Sunday, November 29, 2009

Third District Affirms Dismissal Of Interstate Land Sales Full Disclosure Act Action

In CRC 1803, LLC v. North Carillon, LLC (3D08-3137), the Third District affirmed the dismissal of a lawsuit brought for revocation of a contract based on 15 U.S.C. section 1703 (a)(1)(B), the Interstate Land Sales Full Disclosure Act (ILSA).
The complaint alleges that North Carillon failed to provide a property report prior to CRC signing the contract as required by 15 U.S.C. section 1703 (a)(1)(B). North Carillon responded with a motion to dismiss, arguing that as section 1703 of the ILSA contains a two-year limitations period, and as CRC signed the contract on May 1, 2006, and filed suit on May 2, 2008, its revocation claim is barred. CRC argued that the claim was not barred because the contract was actually fully executed on May 22, 2006, when North Carillon signed. The trial court heard arguments and concluded that, based on these facts, 15 U.S.C. § 1703 required CRC to have filed its complaint within two years after CRC signed the purchase contract and, as it did not, it was time barred from filing for revocation. The court granted North Carillon’s motion to dismiss,1 with prejudice, and based on these facts, we affirm.


Post a Comment