DALE J. JACKSON & PAMELA F.A. JACKSON, APPELLANT,
v.
THE PALMS OF PERDIDO, LLC & FIRST NATIONAL BANK OF FLORIDA, APPELLEE

Fla. 1st DCA | 2013-01-04
No. 1D11-6058
WETHERELL and MAKAR, JJ., and WALLACE, WADDELL, Associate Judge, concur.
107 So. 3d 446 Florida District Court of Appeal, First District (2013) Positive Treatment
Cited by 2 cases

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Synopsis

The Jacksons appealed summary judgment dismissing their breach of contract and statutory claims against The Palms of Perdido regarding a condominium purchase. The court affirmed dismissal of the contract claims but reversed the dismissal of statutory claims under Florida's condominium escrow protection statute, holding that pre-repudiation statutory violations remain actionable even if the buyer later wrongfully repudiates the contract.


Holding

The court affirmed summary judgment dismissing the breach of contract claims but reversed summary judgment on the statutory claims. The court held that pre-repudiation statutory violations under section 718.202 remain actionable and are not barred by the buyer's subsequent repudiation of the contract.


Headnotes

[1] A condominium purchaser's ability to pursue statutory claims for violations of funds protection statutes is not necessarily extinguished by the purchaser's subsequent rep…

[2] Summary judgment is precluded on statutory claims concerning the protection of condominium purchase funds when factual issues remain regarding whether the seller committe…

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Key Quotes

“The obvious purpose of section 718.202 is to protect purchasers under preconstruction condominium contracts from loss of their deposits should the developer fail to perform its contractual obligations.”

Establishes the protective purpose of the statute at issue

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Facts & Procedural History

The Jacksons entered into a preconstruction condominium purchase agreement with The Palms. The Jacksons later repudiated the contract on June 12, 2007…

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Opinion of the Court
PER CURIAM.

*447PER CURIAM.

This case involves a dispute over the construction and sale of a condominium unit. Appellants, Dale and Pamela Jackson (the “Jacksons”), appeal the trial court’s entry of summary judgment in favor of Appellee, The Palms at Perdido (“The Palms”) on their claims for breach of contract and violations of section 718.202, Florida Statutes. We affirm the trial court’s disposition of the Jacksons’ contract claims, but reverse as to the statutory claims.

The Jacksons assert that The Palms violated section 718.202, Florida Statutes, which governs the use and protection of funds deposited for the sale of condominium parcels thus rendering the contract voidable, entitling the Jacksons to return of their escrow deposit. First Sarasota Serv. Corp. v. Miller, 450 So.2d 875, 878 (Fla. 2d DCA 1984) (“The obvious purpose of section 718.202 is to protect purchasers under preconstruction condominium contracts from loss of their deposits should the developer fail to perform its contractual obligations.”). Their second amended complaint alleges that The Palms violated the statute through unlawful reimbursement of personal expenditures and withdrawal and use of interest earned on the escrow funds. Though not entirely clear, these allegations may support pre-repudiation violations on the part of The Palms. This factual issue precludes summary judgment on the Jacksons’ statutory claim.

We note that section 718.202 does not make clear how courts are to handle situations where a seller commits a statutory violation and a buyer later wrongfully repudiates the contract. No case is directly on point, but the general view seems to support the conclusion that pre-repudiation violations remain actionable. See Kaufman v. Swire Pac. Holdings, Inc., 836 F.Supp.2d 1320, 1327 (S.D.Fla.2011) (rejecting argument that purchaser cannot pursue statutory claim, despite refusing to close on unit, where statutory violation predated closing date); Daneri v. BCRE Brickell, LLC, 79 So.3d 91, 95 (Fla. 3d DCA 2012) (reversing entry of summary judgment on section 718.202 claim where question of default timing was disputed). We agree with this approach and hold that the Jacksons did not lose the ability to bring claims under the statute merely because of their subsequent repudiation, and the trial court erred in granting summary judgment as to the statutory claims.

At this point in the litigation, each party has obtained some relief in this Court; thus, both are a “prevailing party” for purposes of the reciprocal attorneys’ fee provision of their contract. Each is thus entitled to a portion of their respective appellate fees. See Great Sw. Fire Ins. Co. v. DeWitt, 458 So.2d 398, 400 (Fla. 1st DCA 1984); Philip J. Padovano, Florida Appellate Practice 439-40 (2011 ed.)

We therefore REMAND to the trial court to allow the Jacksons to pursue then-statutory claims to the extent they arise from actions that occurred prior to the June 12, 2007 repudiation, and for the trial court to fashion an appropriate appellate fee award upon the resolution of the statutory claims.

AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.

WETHERELL and MAKAR, JJ., and WALLACE, WADDELL, Associate Judge, concur.


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Citator

Cited By

  • Jackson v. THE Palms OF Perdido, LLC, 114 So. 3d 1135 (Fla. 1st DCA 2013)
    …lms of Perdido, LLC (“The Palms”), as the prevailing party in the underlying civil suit. The fee order was based on a final summary judgment in favor of The Palms, which this court recently reversed in part. See Jackson v. The Palms of Perdido, LLC, 107 So. 3d 446 (Fla. 1st DCA 2013). Therefore, we reverse the order granting attorney fees to The Palms. See Marty v. Bainter, 727 So. 2d 1124, 1125 (Fla. 1st DCA 1999) (“[A]n award of attorney’s fees and costs predicated on a reversed or vacated final judgment al…

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