Appeals court hands developers loss

Condominium developers saw a loss in the continuing dispute over sales
contracts from the beginning of the downturn. Florida’s Third District
Court of Appeal ruled in favor of two purchasers who sought a refund
from North Carillion, the original developer of the Canyon Ranch in
Miami Beach. The court overturned a ruling by Miami-Dade Judge Herbert
Stettin, who had ruled in favor of the developer. Earlier this year, a
federal judge upheld a buyer’s right to rescind his sales contract if
the developer did not hold separate escrows, which formed a similar
basis to the Third District case. The court disagreed with a tweak made
by Florida lawmakers aimed at protecting developers, finding that an
intention to apply the law retroactively “would impermissibly impair
each buyer’s pre-amendment contract rights.” [SFBJ]