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SCANNED VERSION STATE
OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF FLORIDA LAND SALES,
CONDOMINIUMS, AND MOBILE HOMES
IN
RE: PETITION FOR ARBITRATION
David B. Parker Petitioner, v. Case No. 2007-04-5781 East Linden Estates Homeowners Association, Inc.
Respondent. ___________________________________________________/ SUMMARY FINAL ORDER Statement
of the Issues The
issues presented in this election dispute are whether the results of an
election announced at the meeting noticed for the election may be changed by a
subsequent private recount, and, if not
what is the appropriate remedy. Procedural
History David Parker filed a Petition for Arbitration on August 10, 2007, challenging the action of the board members setting aside the results of the annual election of the board of East Linden Estates Homeowners Association (the Association). On August 20, 2007, the arbitrator entered an Order to Show Cause that required proof of prearbitration notice. After the filing of such proof, an Order Requiring Answer was entered on September 5, 2007. Respondent filed an Answer with copies of ballots, tally sheets and proxy/absentee ballots. Findings
of Fact
1.
The Association scheduled its annual election at a meeting on June 4,
2.
The Association, through "Ken Kral, Secretary/Treasurer",
sent written notice of the election to the parcel owners on or about May 1, 2007. That
letter stated the annual meeting and election would be held on June 4, 2007.
3.
The written notice gave the owners the option of attending the meeting
to
4.
Each proxy form consisted of a single page with the top half providing
5.
The procedure followed for the absentee ballots was to verify the
6.
The bottom halves containing the votes became indistinguishable other than for the marked votes. They were not numbered or tracked in any way, and,
so,
7.
On the night of the election, one person was responsible for counting
the absentee ballots. After votes by the persons attending the meeting, the
election was closed. Two people counted the in-person ballots. During the
meeting, another election committee member combined the subtotals and reported
them to the presiding director, Thomas Lyons. Patty Cafra 72 votes Gary Keller 72 votes Dave Parker 61 votes John Poffenberger 60 votes Ken Kral 59 votes 9. The election meeting came to a close with no challenge to the results or request for a recount.
10.
Despite announcement of the winning candidates, the new directors were
11. The
election materials then were sealed and delivered to Kenneth Kral,
12.
During the week after the election, Ken Kral, along with other
13.
After the "recount", Mr. Kral and other persons advised
Petitioner that the
14.
There is no evidence of a legal basis or Association procedure for the "recount".
15. Petitioner
has been prevented from serving as a director of the
Conclusions
of Law The
Division has jurisdiction over the parties and the subject matter pursuant to Sections
720.306(9), 720.311 and 718.1255, Florida Statutes. Section
720.306(9), Florida Statutes, governs election of directors for homeowners associations.
It provides: (9) ELECTIONS. - Elections of directors must be conducted in accordance with the procedures set forth in the governing documents of the association. All members of the association shall be eligible to serve on the board of directors, and a member may nominate himself or herself as a candidate for the board at a meeting where the election is to be held. Except as otherwise provided in the governing documents, boards of directors must be elected by a plurality of the votes cast by eligible voters. Any election dispute between a member and an association must be submitted to mandatory binding arbitration with the division. Such proceedings shall be conducted in the manner provided by s. 718.1255 and the procedural rules adopted by the division. Additionally,
section 720.306(2), F.S., provides, "The election of directors, if
one is required to be held, must be held at, or in conjunction with, the annual meeting or as provided in the governing documents." Based on that statute and the notice of the annual meeting provided by the Association, when the annual meeting of June 4, 2007 was over, the election of directors was final. In
this case the integrity of the ballots was impaired after announcement of the·
winners in the annual meeting of June 4, 2007. That night when the ballots
were handed over to the losing candidate they became tainted. By
the time the sun rose the next morning, no piece of paper possessed by that
candidate could be authenticated as evidence of a vote in the election. This
case presents an extreme example in which the losing candidate had produced
the original ballots. Because new ballots could so easily be substituted for
those from the annual meeting, it is
not necessary to allege that anyone actually did so. Because a slight
modification would dramatically change the result of the election, the
suspicion raised would undermine trust in any subsequent recount. The
"ballots" that became the subject of a "recount" could not
be admitted in a legal proceeding. The
Association has not submitted any authority to hold a recount. No law,
governing document or procedure provides for a recount under any
circumstances. Based
on the foregoing, it is ORDERED:
1.
That the Association shall seat Petitioner, David B. Parker, as a
director for the
position to which he was elected on June 4, 2007.
2.
That the Association shall immediately remove Kenneth Kral from the
board of directors, provided that he will be eligible to sit again if
elected or appointed according to DONE
AND ORDERED this 1st day of October, 2007, at Tallahassee, Leon Copy furnished to:
David B. Parker 12470 Winston Ct. Spring Hill, FL 34609
Robert
Tankel, Esq. 1022 Main Street - Suite D Dunedin,
FL 34698 |