A Florida court has made a significant ruling in a class action case involving homeowners against AV Homes, Inc. and Avatar Properties, Inc. The District Court of Appeal of Florida issued its opinion on February 21, 2020, regarding the certification of a class of homeowners living in the Solivita community. The court decided to certify a class for certain claims while limiting the scope of the class to current homeowners only, which has implications for both current and former residents.

The case, titled Norman Gundel, William Mann, and Brenda Taylor v. Av Homes, Inc. and Avatar Properties, Inc., was filed under docket number 2D18-3199. The court's ruling is essential as it addresses the legal rights of homeowners regarding mandatory membership fees and the governance of their community.

Background

The dispute began when Norman Gundel, William Mann, and Brenda Taylor, the residents of Solivita, filed a class action lawsuit against Avatar Properties and its parent company, AV Homes. The residents alleged that the companies violated Florida's Homeowners' Association Act and the Florida Deceptive and Unfair Trade Practices Act. They claimed that the fees imposed by the companies for mandatory membership in the community association and club plan were illegal and deceptive.

Avatar Properties developed Solivita, a retirement community in Polk County, Florida. The residents argued that the fees for the Solivita Community Association and Club Plan were excessive and that the marketing of these fees was misleading. The lawsuit gained traction after the developers proposed selling the club amenities to community development districts for a significant sum, raising concerns among homeowners about the fairness of the proposed sale.

The residents filed their amended motion for class certification after a previous ruling indicated that some claims could proceed. The lower court initially certified a class for four out of twelve claims, limiting the class to current homeowners who had paid club membership fees since April 26, 2013. The residents sought to expand the class to include former homeowners and additional claims.

The Ruling

The court ruled on the appeal regarding the class certification. It affirmed the lower court's decision to certify the class for counts II, V, VI, and VIII but reversed the decision to limit the class to current homeowners for count VIII. The court stated, "the lower court erred in narrowing the class to only current Solivita homeowners with respect to count VIII." This means that both current and former homeowners who paid club membership fees since the specified date can be included in the class for that particular claim.

The judges involved in the ruling were Judge Black, along with Judges Rothstein-Youakim and Atkinson, who concurred with the decision. The court found that the lower court acted within its discretion to limit the class for counts II, V, and VI but misapplied the principles regarding monetary damages concerning count VIII.

Impact

This ruling has significant implications for the residents of Solivita. By allowing former homeowners to join the class for count VIII, the court recognized that they also had a stake in the outcome of the claims related to the collection of fees. The decision may encourage more residents to participate in the class action and seek justice regarding the fees they paid.

The ruling also sets a precedent for how class actions can be structured in similar disputes involving homeowners' associations and mandatory fees. It emphasizes the importance of including all affected parties in class actions, particularly when monetary damages are involved. This decision could influence future cases where homeowners challenge the legality of fees imposed by developers or associations.

What's Next

The case is not over, as the lower court will need to implement the appellate court's ruling regarding the class certification. The residents can continue their claims against Avatar Properties, while the status of AV Homes remains unchanged. It is unclear if the defendants will seek further appeals regarding the ruling, but the current focus will be on how the class action proceeds with the newly defined class.