Historic ruling in Martin County favors residents of golf communities

Article Courtesy of TCPALM

By George Andreassi

Published February 12, 2008

STUART — Jayne and Anthony Granuzzo bought a home in the Willoughby Golf Club subdivision in 1995, even though they don't play golf.

So after their homeowners association merged with the golf club in 2003 and required them to pay more than $3,000 per year for club membership, as well as food and drinks in the club's restaurant, the Granuzzo's sued.

Last month, a state judge in Martin County Circuit Court ruled in favor of the Granuzzo's, voiding the merger and ordering the Willoughby Golf Club Inc. to refund the additional membership fees they were forced to pay.

The ruling in the Granuzzo case was the first in the state in which the homeowners association refused to allow the homeowners to opt out, got sued and lost, said Gary Poliakoff, a leading South Florida real estate lawyer who monitored the case, but was not directly involved. If homeowners resisted, they generally were allowed to opt out.

The case was the latest controversy involving the fate of golf course communities in Martin County and across the state as they try to cope with the loss of members and income.

"In order to support the golf, they wanted everybody to start paying, and that wasn't fair," Anthony Granuzzo said. "We're really not trying to play hardball with the whole thing. All we want is to be treated fairly."

It's a statewide trend for golf course communities to face financial difficulties as their members age and pass away, Poliakoff said. Earlier this year, Martin Downs Country Club sold its two golf courses and other facilities to a Wellington polo club developer.

Golf courses in planned communities are increasingly being bought for redevelopment as declining membership results in less money for maintenance and ultimately a decline in quality, Poliakoff said. Three golf course communities in Broward County have changed hands in the past year.

In response to the declining fortunes, some homeowners associations are looking for ways for all residents to share in the cost of preserving of the golf courses, such as requiring all homeowners to join the golf club, Poliakoff said.

Since the Granuzzo case, a similar ruling has been handed down in Lee County, Poliakoff said. He expects the issue to be presented to an appellate court, or the state legislature, or both.

A lawyer for the Willoughby Golf Club could not immediately be reached for comment.

But homeowners in golf course communities who refuse to join the golf club might wind up hurting themselves in the long run if the golf course winds up redeveloped into residences, Poliakoff said.

"You win the battle and you lose the war," Poliakoff said. "The lot owner who doesn't want to be compelled to join, that right is going to be honored, but the golf courses are going to continue disappearing."

But Anthony Granuzzo said he is happy he and 12 other homeowners stood up for their rights and fought against the requirement they pay more than $3,000 for amenities they do not use.

"They just shoved it down our throats and said, 'No, you have to be a member,' without any consideration for the family homeowner," Anthony Granuzzo said. "When they did all this, if they (excluded) us, like we requested they do, none of this would happened. They just said, 'This way going be and that's it.' That was the unfair part of it all."

GOLF CURSES OWNERS FIGHTING MANDATORY MEMBERSHIP

COURT OPINION: WILLOUGHBY GOLF CLUB. INC.