Finally...Automatic Class Action Standing for Florida Homeowner Associations

Until 2008, Florida condominium associations had a distinct advantage over Florida homeowner associations as far as pursuing construction defect and financial claims on a class action basis. Basically, Florida condominium associations by court rule since 1977 had automatic standing to represent their owners as a class on matters of common interest. Florida homeowner associations, on the other hand, had no standing to represent their members as a class. Members of homeowner associations were relegated to bringing a traditional class action with individual members acting as class representatives on behalf of the members. The procedure for attaining class action status in a homeowner association context was cumbersome and time consuming.

The newly adopted Florida Rule of Civil Procedure 1.221 reads:

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How Was Your Money Attended to Pre-Transition?

Florida community associations are big businesses, with annual budgets for larger projects running into the tens of millions of dollars. At its inception to the point of transition to owner control (which usually is at least a couple of years), each association is operated by a board of directors appointed by the developer. During this "pre-transition" period, these developer-appointed directors are running the business of the association (collecting revenue, expending money, contracting for services, performing maintenance, establishing or waiving reserves, etc.). From the point each new owner closes on their unit or parcel, each is a shareholder and contributing member in the association.

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AIA Owner/Architect and Owner/General Contract Forms - Beware of Arbitration Glitch

AIA contract forms are popular for major community association repair contracts. Unfortunately, the AIA (American Institute of Architects), presumeably to shield architects from liability, long ago created an arbitration glitch in instances where the Owner/Architect and Owner/General Contractor Contract forms are being utilized for a given project. The glitch is that the Owner/Architect form prohibits the architect (absent the architect's agreement) from being joined in an arbitration proceeding between the owner and general contractor.

Where defects in the work are a result of both design and construction flaws, this glitch can create a major dispute resolution headache.

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Construction Warranty Rights for Unit Owners in Florida Condominium Conversions

Unit owners in Florida condominiums converted from preexisting apartment buildings have inferior rights and remedies to recover for construction defects as compared to the rights and remedies available to unit owners in new Florida condominiums. Unit owners in new condominiums have statutory warranty protection under F.S. 718.203 which extends from the developer, general contractor, subcontractor and suppliers and covers to some extent all improvements and systems interior and exterior.

With condominium conversions, there are no statutory warranties extending from the general contractor, subcontractor or suppliers. The developer can opt out of statutory warranties if the developer adequately funds converter reserves per F.S. 718.618. If the developer chooses not to fund reserves or does not fund adequate reserves, a statutory warranty from the converter developer per F.S. 781.618 does extend to the unit owners, however, until recently, it did not cover all improvements.

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Proving What Was On Major Rehab Projects

Every remedial project has the potential of causing damage to building components and personal property. It is typical to charge back the contractor for such damage. Remedial projects requiring work on both the common elements and unit interiors present special challenges in documenting such damage. Balcony slab rehab work on a hi-rise where the slab deterioration extends into the unit is a classic example. In order to complete the job, sliders may have to be removed, carpets or tile pulled up, draperies and window coverings removed and furniture moved. At the end of the job, all this needs to be replaced or reinstalled.

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Sarasota Herald Tribune - Banker Rethinks His Plea of Guilty

Sarasota Herald Tribune Continuing Media Series:  Mortgage Fraud and Victim Rights, comments by Alan E. Tannenbaum, Managing Partner, Levin Tannenbaum.

Sarasota attorney Alan Tannenbaum, who represents more than 100 Coast loan customers, convinced the 11th U.S. Circuit Court of Appeals in December that the borrowers were victims under the federal Crime Victims Rights Act.

Sarasota Herald-Tribune: Court Victory for Borrowers

Court Victory for Borrowers:  At stake is $3 million in restitution

 "It was the most favorable decision the victims could have hoped for", Tannenbaum said Friday.

Tannenbaum invoked the Crime Victims' Rights Act on behalf of 104 Coast borrowers.