The group running the recreational
facilities at a Pembroke Pines retirement community won its
appeal of an attorney fees award stemming from a dispute
with a former condominium unit owner.
|
A Google Street View of the Century Village of Pembroke Pines retirement condominium community. |
McCormick — an affiliate of
Maryland-based Beltway Capital LLC fund that acquires real
estate loans identified for sale by financial institutions —
bought a unit through foreclosure in 2014 with plans to
sell.
In 2016, McCormick sued C.V.P. over an ongoing dispute
between the two over whether McCormick had to pay the
recreational facilities rent that the previous unit owner
hadn’t paid to C.V.P. McCormick’s Broward County Circuit
Court complaint was for breach of contract, declaratory
judgment and rent abatement for the time it owned unit 313T.
Broward County Circuit Court Judge Carol-Lisa Phillips
decided in favor of McCormick saying that under condominium
documents an institutional mortgagee who buys out a unit in
foreclosure isn’t on the hook for back rent for the
amenities, according to the appellate opinion.
Both sides then filed motions for attorney fees and
MPhillips on June 1, 2018, sided with McCormick and granted
its motion for prevailing party costs and attorney fees.
The $141,475 is for attorney fees as well as for costs and
expert witness fees to McCormick, according to the appellate
opinion.
C.V.P. appealed both the trial court granting McCormick
attorney fees and denying C.V.P.’s motion for attorney fees,
arguing that its long-term lease of the recreational
facilities and the declaration of condominium allow for the
award of these fees only to the lessors, management firms
and sponsors but not to institutional mortgagees like
McCormick.
In response, McCormick didn’t argue the condo documents say
otherwise but turned to a state law. Its says that if a
contract allows for the award of attorney fees to the party
that wins in enforcing the contract, then there should be
reciprocity in that attorney fees be allowed to the other
side if it wins. The state law applies to contracts entered
after Oct. 1, 1988.
The Century Village condo contracts were signed in 1984, or
before the state law threshold.
McCormick countered that the Century Village condo documents
were substituted and negated by the transfer of title
recorded when McCormick acquired the foreclosed unit,
meaning the state law applies.
The appellate panel disagreed with the case law McCormick
cited, saying it’s inapplicable, and also said condo
documents clearly say there are to be no amendments and no
new contracts are to be established.
The appellate panel also dismissed C.V.P.’s motion to
dismiss saying it’s untimely because post-judgment final
orders can be appealed within a month. The judges said they
don’t have the jurisdiction to address this.
McCormick sold the unit it bought in foreclosure in March
last year for $65,000, Broward County deed records show.