In short: Yes, when the association’s covenant claims are distinct from the owner’s damages counterclaims, the trial court has discretion to sever them and try the equitable claims first. In Clark v. Bluewater Key RV Ownership Park Property Owners Association, the Third District affirmed on May 10, 2017 a permanent injunction barring lot owners from using “work campers” and lots in the park to run their rental business, holding that use was prohibited commercial activity under the declaration.
The Facts
Bluewater Key is an 81-lot recreational vehicle park on Saddlebunch Key in Monroe County, governed by a 1989 Declaration of Restrictions and Protective Covenants. The association runs its own transient rental program. Rita Clark ran a competing program that managed about 21 lots for absentee owners and rented them to RV owners. Rita Clark, Roland Clark and David Glenz own and control lots in the park.
According to the opinion, the Clark program relied on “work campers” who got free use of a lot in exchange for repairs, cleanup and acting as an in-park contact for renters. In 2014 the association sued for declaratory and injunctive relief, alleging prohibited commercial activity on the lots, a county code violation and a nuisance. The owners counterclaimed for declaratory and injunctive relief, alleging selective enforcement, and Clark added claims for tortious interference and under Florida’s unfair trade practices act.
The trial court severed the claims and held a bench trial in March 2016 on the association’s claims alone. It entered a final judgment granting declaratory relief and a permanent injunction. The owners appealed. At argument:
- The owners argued the bench trial violated their right to a jury on compulsory counterclaims that were intertwined with the association’s claims, and that “commercial activity” was undefined and had to be construed in favor of the landowner.
- They also argued 15 years of renting with work campers showed how everyone understood the covenant, and that the association did the same thing in its own program.
- The association argued the counterclaims were permissive, reached back to events as early as 1999, and were tacked on to delay an urgent covenant case, and that the owners went to trial without seeking review of the severance order.
The Decision
The Third District affirmed on May 10, 2017. Clark v. Bluewater Key RV Ownership Park Prop. Owners Ass’n, 226 So. 3d 276 (Fla. 3d DCA 2017).
On the jury issue, the court found no jury demand in the pleadings or docket that complied with Florida Rule of Civil Procedure 1.430. It explained that even with a timely demand, issues may be tried separately unless they are so intertwined that severance risks inconsistent results; otherwise severance under rule 1.270(b) is discretionary. The association’s claims were classic equitable covenant enforcement, while the counterclaims sought money damages on different elements, so there was no abuse of discretion.
On the covenant, the court read the declaration by its ordinary meaning and its stated purpose of keeping the park an exclusive RV resort. Renting lots to work campers is not a recreational use, and housing workers, storing equipment and doing extensive repairs for a for-profit rental business is prohibited commercial activity. The judgment expressly preserved the owners’ right to rent their own lots and allowed routine tasks such as greeting renters and parking RVs.
The court rejected the selective enforcement, waiver, estoppel and unclean hands defenses on the trial court’s detailed findings, and noted that lot owners may sue to enforce the declaration against the association’s own program, without expressing a view on such a claim. A motion for rehearing was later withdrawn, and the mandate issued October 12, 2017.
The Law
Florida courts strictly construe restrictive covenants in favor of the free use of land and resolve real ambiguity against the party enforcing them. But they will not read a covenant to defeat its plain intent and purpose. The Bluewater Key court used a dictionary meaning of “commercial activity” (activity conducted to make a profit) and the declaration’s stated purpose.
A party who wants a jury must serve a written demand under rule 1.430. A court may order separate trials under rule 1.270(b), but when legal and equitable claims share common issues and severance risks inconsistent results, the legal claims generally must be tried to a jury first.
An order granting an injunction can be reviewed before final judgment under Florida Rule of Appellate Procedure 9.130, which is how this appeal reached the court. To enforce a restrictive covenant by injunction, the association does not have to prove irreparable harm; proof of the violation is enough.
Lessons
- If you want a jury, file a written demand that complies with rule 1.430 and make sure it is in the court file.
- Tacking damages counterclaims onto an association’s covenant case will not necessarily delay the injunction trial if the claims are distinct.
- “Commercial activity” restrictions will be read in light of the community’s purpose. An undefined term is not automatically read in the owner’s favor.
- Years of tolerated conduct and claims that the association does the same thing are hard defenses to win; the trial court’s findings on them get deference.
Source: Clark v. Bluewater Key RV Ownership Park Property Owners Ass’n, No. 3D16-1645, 226 So. 3d 276 (Fla. 3d DCA May 10, 2017); ACIS docket.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Bench Trial on an HOA Injunction Despite a Jury Demand on Compulsory Counterclaims: Error?
Read the Law on FloridaRules.net
The statutes and court rules discussed in this article, free to read on FloridaRules.net:
Go Deeper
- Tax Deed Buyer Locked Out of an HOA Playground: Injunction Affirmed (92 On The Bay)
- Five-Year Deadline to Challenge HOA Covenant Amendments in Florida (Hilton v. Pearson)
- Can a Later Amendment Extend Deed Restrictions on Land Already Sold? (Fiore v. Hilliker)
Frequently Asked Questions
Do I get a jury trial if my HOA sues me for an injunction?
Not on the injunction itself, which is an equitable claim the judge decides. You may have a jury right on legal counterclaims for damages if you file a proper written demand under rule 1.430. In Clark v. Bluewater Key the court found no compliant demand and held the judge could try the covenant claims first because they were distinct.
Can I run a rental business out of my lot in an HOA community?
It depends on the declaration. Renting your own lot may be allowed while using lots to house workers, store equipment or run the business is not. That is the line the Bluewater Key judgment drew, and the Third District affirmed it.
Can an HOA enforce a rule it ignored for years?
Often yes. Many declarations have non-waiver clauses, and courts look closely at whether the owner proved waiver, estoppel or selective enforcement. In Bluewater Key, the trial court rejected those defenses and the appeals court deferred to its findings.
Does an HOA have to prove harm to get an injunction?
No. To enforce a restrictive covenant, the association generally needs to prove the violation, not irreparable harm. The Bluewater Key opinion applied that rule.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate disputes, title problems and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
