More than three months
after a judge ordered the Boca View Condominium Association
to let a unit owner or her representative inspect the
property’s financial records, the condo board still hasn’t
opened its books and instead is challenging the ruling.
The association has filed an appeal of the Palm Beach County
circuit judge’s order.
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The bulk of the trial
focused on a provision of Florida’s Condominium Act that
requires associations to allow inspections of its records by
a unit owner “or” the owner’s authorized representative.
Boca View argued that the provision gave it the right to
determine which of the two gets to see the records.
Lepselter argued that the law clearly gives the unit owner
the right to choose.
On Feb. 22, 2019, Boca View’s property manager emailed
Lepselter to tell her that the association’s governing board
decided that she, and not Yellin, could inspect the records
the following Monday.
When Lepselter and Yellin showed up at the property
manager’s office, the property manager and later the
association’s treasurer informed the pair that only
Lepselter would be allowed to inspect the records.
Thus began a long and expensive fight over Lepselter’s
contention that the association broke the law by barring
Yellin from inspecting its records.
In the trial, the association argued that Yellin was a
“straw man” for a couple whose own record request was denied
after they transferred ownership of two units to an LLC they
had formed without the association’s approval. Yellin
previously represented the couple in a dispute with the
association.
Kastrenakes concluded the three-day trial by rejecting the
straw man argument and agreeing with Lepselter’s contention
that she had the right to designate Yellin to inspect the
records. “It’s ludicrous to believe otherwise,” the judge
said.
Further, he agreed with Lepselter that Florida’s condo law
barred associations from asking unit owners why they want to
see their records.
The October trial was itself an appeal by Boca View of an
arbitrator’s non-binding ruling in October 2019 that
Lepselter had the right to appoint Yellin to represent her
in the review.
The association had previously challenged an arbitrator’s
ruling in a separate records case that favored another unit
owner, Eileen Breitkreutz, who claimed she was denied access
to the records in 2016.
In challenging that ruling, the association sued Breitkreutz
personally.
In that case, the association won, and Breitkreutz was
ordered to pay legal fees accrued over six years of
litigation. Breitkreutz last year filed for bankruptcy,
saying she did not have the assets to cover the $395,544
judgment.
In the Lepselter case, Kastrenakes’ ruling makes Boca View
responsible for a large legal fee bill that the judge
predicted would rival what Breitkreutz was ordered to pay.
He predicted that a fight over the legal bill would last
months.
On Jan. 3, Boca View filed a motion asserting that it, and
not Lepselter, was entitled to attorneys fees because it was
actually the prevailing party in the October trial.
Boca View prevailed, the motion said, because the
arbitrator’s 2019 ruling stated that Florida’s Condominium
Act allowed a unit owner and the owner’s personal
representative to inspect records.
Kastrenakes determined that the arbitrator’s use of the word
“and” was a scrivener’s error and ordered the association to
make the records available to Lepselter or her designated
representative.
The distinction meant that the association “obtained a ‘more
favorable’ judgment [in the trial] than in arbitration” and
was entitled to attorneys fees “and further relief,” the
association argued.
No ruling has been filed on that legal fee motion. Because
Kastrenakes retired at the end of 2022, the dispute will be
overseen by Circuit Judge Carolyn Bell.
The association has not yet filed its argument to the
appellate court. But its 83-page Dec. 19 motion for a new
trial argued that the written final judgment filed by
Kastrenakes on Dec. 2 was prepared by Lepselter’s attorneys
and “included a number of statements that were not
attributable to the Court.”
The motion recounted arguments that Boca View aired during
the trial, including that Lepselter’s record request was
made in “bad faith” on behalf of the couple that transferred
their units to their limited liability corporation.
In denying Boca View’s motion, Kastrenakes noted that some
of the grounds cited in the motion “were not argued or
preserved at trial.” If they were, “the Court re-adopts and
re-affirms its previous trial court rulings.”
He also said, “the ‘Statement of Facts’ presented as a
header in [the motion] should in reality be labeled
‘Statement of Unproven Theories,’ as the grand conspiracy
theme ... was simply unproven rhetoric and largely
irrelevant.”
Following the judge’s denial, Becker & Poliakoff, which had
represented Boca View throughout the litigation, withdrew as
the association’s counsel, citing “irreconcilable
differences.”
John R. Sheppard Jr., attorney with the West Palm Beach firm
Fowler White Burnett, P.A., is now representing the
association.
Sheppard did not immediately respond to a request for
comment about the appeal.
Andrew Schwartz, one of two attorneys who represented
Lepselter at the October trial, said by email that the
attorneys are confident that “no error [by Kastrenakes] will
or can be demonstrated by Boca View.”