Gratigny Park Condominium No. 1, Inc. v. Perez
Unit owners sued their condominium association for breach of fiduciary duty, mismanagement, and improper expenditures without complying with the derivative-action presuit demand requirements of section 617.07401. The trial court denied the association's motion to dismiss, holding section 718.303(1) creates a direct right of action unconditioned on derivative presuit requirements. The Third DCA granted certiorari and quashed, holding the two statutes operate in harmony — section 718.303(1) supplies the substantive cause of action while section 617.07401 supplies the procedural prerequisites when the claim is derivative in substance.
Key facts
- Unit owners of Gratigny Park Condominium sued the condominium association alleging breach of fiduciary duty, mismanagement, and improper expenditures affecting all unit owners equally.
- The trial court denied the association's motion to dismiss, finding that section 718.303(1) creates a direct right of action that bypasses derivative-action presuit demand requirements under section 617.07401.
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Why it matters
This is a useful holding for community association defense counsel: unit-owner suits against the association alleging mismanagement, improper expenditures, or breach of fiduciary duty that affect all owners equally must… — full analysis with a trial
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