What Are the Legal Rights of Tenants in a Florida Partition Action?

In Florida, a partition action is a legal proceeding used to sell real estate when there are multiple co-owners who cannot agree on how to manage the property. Partition actions often arise in the context of probate litigation. For example, if multiple siblings inherit a parent’s home and they disagree on whether or how to sell it, a partition action may be filed to force a judicial sale. But partition actions may also occur with investment properties, such as office parks or condominiums, where multiple owners may have a stake.

Courts Continue to Sort Out 2023 Fire That Destroyed Miami Gardens Complex

The Florida Third District Court of Appeals recently addressed whether or not the tenants of a residential condominium had standing to intervene in a partition action involving the sale of their now-destroyed homes. This case, Breedlove v. Gersten, involved a January 2023 fire that destroyed the New World Condominium Apartments in Miami Gardens. At the time, a condo association maintained and operated the property, which court records noted had “fallen into disrepair” over the years.

Following the complex’s destruction, several individual condo unit owners sued the association. A Florida circuit court judge appointed a receiver to take possession of the association’s remaining assets, which at the time amounted to $93,000 in cash, $364,000 in unpaid association fees, and the land where the destroyed apartment complex once stood.

The court also imposed a stay of all pending or potential creditor claims against the association. The plaintiffs in this case, seven individuals who rented units at New World, subsequently filed a motion to partially lift the stay so they could pursue claims against the association’s insurance policy prior to any partition sale. The court granted this motion and the tenants filed two class actions.

Meanwhile, following the demolition of the apartment complex, the receiver filed a partition action to sell the now-vacant 3.5 acres of land. The receiver planned to use the sales proceeds to pay off as many of the association’s creditors as possible. About a year into this proceeding, the plaintiffs sought to intervene in the partition action, arguing the pending sale would effectively dissolve the association and leave them with no ability to seek compensation for their losses.

To make a long story short, the trial court denied the motion to intervene based on its prior stay order. The Third District affirmed that decision. It held that the tenants “do not have a sufficient interest to justify intervention” in the partition action. That is, they were not unit owners or lienholders. Any interest they have is “contingent” on them obtaining a civil judgment against the individual unit owners. But that was not enough to give them a legal interest in the partition action itself.

Contact a Davie Partitions Lawyer

If you are involved in any kind of partition action dealing with real estate, it is best to seek qualified legal representation. Our Davie partition attorney can review your case and advise you of your rights. Contact Valero Law today at 305-607-7011 to schedule a free consultation. We serve clients in Davie, Broward County, Coconut Grove and Miami-Dade County.

Source:

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