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Articles Posted in Firm News

MichaelHymanThe firm’s Michael L. Hyman authored an article that is featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Ruling: Community Associations Can Take Owners to Court Without Completing Arbitration,” discusses how Florida law calls for associations to file for nonbinding arbitration with the state agency that regulates condominiums prior to going to court.  Michael notes that the law, which is designed to relieve Florida’s courts from routine disputes between community associations and their unit owners, certainly does not mean such arbitration proceedings under the Department of Business and Professional Regulation’s Division of Condominiums must completely run their course prior to seeking emergency relief in local circuit court, as a recent ruling by the state’s Fourth District Court of Appeal reaffirmed.  His article reads:

. . . In Aquarius Condominium Association v. Boris Goldberg, the owners of a unit refused to grant the association’s contractor access to their residence for the purposes of initiating a balcony renovation project as part of a mandated 40-year recertification for the property. In response, the association filed a petition for arbitration with the Division of Condominiums, Timeshares and Mobile Homes as prescribed under Florida law. On the very same day, it also filed an “emergency motion to abate arbitration and temporarily relinquish jurisdiction” in Broward County circuit court against the unit owners to seek injunctive relief to secure immediate access to the residence.

dbr-logo-300x57Apparently in light of the emergency court proceedings over the injunction, the arbitrator with the state agency abated the matter for three months and noted that the association would need to file a status report or the arbitration petition would be dismissed.

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GaryMars-200x300An article authored by the firm’s Gary M. Mars was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Questions Revealed by Ruling Over W Hotel Amenities Require Legislative Fix,” focuses on a recent ruling by the state’s Third District Court of Appeal that calls into question the legal framework for many Florida condo-hotels.  The appellate panel ruled in favor of an Icon Brickell condominium owner’s claim that the property’s declaration broke state law by giving ownership and control of shared facilities to the owner of the W Miami Hotel.  Gary writes that the decision signals the need for Florida’s lawmakers to consider legislative amendments to the state’s condominium laws specifically addressing the authority over common elements at condo-hotel properties.  His article reads:

. . . The 50-story Icon Brickell Tower 3 includes the 148-room W Miami, formerly the Viceroy Hotel, in addition to 372 condominium residences. New Media Consulting LLC, the owner of one of the units in the building, filed suit in Miami-Dade Circuit Court in 2018 against the building’s condo association alleging the property’s declaration of condominium gave the owner of the W Miami Hotel too much authority in violation of the Florida Condominium Act.

dbr-logo-300x57The plaintiff prevailed in the trial court via a summary judgment, which concurred that parts of the property’s declaration broke state law by giving ownership and control of the shared facilities to the hotel owner. The ruling essentially ordered the association to amend its declaration in accordance with state law, notwithstanding the fact that changing condominiums’ governing documents typically requires prior approval by a daunting super majority (usually 2/3 or more) of associations’ entire voting membership.

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Michael-Hyman-srhl-lawAn article authored by the firm’s Michael L. Hyman was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Injunction Petition Against Ornery Condo Resident Sends Important Message,” focuses on a recent petition for an injunction stemming from pre-pandemic confrontations between a current and a former community association board member.  Michael writes that the case illustrates how associations and their directors should proactively address bellicose residents.  His article reads:

. . . The initial incident that led to the petition for the injunction, which was granted by the circuit court but eventually overturned on appeal, took place at a Broward County condominium in December 2018. That was when Patrick Gagnon, a member of the community’s board of directors, was accosted by prior board member Joseph Cash. A second incident later in the same month involved Cash allegedly yelling at Gagnon, calling him a liar and cursing at him.

dbr-logo-300x57Two months later in February 2019, Gagnon alleged that Cash confronted him two times, 45 minutes apart, yelling and cursing about new trees installed by the association that blocked the view from his condominium.

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Jeffrey-Berlowitz-Siegfried-law-firm-200x300An article by firm shareholder Jeffrey S. Berlowitz was featured as the expert guest commentary column in the Business Monday section of today’s Miami Herald.  The article, which is titled “Community Associations Must Cope with a Coming Wave of Unit-Owner Bankruptcies,” focuses on how associations must be prepared to contend with an expected spike in bankruptcy filings by those who lost their jobs and businesses due to the pandemic.  His article reads:

. . . Even with the massive COVID-19 economic fallout, bankruptcy filings in 2020 so far trail those from last year, thanks in large part to the federal stimulus package and state moratoriums on foreclosures and evictions. The additional $600 per week in supplemental unemployment assistance, on top of the national average state unemployment benefit of $340/week ($275 per week maximum for up to 12 weeks in Florida), meant that many individuals who lost their jobs were suddenly receiving more money than when they were working.

MHerald2015-300x72This supplemental federal benefit expired in July and was replaced by an allocation from the Federal Emergency Management Agency for $300 or $400 per week, depending on states’ participation and contributions, which was paid retroactively from August 1 for up to six weeks. With no more federal aid apparently forthcoming, economists predict consumer bankruptcy filings are bound to rise.

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Nicole-Kurtz-2014-200x300An article authored by the firm’s Nicole R. Kurtz is featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Recent Arrests for Community Association Theft Illustrate Laws Working, Associations Must Do Their Part,” focuses on several recent incidents of embezzlement at Florida community associations, and it discusses the impact of the 2017 changes to the Florida laws to add teeth to condominium fraud and enforcement measures.  Her article reads:

. . . In Kissimmee, Florida, the second arrest of a former HOA property manager was covered as part of a series of investigative reports by WFTV (Channel 9, ABC). The reports chronicle how Sherry Raposo, who had previously been arrested on charges related to having her ex-cop-turned-felon boyfriend patrol the Turnberry Reserve community and using the HOA’s funds to bail him out of jail in North Carolina, was arrested yet again on new charges of fraud involving the accounts she oversaw while serving as a property manager for the community. The station also uncovered similar allegations of embezzlement against her from a different community in Seminole County, leading to the possibility of another investigation into Raposo and thousands of dollars that were moved from that HOA’s bank account.

dbr-logo-300x57Theft by a former property manager at the tony Parkshore Plaza condominium tower in downtown St. Petersburg also made headlines recently in the pages of the Tampa Bay Times daily newspaper. The report indicated that Abby Elliott was found guilty and had been sentenced to two years in prison for using the condo association’s funds to pay for vacations, airfares, salon treatments and other personal expenses.

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Laura-Manning-Hudson-Gort-photo-200x300An article by firm partner Laura Manning-Hudson is featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Signs, Signs Everywhere: It’s Time for Community Associations to Address Sign Policies,” discusses recent news reports from around the country that are indicative of an uptick in disputes within HOA communities involving homeowners’ yard signs.  Laura writes that today’s polarized political environment and social movements combined with widespread societal cabin fever caused by the pandemic have seemingly created a perfect storm for tempers to ignite over political and solidarity signs, and she offers helpful suggestions for how HOAs should respond.  Her article reads:

. . . In Macomb Township, Michigan, a couple has been quoted in a local TV report alleging they were singled out by their HOA to remove their Black Lives Matter signs while the association seemingly permitted their neighbors to post other similar signs supporting politicians and local schools.

psignsReports involving HOA disputes over BLM signs also made local TV and newspaper headlines in late July in the San Francisco bay area and New Albany, Ohio, where an HOA issued an apology to its residents after it posted a deadline for the specific removal of BLM yard signs on its social media pages.

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CSantisteban-200x300An article authored by the firm’s Christyne D. Santisteban is featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Tennis Court Argument Snowballs Into $7M Federal Discrimination Suit Against HOA,” discusses how associations must be prepared to address and resolve disputes among unit owners over shared amenities and other matters by using a set process that typically includes letters from the association’s attorney, impartial board/committee meetings and hearings, and possibly also reasonable fines and suspensions.  Otherwise, these skirmishes could snowball into potentially dangerous confrontations that may expose associations to severe legal and financial liabilities, as a recent federal lawsuit with shocking allegations of discriminatory conduct illustrates.  Her article reads:

. . . The recent suit involves allegations of horrid discriminatory conduct and statements against homeowners Jeffrey and Deborah LaGrasso at the Seven Bridges community in Delray Beach, Florida. It seeks $7 million in compensatory and punitive damages from the community’s HOA and Rachel Aboud Tannenholz, who allegedly engaged in harassing behavior that included phone calls, text messages, personal visits to the plaintiffs’ home, and discriminatory posts on Facebook. dbrlogo-300x57The suit alleges the HOA and Tannenholz violated the federal Fair Housing Act by inflicting discriminatory behavior based on the LaGrasso’s religion and intentionally causing them emotional distress.

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Michael-Hyman-srhl-lawFirm shareholder Michael L. Hyman authored an article that is featured as the “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Ruling Exposes Perils of Overzealous Buyer Screenings by Community Associations,” focuses on a recent ruling illustrating how associations that go too far in their screenings of prospective new buyers and tenants could face legal consequences.  His article reads:

. . . The recent ruling ordered a Marco Island condominium association to stop its unreasonable screening practices, and the case made local headlines in the pages of the Naples Daily News.

David Mech, a prospective buyer at the Crescent Beach Condominium, sued the condominium association in December and represented himself in the case without the benefit of legal counsel. He alleged that he walked away from his $425,000 all-cash offer to purchase his dream condominium unit because he refused to comply with the associations’ request to provide his last two annual tax returns for himself and Katarina Palijusevic, who planned to invest in the unit with him.

“There’s no reason for them to know the total income for people,” he states in the newspaper article. He believed the financial screening requirement was unjustified and just “plain nosy,” so he walked away from his opportunity to acquire the Marco Island condo. “Do I really want to live in a building that has that type of board? That’s really an issue to me,” he stated.

dbr-logo-300x57The Collier County court judge ruled that the board’s blanket policy requiring new buyers to produce personal tax returns was “patently unreasonable.” The judge awarded Mech his legal costs and is yet to determine the final award. Mech claims that he lost approximately $4,000 just from his early withdrawal from his apartment lease in Irvine, California, prior to being informed of the tax return requirement.

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Maryvel-De-Castro-Valdes-002-200x300An article authored by firm shareholder Maryvel De Castro Valdes is featured as the “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Ruling Proves Community Associations Need to Revise Own Governing Documents,” focuses on a recent ruling by Florida’s Third District Court of Appeal that added to the growing string of decisions in recent years illustrating how an old and outdated provision in HOA and condominium association declarations is preventing some communities from collecting what they would be owed under the current state law from purchasers in foreclosure actions.  Her article reads:

. . . The ruling came in the case of Old Cutler Lakes by the Bay Community Association v. SRP SUB, LLC. The LLC took title to a unit within the community via a mortgage foreclosure auction and subsequently filed an action for declaratory relief seeking to determine its liability for the association assessments that accrued prior to acquiring title.

dbr-logo-300x57While Florida law holds that a parcel owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title, including by purchase at a foreclosure sale, the LLC was apparently well aware that the association’s declaration contained a provision that essentially extinguished its liability for the past-due assessments owed by the previous owner.

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RobertoBlanch_8016-200x300An article authored by firm shareholder Roberto C. Blanch was featured as the HOA View expert guest commentary column in the Business Monday section of today’s Miami Herald.  The article, which is titled “HOAs, Condo Boards Should Brace for a Slowdown in Dues and Tread Carefully,” focuses on the strategies that community associations should deploy in response to the financial strains created by unit owners who become unable to pay their monthly dues.  His article reads:

. . . As they begin to consider their options, some associations are now giving thought to relaxing their collections by waiving late fees and interest on delinquencies, and perhaps also foregoing entire monthly payments for those who become unable to pay due to the economic standstill. While this may appear to be a reasonable response, association directors must not lose sight of the fact that they are fiduciarily obligated to pursue the uniform collection of all payments and delinquencies, so they may be limited in their ability to offer any special considerations or concessions for those experiencing financial difficulties.

Payment waivers for the economic casualties of the COVID-19 pandemic could also open the door to future requests by unit owners for similar concessions related to other financial setbacks.

MHerald2015-300x72Instead, associations could borrow a page from the playbook of previous economic downturns and consider sanctioning a uniform payment plan to assist owners who become delinquent. With the help of qualified legal counsel and financial professionals, they could create a payment plan that is uniformly available to assist all the unit owners who suddenly become unemployed.

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