On Wednesday, March 13th, New Jersey’s Supreme Court released its long-awaited decision in the Players Place II Condominium Association v. K.P. case. In 2018, a resident claiming to be disabled for New Jersey’s Law Against Discrimination (“LAD”) adopted a dog that would ultimately weigh almost 65 lbs. despite Players Place II’s rule prohibiting dogs weighing […]
Farmers condo insurance case explores exclusion clauses (WA)
The Gardens Condominium v. Farmers Insurance Exchange case revolves around an all-risk insurance policy issued by Farmers Insurance Exchange to The Gardens Condominium. The policy was designed to cover any direct physical loss unless caused by an excluded event. Notably, the policy included an exclusion for faulty, inadequate, or defective workmanship but also contained a […]
Business Judgment Rule: How to Protect Your Board (NY)
The recent case of Levy v. 103-25 68th Ave. Owners, Inc. offers some valuable insights for property managers and board members within cooperative housing communities. In June 2018, the Levys commenced this action against the co-op defendants and the occupants of the neighboring apartment, alleging, inter alia, that the co-op defendants exceeded the scope of […]
New York Court Decision Highlights the Importance of Corporate Guidance for Board Member Protection (NY)
A recent New York Appellate Division decision (Cortlandt Street Recovery Corp. v. Bonderman) underscores the significance of retaining experienced corporate counsel to protect both corporations and their board members from potential liability. The court rejected the plaintiff’s attempt to hold various related entities collectively liable for the actions of one, highlighting the complex challenges in […]
Say What? Court Says Boards Can E-mail (CA)
The Court of Appeals for the Fourth Appellate District recently handed down a landmark decision impacting HOA governance. In LNSU #1 v. Alta Del Mar Coastal Collection Community Association, the court delves into the issue of e-mail communications between board members. For better or worse, the court essentially eviscerates the transparency component of the Open […]
No Super Lien for You: New Case on the Priority of HOA Liens in North Dakota
In a case of first impression, the North Dakota Supreme Court ruled that, despite the language of a declaration of covenants and restrictions to the contrary, a homeowners’ association (HOA) lien for unpaid assessments does not have super priority over a later recorded mortgage. In the Industrial Commission of North Dakota v. Gould, 2024 ND […]
New York Class Action Settlement Impacts Foreclosure Proceedings: What Condo and HOA Boards and Management Need to Know
A recent class-action settlement addressing foreclosure procedures in New York State has significant implications for condominium and homeowners’ associations (HOAs) that have owners in arrears. The law involved only applies to foreclosures of home loans, and not condo and HOA foreclosure of common charge liens and experienced counsel need to make this clear at the […]
HOA members obstructed access to riverfront pier — $400,500 verdict (VA)
Plaintiffs included a homeowner’s association in Gloucester County and several of its lot-owning members. Defendants are also members of the homeowner’s association with a waterfront lot within the subdivision. Defendants’ waterfront lot is encumbered by half of a 15-foot ingress and egress easement to a community pier, which pier is affixed within the easement above […]
Arizona Court of Appeals Addresses Proximity Damages in State of Arizona v. Foothills Reserve Master Owners Association, Inc.
On December 7, 2023, the Arizona Court of Appeals held in State of Arizona v. Foothills Reserve Master Owners Association, Inc. that 589 homeowners in an Ahwatukee subdivision were not entitled to “proximity damages” after the State of Arizona condemned their easement interests in the subdivision’s common areas.1 Read the article…………………………….
Court Held That Deed For Common Area To Homeowners’ Association Did Not Create A Trust For The Members
In BLF LLC v. Landing at Blanco Prop. Owners Ass’n, member of a home owners association sued to prevent the association from selling certain common area property. No. 03-22-00423-CV, 2023 Tex. App. LEXIS 9300 (Tex. App.—Austin December 13, 2023, no pet. history). Among other theories, the members alleged that the trust existed for their benefit. […]
Judge rules on Airbnb dispute that turned nasty in divided Tennessee mountain town
A national debate about Airbnbs became local in an East Tennessee neighborhood where the homeowners association sued some of its own members who used their homes as short-term vacation rentals. Read the article…………………………….
Corporate Transparency Act Found Unconstitutional
In the case titled, The National Small Business United, b/b/a the National Small Business Association, et al v. Janet Yellen, in her official capacity as Secretary of the Treasury, et al., Case No. 5:22-cv-1448-LCB, United States, District Court, Northern District of Alabama, Northeastern Division entered on March 1, 2024, the court found the CTA to […]
Breaking News: Federal Court Ruled Corporate Transparency Act Unconstitutional – Beneficial Ownership Information Reporting on Hold
In a surprise decision Friday night, a federal district court ruled that the Corporate Transparency Act (“CTA”) is unconstitutional, effectively placing the Beneficial Ownership Information (BOI) reporting on hold. By way of background, the CTA was enacted on January 1, 2021 as part of the 2021 National Defense Authorization Act as an attempt to prevent […]
Homeowner Associations: Attorney’s Fees Are Not Fiduciary Duty Breach Tort Damages And $1.328 Million Fee Award Against Individual Directors Under Civil Code Section 5975 Reversed As A Matter Of Law. (CA)
In Colyear v. Rolling Hills Community Assn. of Rancho Palos Verdes, Case No. B308382 (2d Dist., Div. 4 Mar. 1, 2024) (partially published; fee discussion not published), plaintiff homeowner won a declaratory relief action based on a dispute over tree-trimming covenants in certain recorded Declarations, with the lower court awarding plaintiff over $1.328 million in […]
Is Your Board Making These Critical Mistakes? Essential Risk Management Tips
In a recent New York case, 72 Poplar Townhouse, LLC v Board of Managers of the 72 Poplar Street Condominium, a series of critical issues arose that have wide-reaching implications for condo, coop, and HOA boards. This case highlights the potential consequences of unclear bylaws, the importance of meticulous records, and the complex power dynamics […]
NJ Appellate Division Reverses Certain Radburn Regulations Impacting Community Associations
On February 23, 2024, the Superior Court of New Jersey Appellate Division issued its opinion in a case involving regulations promulgated by the New Jersey Department of Community Affairs (DCA) – commonly referred to as the Radburn Regulations – which impose specific requirements on the election process for community associations throughout New Jersey and other […]
Legal battle may resume between Lake Oswego condo association and builder of new luxury penthouses (OR)
A Lake Oswego condominium association recently asked the Clackamas County Circuit Court to reopen a civil case against the owners of a luxury complex along State Street. The Oswego Talisman Condominium Association had initially filed a lawsuit against the owners of the future Frances condominiums, Hugh Development (and its affiliated LLC North D State), over […]
Court of Appeals Resolves Dispute Between Competing Community Association Boards (WA)
There was recently litigation to determine which of two competing boards of directors of a community association had the right to access the association’s bank accounts. One of the litigants originally served on the association’s board as an appointed director and president. Read the article…………………………….
Naugatuck Woman Secures $250,000 Settlement After Fall on Ice (CT)
A 55-year-old Naugatuck woman, who injured her left ankle, back and neck when she fell on ice and snow in a condominium complex, has settled her case for $250,000. Natalia Dubrovinskaya was taking out the garbage for her boyfriend, who lived at the Hidden Brook condominiums in Naugatuck, when she slipped and fell, Read the article…………………………….
Key Rulings for Condominium Associations in Square Lake Hills Association v Russel Garland and Highlander Group MMC, Inc. (MI)
On March 23, 2023, the Michigan Court of Appeals decided several important issues in favor of Michigan condominium associations. In Square Lake Hills Association v Russel Garland and Highlander Group MMC, Inc et al, unpublished opinion of the Court of Appeals, (Docket No. 360405), the Court of Appeals made the following rulings: Read the article…………………………….
Deed restriction may frustrate lender’s foreclosure on real estate development (RI)
The redeveloper of the former Memorial Hospital campus in Pawtucket could challenge a lender’s foreclosure on the property based on the alleged invalidity of the mortgage that it defaulted on, a Superior Court judge has found. Defendant Memorial Development LLC took out a $3.5 million mortgage on the property in 2022, which the original lender […]
Court must provide ‘concise but clear explanation’ for reduced fee award (VA)
A trial court’s failure to explain its reduction of attorneys’ fees awarded to the plaintiffs — who substantially prevailed in litigation against a homeowners’ association — resulted in the Virginia Court of Appeals remanding the case for reconsideration. Read the article…………………………….
Hotel-Condominium Governance Litigation: Could IconBrickell Go National?
In 2020, the Florida Third District Court of Appeal issued the IconBrickell decision that has had a profound effect on the way practitioners and developers think about the legal landscape of mixed-use properties throughout the state of Florida, particularly branded residential condominiums. In IconBrickell Condominium No. Three Association v. New Media Consulting, 310 So.3d 477 […]
Hoarding in Condominiums: When Individual Rights Clash with Community Concerns
The recent case of Board of Managers of the 48-54 West 138th Street Condominium v. Flora Burdock highlights the complexities that arise when an individual unit owner’s behavior impacts the health, safety, and well-being of a condominium community. In this case, the condominium board sought legal intervention to address a severe hoarding situation within Ms. […]
When to File a Breach of Contract Lawsuit or How Long is Too Long? (CO)
The Colorado Supreme Court recently issued a decision that significantly impacts common interest communities’ need to enforce contracts by filing a lawsuit or an arbitration proceeding. This decision affects the timing considerations of when such proceedings must be filed. Read the article…………………………….
When Is an HOA/Condo Rental Amendment Unreasonable? (NC)
When it comes to declaration amendments, our firm is most often asked about restrictions on rentals, whether complete or percentage bans, restrictions on short-term rentals, or limiting corporate rentals. In a decision issued this week (February 21, 2024), the North Carolina Court of Appeals struck down a condominium rental amendment as unreasonable. Read the […]
Court sides with homeowners in NC ski country who want short-term rentals
After a homeowners association in the North Carolina High Country tried to block short-term rentals during ski season, a court has ruled against the HOA. Read the article…………………………….
When to File a Breach of Contract Lawsuit or How Long is Too Long? (CO)
The Colorado Supreme Court recently issued a decision that significantly impacts common interest communities’ need to enforce contracts by filing a lawsuit or an arbitration proceeding. This decision affects the timing considerations of when such proceedings must be filed. Read the article…………………………….
Idaho Supreme Court sides with developer in Teton County case
The case arises from a dispute regarding a condominium development and dates back to 1995. That’s when a lot in Driggs was approved for Planned Unit Development with up to 16 standalone condominiums. In 1995, TCR’s lot owned by TCR, LLC, the developer of Teton Creek Resor, was approved for Planned Unit Development with 16 […]
Discrimination in HOAs: A Claim That Must Be Taken Seriously
Attorneys have seen an uptick in cases of alleged discrimiation in HOAs and condo associations. Complaints can become costly and stressful for an association. Read the article…………………………….
Threat of Litigation Not a Good Idea when it comes to Housing Discrimination Complaints (NY)
New York’s highest court decided that the threat of litigation may support a retaliation claim under the New York State Human Rights Law. The Human Rights Law prohibits retaliation against those who make discrimination complaints or engage in other protected activity. The New York Court of Appeals definitively decided that the threat of litigation itself […]
Enhancing Governance: Lessons from a Recent Condo Board and Property Management Company Lawsuit (NY)
Condo Boards and their Property Management Companies play a crucial role in maintaining harmony within residential communities. A recent legal battle involving the Sky House Condominium sheds light on the importance of meticulous governance to avoid potential pitfalls. Read the article…………………………….
Navigating Sidewalk Shed Disputes: Insights for Condo or Coop Boards (NY)
The court’s decision in 157 W 18 OWNER, LLC v. THE BOARD OF MANAGERS OF THE SLATE CONDOMINIUMS provides clarity on the interpretation of RPAPL 871 and the enforcement of Building Code requirements in construction-related disputes. The ruling underscores the importance of demonstrating a substantial encroachment and balancing equities when seeking injunctive relief for property […]
Community Association Board Members can be Sued for Breach of Fiduciary Duty (NY)
The Board of Managers of the 72 Poplar Street Condominium and individual board members were sued by a unit owner who was overcharged common charges. The Board allegedly knew about the overcharge and eventually refunded the overpayments to the owner, and then called a unit owner vote to amend the Condominium’s bylaws to change the […]
Second Legacy Lodge case appealed to Wyoming Supreme Court
The Rafter J Ranch Homeowners Association is asking the Wyoming Supreme Court to overturn a lower court’s decision in a lawsuit over the future of the former Legacy Lodge building. Monday’s appeal from HOA attorney Kevin Gregory marks the second case that has been taken to the high court regarding a 57-unit building in Rafter […]
Court Holds Federal Law Governs FAA Arbitration Dispute Related to Surplus Lines Insurance Contract
Harbor Homeowner’s Association Inc. sued its insurers in Louisiana state court seeking to recover damages allegedly caused by the insurers’ failure to pay claims related to Hurricane Ida. The insurers removed to federal court, arguing that the action related to an arbitration agreement falling under the Federal Arbitration Act (FAA) and the Convention on the […]
Five Factors a Court Will Likely Consider to Determine Validity and Enforceability of Amendments Recorded by Developers (SC)
The 2006 Court of Appeals case of Queens Grant II Horizontal Property Regime vs. Greenwood Development Corporation (368 S.C. 342) provides guidance for validity of amendments to the Declaration/Master Deed (Declaration) recorded by Developers/Declarants (Developer). Read the article…………………………….
Court Rules that Restrictive Covenant Banning Sex Offenders is Enforceable
Can your HOA’s restrictive covenants or condominium documents ban sex offenders? The ability to ban sex offenders from homeowners associations has become a controversial issue in recent years. Until recently, many attorneys across the country believed that some type of ban on sex offenders was permissible. This was largely based on a New Jersy case, […]
IN Tax Court dismisses appeal in Marion County, HOAs assessment dispute
A group of Marion County homeowners’ associations prematurely filed an appeal of their property assessment case’s dismissal at the administrative level, the Indiana Tax Court ruled in granting a motion to dismiss the appeal and remanding the case to the Indiana Board of Tax Review. Read the article………………………………..
Persimmon Hill – Huge Impact on South Carolina Construction and Insurance Industries
The Persimmon Hill decision is one of the most impactful South Carolina insurance coverage decisions in years. The 58-page opinion authored by Justice Konduros addresses myriad issues including insuring agreements, obligations owed to insureds and additional insureds, bad faith, and an alternative to the “time on risk” allocation formula. Read the article………………………..
How a 1970s clerical error paved the way for Mattamy Homes to build on shuttered golf course (FL)
Circuit Court Judge G. Joseph Curley recently ruled that Mattamy Homes was not bound by an agreement signed in the 1970s that restricted the use of the golf course to recreational activity because the agreement was never formally recorded with the Palm Beach County Clerk’s Office. Read the article…………………………….
South Carolina Court Alters Time-on-Risk Approach, Holds Insurer Responsible for Unresponsive Insured’s Defense
The South Carolina Court of Appeals recently affirmed a $27.3 million judgment against an insurer. It held that the insurer acted in bad faith in failing to defend its insured and the general contractor in a construction defect suit involving a Berkeley County townhome community. Read the article…………………………….
Major Ruling: Illinois Supreme Court Provides Clarity and Changes Precedent on CGL Coverage for Defective Work
The Illinois Supreme Court recently upended decades of Illinois caselaw regarding coverage under commercial general liability (CGL) policies, aligning Illinois with most states on the issue. On November 30, 2023, the Illinois Supreme Court unanimously held in Acuity v. M/I Homes of Chicago, LLC that the “your work” exception under CGL policies did not prevent […]
Condo group sues State Farm for water damage 30 years too late: Court (WA)
A Tacoma, Washington, condominium association that sued a State Farm Insurance Co. unit for water damage filed its suit nearly 30 years too late, a federal appeals court ruled Monday, affirming a lower court ruling. Read the article………………………………..
Appellate court rules for Gran Paradiso residents in North Port irrigation fee lawsuit (FL)
A state appellate court sided with Gran Paradiso Property Owners in their suit against the West Villages Improvement District over a 100-year contract for irrigation water that the residents say is both too long and too high. Read the article…………………………….
Illinois court asked: Are defects covered by general liability insurance?
The ruling, passed down from the state’s supreme court, could affect which issues contractors choose to litigate with insurers across the country. Read the article…………………..
Court of Appeals Decides that HOA Is Not Required to Enforce Parking Restrictions (WA)
The Washington Court of Appeals has issued an unpublished opinion concerning a property owner’s claim that his homeowners association is legally obligated to enforce parking restrictions. Read the article……………………………
S. Carolina Insurer’s Bad Faith Causes $27M Loss from Policies with $2.5M Limit
A panel of the South Carolina Court of Appeals on Wednesday affirmed a trial court order requiring Pennsylvania National Mutual Casualty Insurance Co. to pay an award totaling $27,339,535.46 to developer Portrait Homes and the Persimmon Hill Homeowner’ Association, even though the policies it sold Castillo’s company provided only $2.5 million in coverage. Read the […]
Money & the Law: Fight over parking spot ensnares courts (CO)
It has long been my belief that civil litigation has replaced horse racing as the sport of kings, and may be more expensive. A case decided in October by the Colorado Court of Appeals added further evidence in support of my belief. The lawsuit at issue here involved a parking space in an open-air parking […]
Maryland judge sides with insurer in dispute involving 22 damaged condo roofs
A condo association submitted a claim to Philadelphia Indemnity, alleging a storm damaged the roofs of 22 condominium buildings that required replacement, claiming the replacement costs of the roofs totaled more than $1.1 million. Meanwhile, Philadelphia Indemnity estimated that the storm-related damages and repairs came in around $38,000. Read the article…………………………………