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December 1, 1992 MEMORANDUM TO CLIENTS
CORPORATE OFFICER LIABILITY The Florida Third District Court of Appeals recently reaffirmed a corporate officer's potential liability to the public. The Court's decision was issued in the case of Scutieri v. Miller, 17 ____ So.2d ____, 17 FLW D2310 (Fla. 3rd DCA, October 6, 1992). Mr. Scutieri claimed that he was slandered. Mr. Miller and the other defendants were officers and directors of the Sunrise Point Condominium Association, Inc. Previously, Florida courts uniformly declared that a corporate officer may be personally responsible for his or her misdeeds. For example, a corporate officer who signs a check on an account with insufficient funds may be held personally liable for the amount of the check. The Third District Court of Appeals in the Scutieri decision has held that if the allegations of slander are proven, the fact that the slander was stated by a corporate officer while acting for the corporation does not insulate the speaker from personal liability. Rarely is there a valid personal claim against an association officer; however, the Scutieri decision reinforces the necessity for associations to confirm that their directors and officers' liability insurance is in good standing. The insurance should have appropriate limits and deductibles. FILING FEES AND COST DEPOSITS INCREASE
With the other legislative changes and new taxes effective this season, the Legislature authorized increases in court fees. For example, Circuit Court filing fees for Palm Beach County are now $201.00. This amount is more than twice the amount of a year ago. Other court and governmental fees have increased accordingly. Therefore, effective immediately cost deposits for association foreclosure actions must be increased to $450.00. The deposit is utilized to pay litigation costs, not attorney's fees. The firm will still seek reimbursement of all association payments from the defendant. We have not previously increased cost deposits. We regret the necessity to increase the cost deposits; however, the legislative pronouncements require the increase. BINGO
One of the last efforts of the 1992 Florida Legislature was passage of Chapter 92-280 Fla. Laws entitled "Bingo". This law adds a new statute tentatively numbered §849.0931 Fla. Stat. (1992 Supp.). The law restricts and regulates the type and method of operation of bingo games. Violating a provision of the new law constitutes a first degree misdemeanor for the first offense, and a third degree felony for each subsequent offense. The sponsors of bingo games are limited. Sponsors must be a charitable, not-for-profit or veterans organization qualified for Federal income tax exemptions under §501(c) of the Internal Revenue Code of 1954 or §528 of the Internal Revenue Code of 1986, which are engaged in charitable civic, community, benevolent, religious or scholastic activities, and which have been in existence and active for three years or more. An exception to the law allows games to be sponsored by condominium associations, mobile home owners' associations, or mobile home park residents. It is notable that the law does not allow bingo games to be sponsored by cooperative associations or other types of associations such as homeowners, property owners or country club associations. An organization may sponsor bingo games only two days per week. Those conducting games must be residents of the community in which the organization is located and a member of the organization. They may not be compensated for conducting the game. All players must be eighteen years of age or older. Though "objectionable or undesirable" people may be refused entry into the bingo game, there can be no discrimination on the basis of race, creed, color, religion, sex, national origin, marital status, or physical handicap. Games conducted by condominium associations, mobile homeowners associations, or mobile home park residents must be on property owned by the association, or on common areas. The law requires the games to follow many of the traditional rules of Bingo. Among some of the more particular rules: seats may not be reserved by an association for players not present; and, cards cannot be set aside. When a winner is determined, the bingo caller must ask, "Are there any other winners?" If no one replies, the game is closed. At that point no other player is entitled to share the prize unless he or she declared bingo prior to the announcement. OFFICE UPDATE The firm is pleased to announce its new Boca Raton location. To facilitate our client's needs, the firm is moving its Boca Raton location to: Compson Financial Center, Suite 311, 980 North Federal Highway, Boca Raton. The new address is anticipated to be effective January 2, 1993. CONDOMINIUM LAW PUBLIC WORKSHOP
A public workshop to discuss proposed amendments to the Condominium Act is scheduled for 8:00 a.m., December 2, 1992 at the Fort Lauderdale City Hall. The sponsor is The State of Florida Department of Business Regulation, Division of Florida Land Sales, Condominiums and Mobile Homes. Only 175 people can be seated in the meeting room; therefore, seats will be assigned on a first-come first-served basis. The meeting is scheduled for four hours. BEST WISHES FROM THE FIRM
FOR A PEACEFUL AND HEALTHY HOLIDAY SEASON.
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