In the recent decision of First Equitable Realty III v. Grandview Palace Condominium Association, Florida's Third District Court of Appeal ruled that the trial court erred in decreasing the amount of interest awarded to the association in a collection case due to “equitable considerations” and reiterated that equity does not afford defenses to delinquent unit owners in such actions.

In First Equitable, the condominium association filed suit to recover unpaid assessments from a delinquent unit owner which asserted counterclaims for unjust enrichment and rescission. As part of the defense, the unit owner claimed that it was not responsible for the assessments because the association was itself responsible for protracted litigation giving rise to the association's right to pursue the unpaid assessments and that the association had failed to mitigate its damages. The trial court ruled in favor of the association, but reduced the amount of interest on the unpaid assessments awarded because of “equitable considerations.”

On appeal, the Third District affirmed the entry of final summary judgment in the association's favor but held that the reduction in interest owed on the unpaid assessments was improper. Judge Scales on behalf of a unanimous panel wrote: “Equity has no role. Under the plain and unambiguous language of [Florida Statute] section 718.116(3), the association was entitled to recover interest at the rate provided in the declaration, from the due date until paid. The trial court had no discretion to award anything less in this case.”