Terrace Gallery, LLC v. Gallery One Condominium Association, Inc.
A residential unit owner's 2022 suit to invalidate and reform a mixed-use condominium declaration recorded in 2005—challenging the declaration's exclusion of utilities from "Common Elements" in favor of "Shared Components of the Hotel Unit"—was time-barred under both the three-year statute of repose in § 718.110(10) and the five-year statute of limitations in § 95.11(2)(b). The Fourth DCA reversed the trial court's summary judgment for the unit owner, holding that the substance of the complaint, not its label, determined that it was an action to determine compliance with the mandatory formation requirements for a condominium. The court further held that for actions seeking to invalidate or reform a condominium declaration, the statute of limitations accrues on the recording date, not on the date the plaintiff later acquired title.
Key facts
- Gallery One is a mixed-use condominium in Broward County comprising residential, commercial, and hotel units; its Declaration, recorded in 2005, designated utilities and HVAC systems that would ordinarily be common elements as 'Shared Components of the Hotel Unit,' thereby shifting ownership and maintenance responsibility to the hotel unit owner, DEJ Hotels, LLC.
- In 2022, Terrace Gallery, LLC, a residential unit owner that had acquired its units in 2019, filed a two-count complaint against the condominium association seeking a declaration that the Declaration violated Florida's Condominium Act (Chapter 718) and reformation of the Declaration, relying on the Third DCA's decision in IconBrickell Condominium No. Three Ass'n v. New Media Consulting, LLC, 310 So. 3d 477 (Fla. 3d DCA 2020).
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Holdings
- The substance of a complaint—not its label—controls whether § 718.110(10)'s three-year statute of repose applies; any action challenging a condominium declaration's compliance with…
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