Opinion ID: 427595
Heading Depth: 2
Heading Rank: 2

Heading: Excavations by the Trial Court

Text: 13 The unit owners began making the escalated payments. However, on December 5, 1978, three of the owners and their spouses brought an action against Steinhardt and Goldman in the United States District Court for the Southern District of Florida. The plaintiffs sued as individuals and as representatives of the class of unit owners. They challenged the escalation provision, inter alia, as a gold clause violating section 463. 14 The district court ruled in their favor and awarded damages in an amount equal to the sum illegally collected by the defendants pursuant to the devaluation clause, prior to October 28, 1977. The trial court initially permitted the defendants to escalate rents due on or after October 28, 1977. That holding was based on the 1977 amendment to Section 463. 17 In a subsequent order, however, the court amended its Conclusions of Law and held that the lease obligation was issued prior to October 28, 1977. Therefore, the escalation of any rents pursuant to the devaluation clause was unlawful; and the plaintiffs could recover all monies collected in violation of section 463. The defendants Steinhardt and Goldman [hereinafter referred to collectively as Steinhardt] took an appeal from that judgment.