The Solivita class action lawsuit, Norman Gundel, et al. v. AV Homes, Inc., et al. (Case No. 2017-CA-001446), is a Florida case in which roughly 5,500 homeowners in the Solivita 55-and-older community won a $34.8 million judgment against developer Avatar Properties for illegally collecting profit-based “club membership fees.” A first payout covering 100% of past fees went to class members starting in June 2025, and a February 2026 settlement would add another $22.6 million if the court approves it at a final distribution hearing set for July 8, 2026.1Solivita Class Action. FAQs
What the Lawsuit Was About
Solivita sits in the Poinciana area of Polk and Osceola counties. Avatar Properties, a subsidiary of AV Homes that Taylor Morrison acquired in October 2018, built the community and kept ownership of the recreational amenities, branded as the “Solivita Club.”2Orlando Sentinel. Poinciana Residents Win $34.8 Million in HOA Lawsuit Against Developer
Homeowners paid three separate charges: standard association dues, the actual cost of operating the club, and a third “membership fee” that went straight to Avatar as profit. That profit component was reported to bring in more than $4 million a year, adding about $86 a month to each household’s bill.3CCFJ. Florida HOA Wins $38M Against Developer If a resident refused to pay, Avatar could lien the home and start foreclosure.4FindLaw. Avatar Properties, Inc. v. Gundel
Named plaintiffs Norman Gundel, William Mann, and Brenda N. Taylor sued in April 2017. Their central argument rested on Section 720.308 of the Florida Statutes, which limits homeowner assessments to a proportionate share of “expenses.” Profit, they said, is not an expense.4FindLaw. Avatar Properties, Inc. v. Gundel
On November 2, 2021, Circuit Judge Wayne Durden entered a final judgment of $34,786,034.48 covering illegal club fees collected from May 2013 through February 2021, and issued a permanent injunction barring Avatar from charging the fee going forward.5Solivita Class Action. Avatar Final Judgment6WTSP. HOA Fees Improper, Florida Judge Rules On June 22, 2023, Florida’s Sixth District Court of Appeal affirmed in full, holding that “expenses” under Section 720.308 does not include profit and that statutory rights under Chapter 720 cannot be waived by contract. The court also rejected Avatar’s “voluntary payment” defense, since homeowners paid under threat of liens and foreclosure.4FindLaw. Avatar Properties, Inc. v. Gundel The Florida Supreme Court declined jurisdiction on November 2, 2023, letting the ruling stand.7Solivita Class Action. Avatar Motion for Final Distribution
The First Payout to Homeowners
After the Florida Supreme Court declined to hear the case, Avatar paid $64,665,695.72 into a common fund held by Raymond James Trust in December 2023.7Solivita Class Action. Avatar Motion for Final Distribution
On January 27, 2025, the court approved a partial pro rata distribution. The administrator, A.B. Data, Ltd., mailed proposed distribution amounts to class members by mid-February 2025 and gave homeowners 60 days to submit any corrections. Payments began going out in June 2025 and returned 100% of past club membership fees paid between April 26, 2013, and November 30, 2023, including the 7% sales tax.8Solivita Class Action. Home1Solivita Class Action. FAQs
At the time of the trial court ruling, class counsel Carter Andersen told reporters each resident could receive up to $10,000, and named plaintiff Norm Gundel estimated the injunction would save each homeowner about $1,000 a year going forward.9News4Jax. Florida Judge Awards Nearly $35 Million in Improper HOA Fees
The 2026 Settlement and July Distribution Hearing
On February 20, 2026, Avatar and the class signed an agreement to close out what was left of the case. Taylor Morrison will pay an additional $22.6 million to resolve three open matters: the appeal of a $23.1 million prevailing-party attorney fee award, the plaintiffs’ motion for contempt, and an appeal over whether the club itself must be turned over to the homeowners’ association.1Solivita Class Action. FAQs
The contempt motion, filed in January 2026, alleged that Avatar had continued to extract profits after the injunction through advertising sales in the community newsletter and ticket sales for neighborhood events, revenue the homeowners said should offset club expenses.10Orlando Sentinel. Florida Senator Wants to Outlaw Forever Fees for Community Amenities
The deal has two conditions. The Solivita Homeowners Association must complete its purchase of the Solivita Club, and the court must give final approval. The Joint Motion for Approval and Final Distribution is set to be heard on July 8, 2026. If the court signs off, class members should receive a second payment estimated at roughly one-third the size of the first distribution.1Solivita Class Action. FAQs
Who Is in the Class
The class covers all persons who owned or previously owned a home in Solivita and paid a club membership fee on or after April 26, 2013, and who did not opt out. Former owners are included; the Second District Court of Appeal affirmed and expanded the class to cover them.1Solivita Class Action. FAQs5Solivita Class Action. Avatar Final Judgment
How to Reach the Claims Administrator
A.B. Data, Ltd. is handling notices, address corrections, and payments. Class members can call 1-800-494-9209, email info@SolivitaClassAction.com, or write to Avatar Class Action, c/o A.B. Data, Ltd., P.O. Box 170500, Milwaukee, WI 53217.11Solivita Class Action. Contact Information If you moved after receiving the first distribution notice, updating your mailing address with the administrator is the practical step before the July 2026 hearing.
Related Cases at Other Communities
This settlement does not pay residents of any community other than Solivita. Homeowners at Bellalago, another AV Homes legacy community of roughly 2,500 lots in Poinciana, filed a similar suit in 2020 (Case No. 2020-CA-002033) that was stayed pending the Solivita outcome. The Bellalago court has certified a class, but as of early 2025 there was no merits ruling or settlement.12Bellalago Class Action. Bellalago Class Action13SEC. Taylor Morrison Home Corporation Form 8-K A separate class action by ChampionsGate homeowners against Lennar Homes over Oasis Club fees, Schwarz v. Lennar Homes LLC (Case No. 6:25-cv-00466, M.D. Florida), is set for a jury trial in January 2027.14CourtListener. Schwarz v. Lennar Homes LLC