A Florida court has ruled that Eagle Palms Homeowners Association can both foreclose on a lien for unpaid assessments and seek damages for those assessments. This decision affects property owners in the Eagle Palms subdivision and clarifies the rights of homeowners associations in similar disputes.
The case, Haught, Whitburn, LLC v. Eagle Palms Homeowners Association, Inc., Hollagher Group, LLC, was decided by the District Court of Appeal of Florida on August 7, 2026. The court's ruling has implications for how homeowners associations can enforce payment of dues and manage financial obligations of property owners.
Background
The Eagle Palms Homeowners Association is responsible for managing a multifamily subdivision in Riverview, Florida. The dispute arose after the previous owners of a townhome failed to pay their assessments. In 2014, the Association obtained a foreclosure judgment against those owners. However, the sale was delayed due to the owners filing for bankruptcy. Eventually, the property was sold in August 2015.
Barry Haught purchased the property for $1,000 and transferred it to Hollagher Group LLC. Despite receiving rental income, Haught and his partners did not pay any outstanding assessments to the Association. In 2016, the Association filed a lawsuit against Haught and others for the unpaid assessments, claiming they were liable under the Declaration of Covenants and Restrictions and Florida law.
The Ruling
The court ruled in favor of the Eagle Palms Homeowners Association, stating that the Association is entitled to pursue both remedies: foreclosure and damages. The court referenced section 720.3085(1)(c) of the Florida Statutes, which allows an association to foreclose a lien for unpaid assessments and to seek a money judgment for those assessments.
The court stated, "The Association may bring an action in its name to foreclose a lien for assessments... and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien."
This decision affirms the trial court's judgment that awarded the Association $30,502.44 in damages, which Haught and his company were held jointly and severally liable for. The ruling was delivered by Judge Labrit, with Judge Morris concurring and Judge Atkinson dissenting.
Impact
The ruling clarifies that homeowners associations in Florida have the right to pursue multiple remedies when property owners fail to pay assessments. This means that associations can both foreclose on a property and seek damages, strengthening their ability to enforce financial obligations. The decision may influence how associations draft their declarations and handle delinquent payments in the future.
This ruling could set a precedent for similar cases across Florida, impacting how homeowners associations operate and the financial responsibilities of property owners. It highlights the importance of understanding both the governing documents of an association and applicable state laws.
What's Next
Haught and his associates may appeal the decision, although details on any potential appeal were not available in the court filing. Additionally, a related case involving Hollagher Group, LLC, has been filed under a separate appeal number.