Originally believed to be trumped by various Florida laws specifying the allocation of delinquent assessment payments, Accord and Satisfaction is back.  In the case of St. Croix Lane Trust v. St. Croix Pelican Marsh Condo. Association, Case No. 2D13-3636., FLA 2d DCA (2014) a delinquent owner tendered payment to the association accompanied by a letter from the owner’s attorney.  The attorneys’ letter stated in pertinent part:

At worst[,] my client only owes the pro rata first quarter assessment for the period of its ownership. However, in a good faith effort to resolve this matter I have enclosed herewith a check in the amount of $840.00 payable to your Trust Account for the full January 1, 2012 assessment. Be advised and warned, this check is tendered in full and final satisfaction of all claims made against the Trust and the property for the amounts demanded in your May 7, 2012 correspondence. Regardless of intent, negotiation of the enclosed check shall be deemed an acceptance of the offer of settlement made herein, and shall be in full and final satisfaction of all claims against the Trust and the property. . . as more particularly set forth in your May 7, 2012 correspondence.he was in doubt as to the amount owed and the amount tendered is.

Wrongfully assuming Florida law’s regarding payment allocation for delinquent assessments (Florida Statute Section 718.116(3) would bar the application of Accord and Satisfaction and the full amount remained due and owing, the Association’s attorney advised his client to deposit the partial payment.  Having deposited the owner’s partial payment, the Court found there were no further amounts owed by the delinquent owner.  The court reasoned Florida Statute Section 718.116(3) governs the application of payments, not the actual amount owed.  As such, a partial payment that meets all of the requirements for an Accord and Satisfaction extinguishes the obligation for future payments upon its depositing by the association.  The Court further held a restrictive endorsement on a check regarding the allocation of payments, in direct contrast to Florida Statute Section 718.116(3), would not be valid.

Collecting delinquent assessments from condominium or homeowner association members is fraught with costly legal minefields. Community associations hiring attorneys that are not experienced in this area can be very expensive.