Representative Experience
N/AOUTCOME: Reversed in Favor of Client on Appeal
In Beltway Capital, LLC v. The Greens COA, Inc., the Fifth District Court of Appeal clarified the meaning of the term "first mortgagee." The condominium association argued that the statute's safe harbo ... r protection applied only to the original lender or its direct assignee. The trial court agreed and held Beltway Capital liable for all unpaid assessments owed by the prior owner. The Fifth DCA reversed, holding that "first mortgagee" refers to the holder of the mortgage with the highest lien priority, not necessarily the original lender. The court explained that "first" refers to priority of lien rather than chronology. Because Beltway Capital held the first-priority mortgage when it acquired title through foreclosure, it qualified for the statutory safe harbor protection. The decision confirms that the safe harbor provisions of section 718.116(1)(b) apply not only to the original lender, but also to subsequent holders and assignees of the first-priority mortgage.
