Gelfand & Arpe, P. A.


August 1, 1997


MEMORANDUM TO CLIENTS
COVENANT ENFORCEMENT: ACT NOW OR LOSE LATER

There is a problem. It is obvious. No one responds. Nothing happens. Finally someone decides it is a problem. A year has passed. Procrastination may appear to be a natural reaction to the problem. Many volunteers hesitate to take action against neighbors; however, the consequence for waiting too long may be that the problem becomes permanent. This consequence is especially important for associations.

The key question is how long is too long? The legislature has not set a deadline for when associations must seek to enforce covenant violations other than general statutes of limitations See §95.11 Fla. Stat. (1997). Until recently the only guideline for when an association may enforce a covenant was the decision in Plaza del Prado Cd'm. Ass'n., Inc. v. Richman, 345 So. 2d 851 (Fla. 3rd DCA 1977). In the Richman decision Florida's Third District Court of Appeal held that it was not proper for an association to delay enforcing a covenant for twelve months.

The Richman decision did not answer the ultimate question. The decision only held that twelve months was too long. The Court did not state the maximum amount of time an assocation can delay enforcement. Caution was urged because generally courts disfavor covenant enforcement litigation. Courts do not want to enter injunctions which require the court to monitor whether an order is being enforced. Thus, when an association requests that a covenant be enforced generally the court will look to see if the violation is so important to justify an injunction.

Recently the Fourth District Court of Appeals located in Palm Beach County addressed this issue in Mora v. Karr, _____ So. 2d _____, 22 Fla. Law Weekly D1522 (Fla. 4th DCA, June 25, 1997). Mr. Mora agreed to waive his right to enforce two use restrictions which could have prevented the Karrs from tearing down their home and building a larger residence. Despite the waiver agreement and after the Karrs demolished the home and started construction, Mora filed suit seeking to enforce the covenants and stop the work. Apparently faced with the contradiction that he waived the covenants, another neighbor, the Moores, joined the lawsuit. The Moores were represented by Mr. Mora's attorney; however, they apparently were not obligated to pay fees to the attorney.

The trial court denied Mr. Mora and the Moores' request for a temporary injunction to enforce the covenants. The appellate court affirmed the trial court's refusal to grant a temporary injunction. Concerning the Moores, the appellate court held that:

The fact that they delayed seeking relief until eight or nine months after construction commenced would warrant denial of injunctive relief for a violation of restrictive covenants.

(Emphasis added, citations omitted). Thus, the Moore's delay in seeking relief was fatal to the Moores enforcing the covenants.

If the Mora decision is followed, then the time for filing suit to enforce a covenant is drastically reduced. Again, the Mora court did not specify the absolute deadline for bringing a claim; however, the manner in which the Moore claim was disposed reflects that an eight month delay may be fatal to a case.

The practical effect is to require associations to promptly evaluate covenant violations. If a violation exists, then an association or an owner must take prompt action to enforce the violated covenant. Generally a comment or a polite note will do. If not, then the association should consult with counsel to ensure that the time for taking action does not pass.


ASSOCIATION LIABILITY FOR CONTRACTORS' INJURED EMPLOYEES AND SUB-CONTRACTORS: PART III

The firm's May 1993 and July 1993 Memorandum to Clients discussed how associations may be liable for injuries sustained by sub-contractors' employees. The recent appellate decision of Rabon v. Inn of Lake City, Inc., _____ So. 2d _____, 22 Fla. L.Weekly D1304 (1st DCA, May 22, 1997), requires owners who have contractors on their property, including associations, to revisit this issue. Liability is expanded!

In Rabon a security guard working for a security company which was acting as a independent contractor at a motel was injured. The injured security guard was paid workers' compensation benefits by the security company. The security guard filed a lawsuit against the motel, and the motel defended claiming it was immune under the workers' compensation statutes.

The appellate court stated that to be included within the definition of "statutory employer" under the workers' compensation laws and therefore immune from a civil lawsuit, a party must show that it was engaged in performing "contract work" and that it sublet a part of the contract work to another party. The appellate court concluded that the motel's duty to maintain safe premises did not arise from a contract; rather, the obligation was imposed by common law. Thus, the motel was not immune from civil liability and could be sued by the contractor's employee.

Associations often hire third parties to perform certain work. In such situations associations are "contractors". If an association undertakes work as part of a contractual obligation to its members and the association sublets a part of the work to another party, then the association may be protected by the workers' compensation laws from a civil lawsuit. In what instances association's obligation to its members arises out of a contract with its members is still unclear. If the duty is imposed by a declaration of covenants or condominium, then the declaration may be deemed a contract and the association deemed a "statutory employer".

However, one appellate court held that when an association as a contractor has a statutory obligation to its members, such as maintaining common areas pursuant to the Condominium Act, a condominium association cannot exempt itself from liability to a sub-contractor's employee. Woods v. Carpet Restorations, Inc., 611 So. 2d 1303 (Fla. 4th DCA 1992) (see the firm's May 1993 Memorandum to Clients). Accordingly, it is still important for associations to reduce their liability as a contractor by including in its contracts with others provisions which require subcontractors to carry workers' compensation insurance, which relieve associations from liability from claims that are otherwise covered by the sub-contractors' workers' compensation insurance, and which require the sub-contractor to indemnify the association for any claims brought against the association.



This information is provided only for public information purposes and is provided without obligation or fee. It is distributed to the firm's association clients to provide a general notice of recent changes in the law. This information is not to be considered as legal advice. The changes in the law may not been reviewed by Florida courts and may be subject to challenge. Before taking any action you are urged to consult with counsel to ensure that your legal rights are being protected.


© 1997 by Gelfand & Arpe, P.A.