Court case could affect condo boards

Article Courtesy of The Sun Sentinel

By Marci Shatzman

Published July 29, 2007 

 

Dick and Judy Herman are more than 20 years younger than some of their neighbors in Kings Point, so there was a collective sigh of relief when they volunteered to run the Burgundy A Association.

This is the third year that Dick, 69, has been the president, and Judy, 64, has been treasurer. She also serves on the landscaping committee of their 48-unit section in the adult community west of Delray Beach.

It's not how they envisioned spending their retirement, although they don't mind it. It's just that some of their neighbors are investors who rent, snowbirds just there three or four months, or they're in their late 80s and 90s. So, there simply aren't enough people willing or able to run a seven-member board.

"When my wife and I visit our grandchildren, the board is down to three, which means if there is any required business, an open board meeting is extremely difficult," Dick wrote via e-mail. "Also, because it requires two persons to sign checks ... it can take a month to get the required signatures on checks."

But a rancorous court case is challenging whether well-intentioned couples, or more precisely more than one person living in a unit, can serve on a board in a condo association. The matter is being watched closely for its obvious, widespread implications for people such as the Hermans, who serve a community where people have aged and there aren't enough to run the board of directors.

The lawsuit involves Phil and Lauren Rosen Beracha, who were elected to the board earlier this year in Lakewood Village, a condo complex in Coral Springs. Their right to both serve was challenged by a bylaw in the association documents that says "there shall only be one director serving from any one unit at any time," according to court documents. "In the event that more than one owner of a unit is elected to the board at the same time, one of those owners, preferably the one who received the lower number of votes ... shall be deemed to have resigned ... "

The law hurriedly was amended into the bylaws after the Berachas announced their intentions to run, and Lauren refused to step down when they won.

The case was decided in late June in favor of the Berachas, and it appears to be precedent setting. It was the first time in Florida that a judge had ruled that two or more owners of the same condo unit could serve on a condo board, even when their association rules prohibit it.

But the matter isn't resolved. The judge has referred the matter to the 4th District Court of Appeal, because it will have such a big impact on condo law. Lakewood has appealed the decision.

But at Kings Point, no one is waiting breathlessly to see if the Hermans can keep their volunteer jobs, and it's unlikely there will be a challenge.

"I think they are doing a fine job," former board Vice President Harry Ogur said. "It's unfortunate we can't get more people."

He has no objections to two or more people from the same unit serving on the board.

"Not at all, as long as they are competent," he said.

No matter the outcome of the court case, the Hermans have no intention of stepping down, they said. They think a law banning them would be superfluous, because residents have the right to recall their condo board under Florida statutes.

"They talked about it, but no one objected," Dick said about being a couple on a board. "Most of the people are quite satisfied and are happy we decided to stay on."

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