The issue of whether a homeowner's association that permits a violation of its restrictive covenants is liable in damages in tort was addressed by the Fourth District Court of Appeals in the recent case of Seminole Lakes HOA v. Esnard, Case No 4D18-15 (Florida 4th DCA Dec. 19, 2018). In this case, the association was faced with a "severe parking problem" and therefore permitted on-street parking, despite restrictive covenants prohibiting this activity. The relevant municipal code prohibited on-street parking that interferes with the flow of traffic. Allowing on-street parking occasionally prevented cars from traveling between two cars parked on both sides of the street.

The Esnards were driving on a street that had cars parked on both sides of the streets. The Esnards, Sheldon and Mary Ann, stopped their vehicle for some time to allow an approaching car to pass because only their car or the other car could travel between the parked cars. The stop was neither an emergency stop nor was it sudden. While the Esnards were stopped, their car was rear-ended, totaling the car and causing injuries to Sheldon Esnard.

The Esnards sued the driver of the car as well as the association. The association filed a motion for directed verdict, which was denied. A jury verdict found in favor of the Esnards and apportioned risk between the other driver and the association. On appeal, the court first discussed that in order to be found liable, a party's actions must be the "proximate cause" of the harm and that damages must be proven. "Proximate cause" is defined as "an event sufficiently related to an injury that the courts deem to be the cause of that injury." Then the court examined what the proximate cause of the injury was.