Bad events can result in good lessons. Many associations, both vertical condominiums and horizontal attached townhome communities, suffer through water leaks not detected because homes are not occupied. Nevertheless, after the water has been removed, associations learn from the situations.

Increasingly, to avoid or limit damage, Florida associations are adopting rules regulating vacant units. Rules may require owners to have their units regularly inspected, to shut off water heaters and master valves before vacating, and to set air conditioners at a temperature to prevent mold. By proceeding through proper rule making, not only do communities reduce the potential of water related damages, but communities may also shift the responsibility to pay for damage to a unit owner who fails to comply with the rules!

There are many rules that an association can adopt to protect units and association property, of course dependant upon the association= s authority in the community= s A governing documents.@ Owners should regularly inspect water supply systems. Aging equipment should be replaced before catastrophically failing. Of course, all rules regulating use in a unit or on a lot must be adopted by a board of directors at a properly noticed meeting which usually requires fourteen days notice to owners.

Please consult with your association counsel to determine what regulations are appropriate for your community.

What documents qualify as part of the Association= s official records? Can an association discard documents addressing the association= s business if the documents seem unimportant?

A Florida appellate court recently ruled that a memorandum to file was considered a public record. In Miami Herald Media Company v. Sarnoff, 33 Fla. L. Weekly D 24 (Fla. 3^rd DCA, December 19, 2007), a city commissioner prepared a memorandum to the file summarizing the details of a telephone conversation with a former public official regarding city affairs and alleged criminal activity.

The Miami Herald submitted a public records request seeking a copy of the memorandum. The trial court found that, although the commissioner prepared the memorandum to reflect a conversation that occurred in his capacity as a public official, the document was created for personal use and did not fall within the meaning of a public record.

The appellate court disagreed with the trial court. The appellate court referred to Florida= s Public Records Act, Section 119.011(11) Fla. Stat. (2007), which states that a public record is defined as A all documents, ... regardless of the physical form [or] characteristic ... made ... in connection with the transaction of official business by any agency.@ As such, any material prepared in connection with official agency business which is intended to perpetuate, communicate, or formalize knowledge of some type is part of the public record.

This decision may be significant to associations as it provides, by analogy to similar laws, a guideline for an association to use regarding what documents should be retained as the association= s official records. If a document prepared by the Association pertains to the association= s official business and is intended to communicate knowledge regarding the association= s business then the document is part of the association= s official records and must be retained.

PUNITIVE DAMAGES: THAT= S OUTRAGEOUS!!!

Can a Florida corporation be forced to pay punitive damages for an injury arising from a failure to repair a potentially dangerous area of the community? The answer depends on how bad was the association= s conduct.

In a decision that is instructive for Florida= s condominium and homeowners= associations, a Florida appellate court recently held that a country club could not be held liable for punitive damages arising from an injury where the country club did not show willful and wanton misconduct with regard to the injury. In Tiger Point Golf and Country Club v. Hipple, 33 Fla. L. Weekly D 33 (Fla. 1^st DCA December 20, 2007), a man was injured when a corroded handrail fell on his foot while he was removing the handrail. The injured man sued the country club for damages, including punitive damages, claiming that the country club breached its duty as a landowner by failing to maintain the handrail in a safe condition. The jury awarded both compensatory and punitive damages.

This decision points out that although a Florida land owner may be liable for damages resulting from an injury, the landowner must act with willful and wanton misconduct before punitive damages will apply. Nevertheless, an association seeking to minimize the potential of claims arising from an injury occurring on the association= s property should be diligent, maintaining the property free from dangerous conditions that may cause injury.

The firm= s offices will be closed Monday, February 18, 2008 in observance of President= s Day.