ROYAL PALM BEACH COLONY, INC., APPELLANT,
v.
GREENWAY VILLAGE SOUTH ASSOCIATIONS NO. 1, 2, 3, AND 4, INC., NON-PROFIT FLORIDA CORPORATIONS, A CLASS REPRESENTATION, HERBERT KAPLAN, MARTIN SAMUELS, MARTIN KATZ AND D.J. PANERALI, INDIVIDUALLY AND COLLECTIVELY, APPELLEES; ROYAL PALM BEACH COLONY, INC., APPELLANT, V. GREENWAY VILLAGE SOUTH ASSOCIATION NO. 1, INC., GREENWAY VILLAGE SOUTH ASSOCIATION NO. 2, INC., GREENWAY VILLAGE SOUTH ASSOCIATION NO. 3, INC., AND GREENWAY VILLAGE SOUTH ASSOCIATION NO. 4, INC., APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Royal Palm Beach Colony, Inc. appealed trial court orders granting summary judgment and dismissing its claims against condominium associations regarding enforceability of recreational lease escalation clauses tied to the consumer price index. The appellate court reversed, holding that genuine issues of material fact precluded summary judgment and that dismissal was improper because critical questions about statutory applicability and the parties' intent could not be resolved on the pleadings.
The trial courts acted prematurely and in violation of procedural law. Section 718.122(1) creates only a presumption of unconscionability that may be rebutted by additional facts and circumstances, so summary judgment was improper. On the motion to dismiss, the critical issue of whether the parties intended to be bound by future amendments to the Condominium Act could not be decided against Royal Palm Beach on the pleadings alone.
[1] A summary judgment is premature and in violation of procedural law when genuine issues of material fact exist that prevent a determination of judgment as a matter of law.
[2] A statute creating a presumption of unconscionability for certain lease provisions may be rebutted by additional facts and circumstances.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the summary judgment improperly determined that because the recreational lease appeared to contain all nine prohibited elements listed in Section 718.-122(1), Florida Statutes (1977), it was unconscionable as a matter of law, and no genuine issues of material fact remained. However, the statute creates only a presumption of unconscionability that may be rebutted upon a showing of additional facts and circumstances to justify and validate what otherwise appears to be an unconscionable lease.”
Establishes that unconscionability under the statute is rebuttable and not conclusive as a matter of law, requiring factual development.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceRoyal Palm Beach Colony developed a four-stage condominium project called Greenway Village South, with each stage becoming a separate condominium asso…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Action For Rent cases and more on FLexlaw
WALDEN, Judge.
The appealed orders in these consolidated cases effectively ended the litigation by granting summary judgment in one and granting motion to dismiss in the other. We are of the opinion that the trial court acted prematurely and in violation of procedural law; and thus, we reverse.
Appellant, Royal Palm Beach Colony, Inc., owned and developed a condominium project known as Greenway Village South. It was built in four stages. Each stage became a condominium association. As the project was completed it was turned over to the unit owners. Each Declaration of Condominium contained identical recreational leases. The appellees are the several associations.
Pursuant to the leases’ escalation clauses, appellant, Royal Palm Beach, increased the rent in accordance with the consumer price index. The appellees, the Associations, refused to pay.
The Associations sought declaratory relief and asserted that the escalation clauses were unlawful and unenforceable (Appeal No. 83-143). The trial court granted summary judgment in favor of the Associations based on a finding that the escalation clauses were void as a matter of public policy and hence were unenforceable. Royal Palm Beach appeals.
In the county court, Royal Palm Beach sued the Associations for rent pursuant to the escalation clauses. The trial court granted the Associations’ motion to dismiss based on a finding that the leases were contrary to public policy. Royal Palm Beach appeals (Appeal No. 83-197).
We are of the opinion that, according to Florida Rule of Civil Procedure 1.510(c), there were genuine issues of material facts which stood in the way of a determination that the Associations were entitled to judgment as a matter of law. (Appeal No. 83-143).
In summary and without unduly laboring it, the summary judgment improperly determined that because the recreational lease appeared to contain all nine prohibited elements listed in Section 718.-122(1), Florida Statutes (1977), it was unconscionable as a matter of law, and no genuine issues of material fact remained. However, the statute creates only a presumption of unconscionability that may be rebutted upon a showing of additional facts and circumstances to justify and validate what otherwise appears to be an unconscionable lease. Additionally, the summary judgment failed to address and to resolve several affirmative defenses raised by the appellant, in particular:
1. The statute of limitations operated to bar the proceedings.
2. The appellant had tendered full disclosure, thereby negating alleged unconscionable sales practices.
3. The various recreational leases were executed prior to the effective date of Section 718.401(8)(a), Florida Statutes (1981) which declared void as against public policy such rent escalation clauses.
As to Appeal No. 83-197, it is basic that the well pled allegations of a complaint are to be taken as true when faced by a motion to dismiss. The grounds for the motion to dismiss were these:
1. Whether pursuant to Section 718.122, Florida Statutes (1977) the recreational lease was facially unconscionable because it contained all nine elements which raise a presumption of unconscionability; and
2. Whether pursuant to Section 718.-401(8)(a), Florida Statutes (1981) the rent escalation clause was against public policy and therefore unenforceable. Applicability of the statute was effective only if the condominium documents adopted future amendments to the Condominium Act.
The complaint, without here reproducing it, clearly stated an action for rent so that the Associations’ defenses would necessarily have to be pleaded and proved. Critically, the issue was whether or not the parties intended to be bound by future amendments to the Condominium Act. This decision, in light of the allegations of the complaint, could not be decided against Royal Palm Beach upon motion to dismiss.
We reverse as to both appeals and remand for further proceedings consistent herewith.
REVERSED and REMANDED.
ANSTEAD, C.J., and DOWNEY, J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Paul v. Facchina, Jr., 735 So. 2d 499 (Fla. 4th DCA 1999)…it states a cause of action. The court takes all well pleaded allegations therein as true.”); Sovran Bank, N.A. v. Parsons, 547 So. 2d 1044 (Fla. 4th DCA 1989); Royal Palm Beach Colony, Inc. v. Greenway Village South Ass’ns No. 1, 2, 3, and I, Inc., 443 So. 2d 1034 (Fla. 4th DCA 1983); City of Hallandale v. Gulfstream Park Racing Ass’n Inc., 440 So. 2d 1328 (Fla. 4th DCA 1983); Nat’l Financing Corp. v. Weiche, 371 So. 2d 707 (Fla. 4th DCA 1979); and Wenner v. Foster, 336 So. 2d 1248 (Fla. 4th DCA 1976). Conseq…