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BUL 4310

Assignment 1: Case Notes

IRAC Analysis

HABITAT II CONDOMINIUM, INC., a Florida not-for-profit corporation, Appellant, v.

Derrick KERR, an individual, and Beverly J. Amie, an individual, Appellees.

Facts: About May 14, 2004, defendant Beverly Amie transferred her condominium unit to defendant Derrick Kerr, without providing the Association with the proposed Contract

of Sale as established in the Article 15 of the Condominium Declaration. The

Association’s complaint sought an injunction requiring Kerr to transfer the property to

the Association in the same terms and conditions of his purchase or, as alternative, the

Association requested the court to void the transfer of the property and the require

Beverly Amie to offer the property to the Association on those same terms and the

complaint also sought the amount of $ 35 000.

Procedural History: The Association’s complaint sought an injunction requiring Kerr to transfer the property to the Association in the same terms and conditions of his

purchase or, as alternative, the Association requested the court to void the transfer of

the property and the require Beverly Amie to offer the property to the Association on

those same terms and the complaint also sought the amount of $ 35 000. Defendant

Kerr moved to dismiss the action for failure to comply with the arbitration provision of

section 718.1255(4), Florida Statutes (2005). The Association filed a written response

claiming that this action involved an issue of "title" to the condominium unit and, hence,

was not arbitrable under the arbitration statute. The granting of a motion to dismiss is

reviewed do novo. In considering a motion to dismiss for failure to state a cause of

action, the court is limited to the four corners of the complaint, the allegations of which

must be taken as true, defeating defendants' main argument that notice of the sale was

given to the Association in accordance with the Declaration. The Court dismissed the

action and the Association appealed to the Fourth District Court of Appeal

Issue: The main issue in this appeal is whether this case involves a dispute subject to arbitration pursuant to Florida Statute Section 718.1255.

Rule: The Association cites several arbitration decisions holding that where the Association seeks to void the transfer of a unit to a new owner, the disagreement

primarily involves title to the unit, thus making the case non-arbitrable. In Florida Statute

§ 718.1255(1), Fla. Stat. (2005) is stated that “Dispute” does not include any

disagreement that primarily involves: title to any unit or common element.

Analysis: The court considered whether this case falls within the statutory exclusion that states that "Dispute" does not include any disagreement that primarily involves: title

to any unit or common element… § 718.1255(1), Fla. Stat. (2005). Since the

disagreement primarily involves title of the unit and this case does not involve a dispute,

defendant Beverly Amie failed to comply with the requirements of the Association’s

Declaration of Condominium. the matter is not subject to arbitration.

Conclusion: This case does not involve a dispute, subject to arbitration. Thus the trial court improperly dismissed it and the appellate court reversed and remanded the case

to the trial court for further proceedings. so the transfer of the unit was void due to the

breach of the article 15 of the Association’s Declaration of Condominium.