Theft of Funds Not a Defense to Condo Assessments

11/12/2011 3:21 PM | Anonymous

Good afternoon and Happy Saturday,

This opinion is a few months old now, but I thought it was worth sharing because it highlights the risks of condo purchasing and ownership.  Long story short, certain members of the condo association had allegedly improperly depleted condo funds.  In order to maintain the association property (and essentially make up for the loss), the board passed a special assessment, and sought to foreclose on Coral Way when it refused to pay the assessment.  Coral Way defended the foreclosure action on the basis that the assessment was improper because it would not have been necessary had the association not improperly squandered funds in the association coffers.  The trial court disagreed and entered judgment in favor of the association.

The Fourth District Court of Appeal (Broward & Palm Beach Counties) agreed with the trial court and upheld the summary judgment of foreclosure.  In sum, although the association may have acted improperly in wasting association funds, the special assessment was properly done consistent with the governing documents, and because Coral Way was an owner, it was liable for the special assessment.

The entire case can be accessed here.



Paul H. Minoff
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