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IN THE FIRST DISTRICT COURT OF APPEAL
STATE OF FLORIDA
JOHN P. CARROLL,
Plaintiff/Appellant,
v. CASE NO.: 1D10-3850
L.T. CASE: 2009 CA 002021
WATERSOUND BEACH COMMUNITY
ASSOCIATION, INC., WATERCOLORCOMMUNITY ASSOCIATION, INC.,
SANDRA MATTESON, DAVID LILIENTHAL,
RONALD VOELKER, MARY JOULE,
JOHN DOE AND JANE DOE,
Defendants/Appellees.
______________________________/
ON APPEAL FROM THE CIRCUIT COURTOF THE FIRST JUDICIAL CIRCUIT,
IN AND FOR WALTON COUNTY, FLORIDA
CASE NUMBER 2009 CA 002021
___________________________________________________________________
APPELLAT'S REPLY BRIEF
___________________________________________________________________
John P. Carroll, Pro Se
Box 613524
WaterSound, FL 32461
Telephone 850-231-5616
Facsimile 850-622-5618
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TABLE OF COTETS
TABLE OF
CONTENTS................................................................................................................i
SUMMARY OF
ARGUMENT.............................................................................................................1
ARGUMENT IN RESPONSE AND REBUTTAL...1
CONCLUSION..........................................................................................................2
CERTIFICATE OF
SERVICE...................................................................................................................3
CERTIFICATE OF
COMPLIANCE..........................................................................................................3
i
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SUMMARY OF ARGUMET
WaterSounds Answer Brief contains a Statement of the Case that extends
beyond relevance to this appeal. In response, I only point out that the Lower Tribunal
has denied WaterSound, Matteson, Lilienthal, Voelker and Watercolors Motion to
Dismiss on 8 of the 10 Counts in the underlying case. (R 1)
To the issues in this appeal, WaterSound and the other Appellees are incorrect.
This appeal should be reviewed de novo. The lower tribunal misapplied the
WaterSound covenants and the law. WaterSound admitted clearly and distinctly on
record,
He hasn't finished in that 20 month period, and as such, he's been fined
$1,000 a month since that time. Now, as he mentioned, this fine at this
point takes the form of a lien on the property. (T 12)
Florida Statute and WaterSounds Covenants are clear. It is against the law
for WaterSound to lien Lot 24 for any fine.
ARGUMET I RESPOSE AD REBUTTAL TO ASWER BRIEF
To Appellees Section A. Standards of Review: At page 3 of the Answer Brief,
Appellees argue against a de novo review. The lower tribunal misapplied the law. The
lower tribunal also misunderstood the clear and unambiguous terms of the WaterSound
1.
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Covenants. As fully presented in Carrolls initial brief, Florida Statute prohibits HOA
fines being expressed as liens. As fully presented in Carrolls initial brief,
WaterSounds Covenants prohibit benefited assessments being expressed in any way
close to the way WaterSound has liened Lot 24.
COCLUSIO
For the above-mentioned reasons, and those more detailed in the initial brief,
Carroll shows that the trial court committed reversible error and abused its discretion
by denying the Petition for Injunction, and thus Carroll requests that this Court reverse
the trial courts denial of Injunction and remand with instructions for the immediate
issuance of the injunction.
Respectfully submitted,
_____________________________
John P. Carroll, pro seBox 613524
WaterSound, FL 32461
(850) 231-5616 - phone
(850) 622-5618- fax
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing has been
furnished to Christopher L. George, Esq., PO Box 1034, Mobile, AL 36633 and toMark D. Davis, Esq., 694 Baldwin Ave. Suite 1, PO Box 705, DeFuniak Springs, FL
32435, and to Gary Shipman, Esq., 1414 County Highway 283 South, Suite B, Santa
Rosa Beach, FL 32459, Attorneys for Appellees, by hand delivery or certified mail this
16th
day of December, 2010.
_____________________________
John Carroll, pro se
Box 613524
WaterSound, FL 32461
(850) 231-5616 - phone
(850) 622-5618- [email protected]
CERTIFICATE OF COMPLIACE
I HEREBY CERTIFY that the lettering in this brief is Times New Roman 14-
point Font and complies with the font requirements of Florida Rule of Appellate
Procedure 9.210(a)(2).
_____________________________John Carroll, pro se
Box 613524
WaterSound, FL 32461
(850) 231-5616 - phone
(850) 622-5618- fax
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TABLE OF COTETS
Transcripti
Record 1.............................................................................................................ii
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Transcript i
1 IN THE CIRCUIT COURT IN AND FOR OKALOOSA COUNTY,
2 FLORIDA
3JOHN P. CARROLL,
4
5 Plaintiff,
6 vs. CASE NO. 09-CA-2021
7 WATERSOUND BEACH COMMUNITYASSOCIATION, et al,
8
9 Defendant.
10
11 _____________________________________________________
12 PROCEEDINGSJune 14, 2010
13 9:00 a.m.Walton County Courthouse Annex
14 DeFuniak Springs, Florida
15BEFORE: The Honorable Howard LaPorte
16 Circuit Judge
17
18 _____________________________________________________KATHRYN B. PEACOCK
19 Court Reporter1009 Ridgewood Cove, S.
20 Niceville, Florida 32578(904)897-2864
21
22
23
24
25
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2
1
2 APPEARANCES
3JOHN CARROLL
4 Post Office Box 613524Watersound, FL 32461
5 Plaintiff Pro Se
6 CHRISTOPHER L. GEORGE, ESQUIREAttorney at Law
7 Post Office Box 1034Mobile, AL 36633
8 For the Defendant Watersound
9 MARK DAVIS, ESQUIREAttorney at Law
10 Post Office Box 705DeFuniak Springs, FL 32435
11 For the Defendant Voelker
12
13 INDEX
14 CERTIFICATE OF REPORTER 51
15
16
17
18
19
20
21
22
23
24
25
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1 THE COURT: We are convened on Case 09 CA
2 2021. Plaintiff is present. And counsel for
3 Watersound and Voelker are both present.
4 MR. GEORGE: Yes, sir.
5 MR. DAVIS: That's correct.
6 THE COURT: We had down on the schedule
7 that it's plaintiff's motion for injunction,
8 but the notice of hearing appears to be on the
9 plaintiff's motion for summary judgment.
10 MR. CARROLL: The motion for an injunction
11 was on the summary judgment. Your Honor, I
12 filed a declaratory action, asked for a summary
13 judgment. I couldn't get it set for a hearing,
14 so I felt I needed to file a motion for
15 injunction.
16 THE COURT: So why are we here?
17 MR. CARROLL: I believe that we're here
18 for the injunction and the summary judgment on
19 the same exact matter. It's about a benefited
20 assessment in Watersound Beach.
21 THE COURT: Okay. All right. Will you be
22 taking testimony?
23 MR. CARROLL: No, Your Honor.
24 THE COURT: You will not?
25 MR. CARROLL: No.
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1 motion to dismiss and for protective order I
2 filed and a motion for case management order
3 that counsel for the codefendant filed. I,
4 like you, saw on the notice of hearing it said
5 something about a motion for summary judgment,
6 and we checked with your office, and we were
7 told that the only thing set today as far as
8 plaintiff's motion was the motion for
9 injunction. So we have not responded to his
10 motion for summary judgment yet, and I really
11 didn't come here today prepared to argue that
12 motion for summary judgment. Had I known it
13 was set, I would have filed something saying we
14 probably ought to conduct a little discovery
15 before that's heard. We haven't gotten
16 responses to our discovery request in yet.
17 We've conducted no depositions yet. I would
18 think it would be premature, and I would have
19 filed something telling the Court that if I
20 thought that motion was set today, that summary
21 judgment.
22 THE COURT: Well, the notice of hearing
23 dated March 31st from Mr. Carroll indicates
24 that the hearing would be on the petition for
25 injunction related to the motion for summary
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1 judgment on declaratory relief. So I guess
2 that puts you on notice that there's a petition
3 for injunction and petition for summary
4 judgment.
5 MR. CARROLL: If I may, Your Honor.
6 THE COURT: Yes.
7 MR. CARROLL: I tried to set that motion
8 to be heard -- my summary judgment to be heard.
9 I got Mr. George on the telephone with your
10 judicial assistant, and he wouldn't allow me to
11 set the summary judgment and that's why I filed
12 the motion for injunction. I felt it needed
13 relief and injunctive relief related to the
14 summary judgment. I sure didn't want to take
15 up the Court's docket with a whole big filing,
16 so I limited it to the injunction based on the
17 summary judgment. I'm not sure why Mr. George
18 didn't want to set that summary judgment for
19 hearing.
20 MR. GEORGE: Well, if I could explain,
21 Judge, what we told your assistant and what we
22 told Mr. Carroll when we had him on the phone
23 was we believe the hearing on a summary
24 judgment was premature. I mean, I filed
25 written discovery back in January. I don't
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1 have answers yet. We haven't conducted the
2 first deposition. We just haven't built any
3 kind of evidentiary record yet from which he
4 could argue a summary judgment or I could
5 oppose it. That's why I didn't agree to set a
6 summary judgment. It was my understanding we
7 were here today on a motion for injunction. I
8 mean, I'll do the best I can if Your Honor
9 wants to proceed with the summary judgment.
10 But again, I would submit it's somewhat
11 premature until we get a little discovery
12 behind us.
13 THE COURT: All right. Mr. Carroll, your
14 notice of hearing says petition for injunction
15 related to the motion for summary judgment. So
16 if you'll go forward.
17 MR. CARROLL: Okay. Your Honor,
18 Watersound Beach is a community that's governed
19 by restrictive covenants. They've been
20 recorded. My motion for summary judgment and
21 related injunction talks specifically to those
22 documents that have been recorded in the public
23 record of Walton County, and with specificity
24 on this summary judgment, it only pertained to
25 one thing and it's what's called -- it's what
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1 the defendants are calling a benefited
2 assessment, which is an assessment that they're
3 leveeing against my property in Watersound
4 Beach of $1,000 per month. It's a recurring
5 assessment. I'm the first one in Watersound
6 that has ever had that assessment placed
7 against their property. And what my problem,
8 my issue, my legal issue with the whole thing
9 is, in order for the community to levy
10 assessments against individual properties,
11 they've got to follow the restrictive
12 covenants. The restrictive covenants are very
13 clear on the procedures they need to follow.
14 The community didn't follow those procedures.
15 What the restrictive covenants say at Section
16 8.5 is that the association may levy benefited
17 assessments against one or more particular lots
18 to cover the costs of providing special
19 services to that lot or to cover costs incurred
20 in bringing lot in compliance. That's the only
21 two reasons that they could apply benefit
22 assessment. Both of those are related to
23 recovering costs. What the community has done
24 though is they've really issued a fine so to
25 speak. They call it a benefited assessment,
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1 and it continues to accrue as a lien against my
2 property every month for $1,000, but there is
3 no benefit. There is no cost. The community
4 is not giving special services to Lot 24, and
5 the community is not bringing Lot 24 into
6 compliance. The community is just issuing a
7 recurring $1,000 per month fine at no cost to
8 them and at no benefit to Lot 24. In order for
9 the community to issue a benefited assessment,
10 they have to read the by-laws, which are
11 recorded. And they say that if you want to
12 issue a benefited assessment at Section 3.24(a)
13 it says you must send a notice that describes
14 the process for a hearing. That same notice
15 says that it should be imposed unless the
16 alleged violator elects a hearing. And the
17 last part is, it says the covenants committee
18 must approve the fine by a majority vote.
19 They've put the cart way in front of the horse.
20 There is no covenants committee to issue a
21 benefits assessment. That's at Section 5.2 of
22 the by-laws that are recorded. It says the
23 board shall appoint a covenants committee
24 consisting of at least three members. None of
25 the members can be board members or family
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1 members. Watersound has no covenants
2 committee. What's happened here is the board
3 itself, the board of directors, has issued
4 $1,000 a month recurring fine that's accruing
5 as a lien against the property. Those same
6 individuals who levied the fine are now
7 stepping in as the judge -- the covenants
8 committee. They've given me no chance for a
9 hearing. And most importantly, it's selective
10 enforcement. There are at least 40 homes in
11 the community who have all gone over 16 months
12 in construction time and yet they've never
13 levied this benefits assessment against anyone
14 but myself. I don't understand where they get
15 their authority. I've protested and I
16 protested in writing and asked them how do you
17 derive your authority. Give me the chance and
18 opportunity to explain. There are extenuating
19 circumstances. And show me your costs you've
20 incurred. I've got no response and yet this
21 lien continues to accrue at $1,000 per month.
22 What I'm here today for now, I wish were for
23 the summary judgment, but if it means it's just
24 for an injunction, I'd like to ask this Court
25 to issue an injunction stopping them from
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1 continuing to accrue this $1,000 a month
2 assessment against my lot for something they
3 have no authority to do. And I'm asking the
4 Court to stay or remove the lien that's been
5 expressed against my property for that $1,000 a
6 month and that's all. I believe it's a real
7 simple issue, and I think it's time for a
8 summary judgment. I can't think of a bit of
9 discovery that has to occur. I mean, the
10 summary judgment explains and shows yes,
11 they've billed me every month, included in
12 which my summary judgment are the covenants and
13 restrictions, included in which is the specific
14 enforcement angle that shows at least 30
15 different jobs who have all gone over the time
16 limit but yet haven't been fined a penny. And
17 I think it's proper to seek injunctive relief
18 in this case. We don't have time to go to
19 trial in two years and talk about this
20 recurring lien. It's affecting the closing,
21 the refinance closing on my property. That's
22 all I have, Your Honor.
23 THE COURT: All right.
24 MR. GEORGE: Just a few things, Judge.
25 First of all, he has made a lot of assertions
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1 for which there is no evidence in the record
2 yet. I think the most crucial ones are that
3 he's the first one to have an assessment
4 against him. There's no evidence in his motion
5 for summary judgment to establish that. The
6 second one is Watersound has no covenants
7 committee. Again, there's no evidence in the
8 record to support that assertion, and they do
9 have a covenants committee. He's also
10 mentioned, and I think rightfully so, on
11 occasion some homebuilders are allowed to go
12 beyond the 16-month period for constructing a
13 home. That's what we're really dealing with,
14 Judge. The covenants say, if you're going to
15 build a home in this subdivision -- and he
16 cites this part of the covenants in his
17 motion -- you have 16 months to finish that
18 home. If you don't, then they're going to levy
19 a $1,000 a month fine against you for every
20 month you go over. There is a process that a
21 builder such as Mr. Carroll can apply for an
22 extension for a longer time to complete a home.
23 And in fact, on this lot that he's complaining
24 about, Lot 24, Mr. Carroll requested and was
25 granted a four-month extension. So he was
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1 given not 16 months but 20 months to finish
2 constructing the home on that lot. He hasn't
3 finished in that 20 month period, and as such,
4 he's been fined $1,000 a month since that time.
5 Now, as he mentioned, this fine at this point
6 takes the form of a lien on the property.
7 They're not forcing him to pay. They haven't
8 started any action to try to collect that. And
9 I think that's important because, you know, in
10 order to get injunctive relief, he's got to
11 show that he has no adequate remedy and he's
12 going to suffer irreparable harm if the relief
13 he seeks isn't granted. I don't think he can
14 make that showing, Judge. Also, as he noted,
15 Section 3.24 of the covenants say that once
16 he's given notice of this assessment, which he
17 was given by virtue of the fact that he got a
18 four-month extension, and they wrote him and
19 said, all right, we grant you the four month
20 extension. You have 20 months to finish. If
21 you don't finish in 20 months, we're going to
22 start fining you $1,000 a month. He received
23 that letter, and he was aware then that after
24 the 20 months, he started getting fined. The
25 by-laws say that if a builder, such as
KATHRYN B. PEACOCK, COURT REPORTER (850) 897-2864
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1 Mr. Carroll, wants to contest any kind of a
2 penalty against him, there's a procedure for
3 doing that. There's a set time limit for
4 filing for an appeal with the covenants
5 committee. He's not done any of that. So he
6 hasn't taken the steps to get the relief that
7 might have been available to him. He let that
8 time period expire. And by doing so, I contend
9 he's waived any right to contest that
10 assessment. But more importantly, I think all
11 of that is wrapped up in all of the facts of
12 this case. What this case really boils down
13 to, Judge, is Mr. Carroll is claiming that he
14 was treated wrongfully and that Watersound and
15 it's governing committees and Board of
16 Directors treated him differently than every
17 other builder out there and somehow enforced
18 covenants and restrictions against him that
19 they didn't against anybody else. We are going
20 to be able to establish through the course of
21 discovery that that's just not the case. I
22 find it kind of disconcerting that Mr. Carroll
23 says, no, I don't think we need any discovery.
24 When we first started this case he told me he
25 wanted to depose over 40 people with Watersound
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1 and other builders and things of that nature.
2 And I think that discovery is going to prove,
3 and even the files we produced to him, prove
4 that we have levied fines against other
5 builders, significant fines for the same kind
6 of thing. There have been times when they
7 grant builders extensions. And I just think
8 based on the state of the evidence you have in
9 front of you now, his motion for summary
10 judgment, if the Court is going to entertain
11 that today, it's due to be denied and so is his
12 motion for injunction.
13 MR. DAVIS: Judge, just briefly, my
14 argument is fairly brief to the extent it
15 applies. I don't think any motion can be
16 granted until the motion is sworn to. There
17 are no affidavits in the file. None of the
18 documents have been presented, have in any way
19 been entered into evidence with any kind of --
20 in any manner, and just on the procedural
21 standpoint, I think you should deny the motion.
22 THE COURT: All right. Mr. Carroll, I'll
23 hear from you, and I'm still a little confused.
24 Are you intending on moving on the motion for
25 injunction and the motion for summary judgment?
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1 Are we going on both of those today?
2 MR. CARROLL: I'm sorry, Your Honor. I
3 think it would be prejudice to Mr. George. I'm
4 only here on the injunction.
5 THE COURT: Okay. Just so that I
6 understand and everybody else understands.
7 We're here on the motion for and -- the
8 injunction. And you will now have the last
9 word on that.
10 MR. CARROLL: Your Honor, my motion for
11 summary judgment and the injunction, which was
12 attached to the summary judgment, included
13 Exhibit B, which has been delivered to everyone
14 in here.
15 THE COURT: Is that in here?
16 MR. CARROLL: Yes.
17 THE COURT: Okay. I don't need another
18 copy.
19 MR. CARROLL: It's the letter from
20 Watersound Beach Community to me saying that
21 our records indicate your house is about to go
22 over the time limit. And it says in that same
23 letter on June 2nd, 2006, the homeowner's
24 association passed a resolution that allows the
25 neighborhood to collect $1,000 a month. It
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1 tells me not that you've got a right to a
2 hearing like the covenant says or that you've
3 got, for that matter, that it's coming from the
4 covenants committee. It's a letter from the
5 board of directors and the DRB saying you've
6 got four months to finish your house. That's
7 all there is to it. No hearing, no nothing.
8 There has never been any kind of letter that
9 come from the community that said we're giving
10 you four more months, but after that we're
11 going to fine you. It was this letter,
12 July 29th, 2009 from the community saying
13 starting on July 31st, which was two days after
14 the date of the letter, in two days we're going
15 to start fining you $1,000 a month. The
16 defendants generated this letter to me. I
17 didn't generate the letter to them. I also
18 included as exhibits, Exhibit C, which was the
19 June 2nd, 2006 meeting where they supposedly
20 formed this new benefited assessment. There's
21 nothing in the minutes. It's in the court
22 file. There's nothing in the minutes that said
23 they created a new benefited assessment at all.
24 I included in my motion Exhibit E, Exhibit F,
25 Exhibit G -- they go on and on -- 30 different
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1 jobs showing the date the neighborhood approved
2 the job to start; the date of the permit; the
3 date of the final completion, which was well
4 beyond 16 months, and none of those jobs were
5 fined. I went through the entire court file.
6 And the entire file for every job, there's no
7 fines have never been done. And what I was
8 telling the Court is I'm the first one to ever
9 have been fined this amount. It's 100 percent
10 true. No one was ever fined $1,000 a month
11 before me in the history of the neighborhood.
12 And my motion describes it, explains it, proves
13 it. My documents and my exhibits attached
14 explain it, and I swear to everything in there.
15 I'm the person who's being fined $1,000 a month
16 by the neighborhood, and I'm here to tell you
17 they're fining me and it's being expressed as a
18 lien, and I showed in my filing that when I
19 went to do my refinance closing, they
20 submitted -- the defendants submitted an
21 invoice over to the title company saying if you
22 want your title cleared, you need to pay these
23 assessments, and it's in there, and that's why
24 I'm asking for injunctive relief. Again, I
25 can't -- it's not adequate for me to wait two
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1 years to get this resolved. I need to have it
2 resolved at this time.
3 THE COURT: All right. Thank you. I will
4 take the motion for injunctive relief under
5 advisement. Do y'all want to wait now until
6 10:00 to start the next or do you want -- you
7 have some other motions. You want to move
8 right into those?
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