So. 3d 983, 986 (Fla. 2015), and (2) contractual provisions are to be interpreted in the
context of the entire agreement, Retreat at Port of Islands, 181 So. 3d at 533.
The appellees' interpretation, which the trial court accepted, that section
20.2 requires the personal votes of Owners representing sixty-seven percent of the lots
effectively plucks that subsection out of the amended declaration and ignores the plain
language of section 6.3. Section 6.3 plainly and unambiguously provides that the votes
on association matters by Owners who are Class A Members are to be exercised by the
Neighborhood Representatives "[e]xcept as otherwise specified" in the amended
declaration or the bylaws. That means that the Neighborhood Representatives' vote on
the second amended declaration is proper unless something in section 20.2 specifies
otherwise. To "specify" something is to state it specifically, precisely, or in detail. See
Fla. League of Cities v. Smith, 607 So. 2d 397, 399 (Fla. 1992) (determining the
meaning of the term "specified" in a constitutional provision); Specify, Merriam-Webster
Online Dictionary, https://www.merriam-webster.com/dictionary/specify (last visited May
27, 2020) (defining "specify" as "to name or state explicitly or in detail"). Thus, as the
Association argues, we should expect to see language that clearly excepts the
amendment process from the general rule that the votes of Owners who are Class A
Members are to be cast by the Neighborhood Representatives.
Section 20.2 contains no such language. That section says only that the
amended declaration may be amended upon the "affirmative vote or written consent" of
the Owners. An affirmative vote is simply a "yes" vote in favor of the amendment and
says nothing about whether the vote must be cast by each and every individual Owner
personally or whether the Neighborhood Representatives may cast the votes of those
Owners who are Class A Members after polling them as provided in section 6.3.
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Furthermore, neither the trial court nor the appellees have identified anything about the
option of a written consent that could or should be interpreted as vesting voting authority
solely in individual Owners as distinguished from the Neighborhood Representatives.
Simply put, nothing in the text of section 20.2 provides any explicit indication that
Owners who are Class A Members must personally cast ballots in favor of a proposed
amendment to the amended declaration. To reach that result, we would have to
incorporate such language into Section 20.2 ourselves, an exercise that the law of
contracts does not permit us to undertake. See, e.g., 19650 NE 18th Ave. LLC v.
Presidential Estates Homeowners Ass'n, Inc., 103 So. 3d 191, 194 (Fla. 3d DCA 2012)
("A court may not rewrite a contract to add language the parties did not contemplate at
the time of execution."); BMW of N. Am., Inc. v. Krathen, 471 So. 2d 585, 587 (Fla. 4th
DCA 1985) ("[W]here a contract is silent as to a particular matter, courts should not,
under the guise of construction, impose on parties contractual rights and duties which
they themselves omitted.").
The appellees point out that Rivercrest's original declaration provided for
approval of amendments to be effective upon the affirmative vote or written consent of
"Neighborhood Representatives representing at least 75% of the Association's total
Class 'A' votes." From there, they argue the change from a vote of the Neighborhood
Representatives in the prior declaration to a vote of the Owners in the amended
declaration must mean that the personal votes of Owners are required. We disagree
that the inference the appellees seek to draw is the sole inference one could draw from
this change. The amended declarations also expanded the right to vote from solely
Class A Members—whose votes are given by Neighborhood Representatives, unless
specifically provided otherwise—to both Class A and Class B members, the latter of
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which have no right to vote for Neighborhood Representatives under the amended
declaration. That could explain the change. But possible interpretations of the reasons
for the change are ultimately beside the point. The language of the amended
declaration is unambiguous, and reviewing courts do not consider extrinsic evidence for
the purpose of altering or varying the plain meaning of unambiguous contract terms.
See SCG Harbourwood, LLC v. Hanyan, 93 So. 3d 1197, 1200 (Fla. 2d DCA 2012)
(citing Jenkins v. Eckerd Corp., 913 So. 2d 43, 52 (Fla. 1st DCA 2005)).
The trial court's entry of a permanent injunction prohibiting the Association
from enforcing the lease restrictions rested on an erroneous interpretation of the
unambiguous language of the amended declaration. Accordingly, we reverse the
amended partial final judgment to that extent and remand the case to the trial court for
further proceedings consistent with this opinion. We dismiss this appeal to the extent
the Association seeks relief from the order denying summary judgment.
Reversed in part; dismissed in part; remanded.
NORTHCUTT and BLACK, JJ., Concur.
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