Filed: Feb. 15, 2016
Latest Update: Mar. 02, 2020
Summary: IN THE DISTRICT COURT OF APPEAL FIRST DISTRICT, STATE OF FLORIDA JULIE K. HILTON, THE LOYD NOT FINAL UNTIL TIME EXPIRES TO CHARLES HILTON, JR. FILE MOTION FOR REHEARING AND QUALIFIED PERSONAL DISPOSITION THEREOF IF FILED RESIDENCE TRUST, THE LELA GRIFFIN HILTON CASE NO. 1D15-440 QUALIFIED PERSONAL RESIDENCE TRUST, AND THE LOYD CHARLES (CHIP) HILTON, III IRREVOCABLE TRUST, Appellants, v. DAVID PEARSON AND ELIZABETH PEARSON AND PARADISE BY THE SEA PROPERTY OWNERS ASSOCIATION, INC., A FLORIDA HOMEO
Summary: IN THE DISTRICT COURT OF APPEAL FIRST DISTRICT, STATE OF FLORIDA JULIE K. HILTON, THE LOYD NOT FINAL UNTIL TIME EXPIRES TO CHARLES HILTON, JR. FILE MOTION FOR REHEARING AND QUALIFIED PERSONAL DISPOSITION THEREOF IF FILED RESIDENCE TRUST, THE LELA GRIFFIN HILTON CASE NO. 1D15-440 QUALIFIED PERSONAL RESIDENCE TRUST, AND THE LOYD CHARLES (CHIP) HILTON, III IRREVOCABLE TRUST, Appellants, v. DAVID PEARSON AND ELIZABETH PEARSON AND PARADISE BY THE SEA PROPERTY OWNERS ASSOCIATION, INC., A FLORIDA HOMEOW..
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IN THE DISTRICT COURT OF APPEAL
FIRST DISTRICT, STATE OF FLORIDA
JULIE K. HILTON, THE LOYD NOT FINAL UNTIL TIME EXPIRES TO
CHARLES HILTON, JR. FILE MOTION FOR REHEARING AND
QUALIFIED PERSONAL DISPOSITION THEREOF IF FILED
RESIDENCE TRUST, THE
LELA GRIFFIN HILTON CASE NO. 1D15-440
QUALIFIED PERSONAL
RESIDENCE TRUST, AND THE
LOYD CHARLES (CHIP)
HILTON, III IRREVOCABLE
TRUST,
Appellants,
v.
DAVID PEARSON AND
ELIZABETH PEARSON AND
PARADISE BY THE SEA
PROPERTY OWNERS
ASSOCIATION, INC., A
FLORIDA HOMEOWNERS
ASSOCIATION,
Appellees.
_____________________________/
Opinion filed February 10, 2016.
An appeal from the Circuit Court for Walton County.
Kelvin C. Wells, Judge.
W. Douglas Hall and Peter D. Webster of Carlton Fields Jorden Burt, P.A.,
Tallahassee, for Appellants.
William S. Howell, Jr. of Williams S. Howell, Jr., P.A., Santa Rosa Beach; and Fred
D. Bentley, Jr., Marietta, GA, for Appellees David Pearson and Elizabeth Pearson.
No appearance for Appellee Paradise by the Sea Property Owners Association, Inc.
PER CURIAM.
Appellants (the Hiltons) seek review of an amended final order invalidating
the 2001 and 2005 amendments to the restrictive covenants governing the Paradise
by the Sea subdivision in south Walton County. We reverse because the suit
challenging the amendments is barred by the five-year statute of limitations in
section 95.11(2)(b), Florida Statutes.
In July 2013, Appellees David and Elizabeth Pearson (the Pearsons) filed suit
against the homeowners’ association for the Paradise by the Sea subdivision alleging
that the amendments to the subdivision’s restrictive covenants recorded in
September 2001 and April 2005 are “null and void” because they were not properly
enacted. Specifically, the suit alleged that the amendments were not enacted in
compliance with the subdivision’s original restrictive covenants because the 2001
amendments were never voted on or approved by the owners within the subdivision
and the 2005 amendments were approved by only 70% of the owners even though
2
the amendments affected the owners’ property rights. 1
The Hiltons were permitted to intervene to oppose the relief sought by the
Pearsons, and they filed an answer asserting the affirmative defense that the
Pearsons’ suit is barred by the statute of limitations. The Hiltons subsequently filed
a motion for summary judgment on the statute of limitations issue in which they
argued that “Harris [v. Aberdeen Property Owners Association, Inc.,
135 So. 3d 365
(Fla. 4th DCA 2014)] is directly on point and controlling.” The trial court denied
the motion.
In March 2015, after a bench trial, the trial court entered an amended final
order declaring the 2001 and 2005 amendments “void” and finding that the
subdivision’s original restrictive covenants remain in effect. The order also
reaffirmed the trial court’s rejection of the Hiltons’ statute of limitations defense,
finding that Harris “is not applicable to the present case.”
On appeal, in support of the argument that the trial court erred in rejecting
their statute of limitations defense, the Hiltons rely primarily on Harris and Silver
Shells Corp. v. St. Maarten at Silver Shells Condominium Association, Inc.,
169 So.
1
The original restrictive covenants provided that amendments generally “must be
approved by the affirmative vote of members who own not less than two-thirds (2/3)
of the total Lots in the [subdivision].” However, for amendments that “make any
change in the property rights of property owners,” the original restrictive covenants
required “approval . . . by all owners.”
3
3d 197 (Fla. 1st DCA 2015).2 In response, the Pearsons argue that the statute of
limitations defense was waived below because it was not raised by the association
in its answer, and even if the defense was not waived, the trial court correctly rejected
the defense because the improperly enacted amendments were tantamount to forged
deeds that were void ab initio and could be challenged at any time. The Hiltons
reply that the defense was not waived because the trial court expressly ruled that
they could raise the issue as an affirmative defense as intervenors and the court also
granted the association’s motion asking the trial court to consider the issue in order
to avoid further delay in resolving which version of the restrictive covenants governs
the subdivision.
We summarily reject the Pearsons’ waiver argument, finding it refuted by the
record and contrary to rulings by the trial court that the Pearsons did not cross-
appeal. On the merits of the statute of limitations issue, we agree with the Hiltons
that reversal is compelled by Harris and Silver Shells, which stand for the
proposition that a suit challenging the validity of an amendment to restrictive
covenants must be filed within five years of the date that the amendment is recorded
even if the suit alleges that the amendment was void because it was not properly
enacted. Here, the Pearsons’ suit was filed almost 12 years after the 2001
amendment was recorded and more than 8 years after the 2005 amendment was
2
Silver Shells was decided after this appeal was filed.
4
recorded. Therefore, the suit is barred by the statute of limitations.3
Finally, contrary to the position explicated by the Pearsons for the first time
at oral argument, we see nothing in the record that could support a finding that the
Hiltons were equitably estopped from asserting the statute of limitations defense or
that would otherwise require further development of the record regarding the
applicability of that defense. Accordingly, the amended final order is reversed and
this case is remanded for entry of judgment against the Pearsons.
REVERSED and REMANDED with directions.
WETHERELL, MAKAR, and WINOKUR, JJ., CONCUR.
3
Based on this disposition, we need not consider the Hiltons’ argument that the trial
court misconstrued the original restrictive covenants and erroneously determined
that the 2001 and 2005 amendments are void.
5