By Jean Winters — August 30th, 2013

On Wednesday, the Fourth District Court of Appeals issued another opinion with significant ramifications for Florida community associations. In Yang v. Sebasian Lakes Condominium Assoc., Inc., the Court reversed a summary judgment on behalf of the association, in an assessment foreclosure case. The 4th DCA ordered the trial court to enter a “directed verdict” on behalf of the homeowners.

At trial, the Association introduced the ledger of the previous management company’s accountant to show a beginning balance. That ledger was hearsay because it was an out of court statement introduced as evidence of the truth of the matter asserted. Hearsay is not admissible as evidence, unless it falls within a recognized exception. Associations frequently use the “business records” exception to hearsay to introduce ledgers into evidence (in an assessment foreclosure case). The Association must lay a “foundation”, by showing that (1) the record was made at or near the time of the event; (2) was made by or from information transmitted by a person with knowledge; (3) was kept in the ordinary course of a regularly conducted business activity and (4) that it was a regular practice of the association to make such a record.    Read more……