Background
Villages of Palm Beach Lakes Property Owners’ Association sued a multiple-unit owner for breach of contract to recover an unpaid annual maintenance assessment required by the association’s Declaration. Before suit, the owner offered payment but refused to include the attorney’s fees the association had incurred in its collection effort.
After the lawsuit was filed, the owner paid the delinquent assessment in full and virtually all accrued interest. The association voluntarily dismissed the action and moved for prevailing-party attorney’s fees under section 720.305(1), Florida Statutes (2025). The county court denied the motion, reasoning that suit had been unnecessary because the owner had persistently offered the amount for which the association sued.
The Court’s Holding
The Fourth District reversed. Under section 720.3085(3)(b), Florida Statutes (2025), the association was entitled to demand payment of its collection attorney’s fees along with the assessment and accrued interest before treating the collection matter as fully resolved. Because the owner’s pre-suit offer excluded those fees, the association was entitled to reject the offer and sue to collect the unpaid assessment, accrued interest, and reasonable collection fees.
The court further held that the association could pursue prevailing-party fees despite voluntarily dismissing the case. The owner’s post-suit payment provided the significant relief the association had sought, making the association the prevailing party under the governing precedent.
The court remanded with directions to grant the association’s prevailing-party attorney’s-fees motion and conduct an evidentiary hearing to determine the reasonable amount to be awarded against the owner.
Key Takeaways
- An association need not treat a pre-suit payment offer as full resolution when the offer excludes reasonable attorney’s fees already incurred in collection.
- An owner’s voluntary compliance after litigation begins may make the association the prevailing party even when the association later voluntarily dismisses the case.
- On remand, the county court must grant the association’s fee motion and determine the reasonable fee amount at an evidentiary hearing.
Why It Matters
The decision confirms that Florida homeowners’ associations may insist on payment of authorized collection attorney’s fees before considering a delinquent assessment resolved. A property owner cannot necessarily avoid fee exposure by offering only part of the amounts recoverable during the collection process.
It also underscores that a voluntary dismissal does not automatically defeat prevailing-party status when the defendant provides the requested relief after suit is filed.