STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF FLORIDA CONDOMINIUMS, TIMESHARES AND MOBILE HOMES IN RE: PETITION FOR ARBITRATION ORCHID SPRINGS VILLAGE NO. 200, INC., Petitioner, v. Case No. 2014-00-9557 ALICE JOHNSTONE TURNER, n/k/a ALICE REHER, by and through ALICE JACKIE TURNER, Respondent. / SUMMARY FINAL ORDER On March 5, 2014, Petitioner, Orchid Springs Village No. 200, Inc. (the Association) filed a petition for non-binding mandatory arbitration against Respondent for violating the Association s governing documents by failing to get the Association s approval to lease her unit. Title to the unit is in a trust administered by Respondent. The petition alleges Respondent failed to have prospective lessees complete an application for rental, pay the $25.00 application fee and meet with members of the board of directors prior to taking occupancy of the unit. On March 11, 2014, an Order Requiring Answer was issued to Respondent and on April 7, 2014, Respondent answered. On April 18, 2014 and July 11, 2014, case management conferences were held and counsel for the Association and Respondent pro se, attended.
Findings of Facts 1. Orchid Springs Village No. 200, Inc. (the Association), is the governing entity over Orchid Springs Condominium with the responsibility to operate the condominium and to provide management and maintenance for the Association s property. 2. The address of the unit in question is 200 El Camino Drive, Unit #201, Winter Haven, Florida and Respondent is a member of the Association. 3. Section 18(b) of the Declaration of Condominium Ownership of Orchid Springs Village No. 200, a Condominium provides, a condominium parcel shall not be leased or rented without the prior written approval of the Association. 4. Article X of the Bylaws for the Association, at House Rule Number 10, provides: Approval of the Board of Directors is required for any new resident. Prospective residents must complete an application, pay the $25.00 non-refundable fee, and meet with a minimum of three (3) board members for approval or rejection. 5. There have been three successive tenants in the unit. 6. On or about March 20, 2012, a relative of Respondent moved into the unit without completing an application, paying the application fee or meeting with the board members. The board by letter dated March 20, 2012, reminded Respondent of the Association s approval process which must be completed prior to the occupancy of units in the Association. 7. On or about April 9, 2012, a friend of Respondent s moved in the unit without completing an application, paying the application fee or meeting with members of the board. The board by letter dated April 9, 2012, again reminded Respondent of her obligation to get prior approval from the board before leasing the unit. After the fact, 2
Respondent submitted an application on behalf of her friend but did not remit the application fee. 8. On or about December 11, 2013, a third tenant moved into the unit without having submitted an application, the application fee or meeting with the board of directors. 9. By letter dated December 11, 2013, the Association sent Respondent a third reminder of the rental process. This third tenant did, after moving in, tender the application fee and the application to the board. However, he never met with the board. 10. Respondent never received written authorization from the board to allow the tenants to occupy her unit. Conclusions of Law The Division has jurisdiction over the subject matter and the parties to this dispute pursuant to section 718.1255, Florida Statutes. This Summary Final Order is issued pursuant to section 61B-45.030(3), Florida Administrative Code, which authorizes summary disposition in any dispute any time after the filing of the answer, if no disputed issues of material fact exist, and if the arbitrator finds that the petition is otherwise appropriate for relief. The Association s prayer for relief was an order enjoining Respondent in the future from moving tenants into her unit without first submitting an appropriate application pertaining to the tenant, with the requisite application fee and having been granted permission in writing, by the condominium board to move into the unit. Two case management conferences were held with counsel for the Association and Respondent appearing pro se. Respondent said she allowed her relative to move into the unit because it was twice burglarized while vacant and she felt it safer to have the unit 3
occupied rather than be left vacant. Respondent also wanted her relative to help with the expenses of maintaining the unit which she did by paying the maintenance fees. During the next period of vacancy after the relative moved out. After the relative moved out the unit fell into disrepair. Then Respondent allowed a friend to move into the unit with the understanding that the friend would care for the unit, repair parts of it, pay the association fee and part of the warehouse fee for storage of the furniture previously used in the unit. Respondent said she never thought of her tenants as paying rent for living in the unit. After the friend vacated the unit the third tenant rented the unit for his grandmother. Respondent and the third tenant agreed that on behalf of this grandmother, he would complete an application and have it returned by the time his grandmother was ready to move into the unit. He belatedly did so and paid the $25.00 application fee but failed to meet with the board. Recently, Respondent has put the unit up for sale. Despite the fact that Respondent did not consider the first two occupants as tenants or renters, numerous prior arbitration cases have broadly applied the word tenant to include friends, family members and other occupants whose right to occupy a unit exists in the absence of a formal lease or rental agreement. Vantage View Condominium Association, Inc. v. Banak, Arb. Case No. 2013-00-7784, Final Order of Dismissal (March 5, 2013); Sand Pebble Point I Condominium Association, Inc. v. Fishel, Arb. Case No. 2013-00-2809, Order Requiring Amended Petition Naming Tenant(s) (February 5, 2013); Tanglewood Mobile Home Village Condominium Association, Inc. v. Bagley, Arb. Case No. 2012-01-0358, Final Order of Dismissal (March 14, 2012). This broad application of the word tenant occurs frequently and is appropriately used here to describe the first two tenants who lived in Respondent s unit. Without question, the third occupant was a renter 4
whose occupancy was dependent on Respondent s securing written approval from the Association. None of Respondent s explanations raise a defense to the allegation that she violated the terms of the governing documents. In every instance, the tenant had a monthly monetary obligation to Respondent related to keeping the unit current in its monetary obligation to the Association. Whether Respondent formalized her relationship with the tenants by written leases or agreements, or whether she believed the tenants were there to keep the unit safer from burglaries, or as a means to keep the unit in reasonably good repair is irrelevant. The tenants were expected to occupy the unit for some indeterminate period of time as members of the community, with access to all of the amenities offered by the Association. The primary object of an association is to operate and maintain its property on a mutual and cooperative basis for the housing needs of its members. Smith v. Edgewater Condominium Association, Inc., d/b/a Edgewater Beach Towers Condominium, Arb. Case No. 94-0216, Arbitration Final Order Determining Liability (January 12, 1995). The Association has a very legitimate interest in screening potential residents in order to protect the property and its inhabitants. Horizons West Condominium Number 1 Association, Inc. v. Stone and Roldan, Arb. Case No. 95-0364, Final Order (March 27, 1996). If Respondent disagreed with the Association s attempt to have her comply with the rental process, ignoring the problem and continuing to violate the documents was not an appropriate response. Id. Accordingly, the undersigned is granting the relief requested by the Association. It is Ordered that: 5
Respondent shall before allowing an tenant to move into her unit, abide by the Association s governing documents which outline the procedures for gaining the approval of the board of directors to rent or lease units by specifically providing the board with an application to rent, tendering the appropriate application fee, having the potential tenant meet personally with designated members of the board and receiving written approval from the board to allow the occupancy to proceed. Florida. Done and Ordered on this 17 th day of July, 2014 at Tallahassee, Leon County, Leah A. Simms, Arbitrator Department of Business and Professional Regulation Arbitration Section 1940 North Monroe Street Tallahassee, Florida 32399-1030 Telephone: (850) 414-6867 Facsimile: (850) 487-0870 Trial de novo This decision shall be binding on the parties unless a complaint for trial de novo is filed in accordance with section 718.1255, Florida Statutes. Certificate of Service I hereby certify that a true and correct copy of the foregoing Summary Final Order has been sent by U.S. Mail to the following persons on this 17 th day of July, 2014: Rex Cohen, Esq. P.O. Box 857 Winter Haven, FL 33882-0857 Attorney for Petitioner Jacqueline Turner 745 Avenue D, S.W., 6
Winter Haven, FL 33880 Respondent Leah A. Simms, Arbitrator 7