A federal appeals court has, at least for now, put an end to lingering questions about some property insurance claims litigation: The insured does not need to submit a competing damage estimate when filing a supplemental claim if the policy does not require it. Read the article…………………………….
Family fighting keep chickens as pets in Waxhaw neighborhood (NC)
A Union County family that was fined for keeping chickens as pets has scored a big win. The family was originally located in a Waxhaw neighborhood. However, neighborhood rules said they couldn’t own poultry, but they could have household pets as long as you don’t make money off of them. Read the article…………………………….
Do E-mail Exchanges Constitute A Meeting Of The Board? (CA)
In LNSU#1, LLC v. Alta Del Mar Coastal Collection Community Association,94 Cal. App. 5th 1050, 312 Cal. Rptr. 3d 707 (2023), two homeowners in a common interest development argued that their homeowners’ association violated state law governing open meetings when certain directors discussed items of association business by e-mails without giving all association members notice […]
Major Win for HOAs on Enforcing Restrictive Covenants in Washington
As recorded in the court’s decision, in 2018 the View Ridge Estates amended its CC&Rs to declare that: “No trees or other vegetation, in a view and/or view corridor area, shall be taller than a maximum of fifteen (15) feet …. Taller trees and shrubs are permitted so long as no Member’s view is unreasonably […]
Holding Condominium Developers and Their Principals Liable (NY)
In Board of Managers of the Brighton Tower II Condominium v. Brighton Builder, LLC, the Second Department which overseas Brooklyn and Long Island lower courts, issued a decision which clarifies what condo boards and owners have to establish in order to succeed against sponsors and their principals in construction defect cases. The court offered important […]
MHH Condo/Co-op Digest Vol. VI, April 2024 (NY)
Court Of Appeals Decision Threatens To Upend NYC Property Tax System: On March 19, 2024, the New York State Court of Appeals issued a decision in Tax Equity Now NY, LLC v. City of New York et al., Index No. 153759/2017 (Sup. Ct. N.Y. Co.), opening up a path forward to challenging New York City’s […]
When Negotiations Fail: Forcing Your Association’s Neighbor to Grant a License for Protection May Be the Only Way (NY)
Property managers, take heed! A recent court case highlights the power you have to protect your associations when a neighboring building owner does not cooperate in giving a license for protection on their property so that the association can perform its work . In this case, the court awarded a license fee and mandated typical […]
Security firm paying $230K to settle wage-theft case at Chelsea condo (NY)
New York Attorney General Letitia James and city Comptroller Brad Lander on Monday announced a nearly $230,000 settlement with the managers of a Manhattan condo building and a private security firm for underpaying its workers. A joint city and state investigation found that Allied Universal Security Services had for years been underpaying its security guards […]
Condo Boards: Know Your Responsibilities to Avoid Liability (NY)
Condominiums have a contractual duty to maintain common elements. While the business judgment rule normally protects condo board members from personal liability if their choices seem unwise, it won’t shield the condo if the board breaches its contractual obligations to owners. Boards who neglect these responsibilities could open the condominium up to significant liability. Read […]
Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy
A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that […]
State Court Ruling Opens Door for Major Changes to NYC Property Tax System (NY)
A recent state court ruling has created a path toward major changes to New York City’s property tax system — albeit one that could have mixed consequences for co-ops and condos owners. In a 4-3 ruling, the New York Court of Appeals allowed a lawsuit alleging the city’s property tax system is unfair and illegal […]
“Even more difficult.” Here’s how South Florida’s condo buyout landscape will shift following landmark ruling
The developer of the planned Edition Residences in Miami’s Edgewater is on unforeseen footing after a recent ruling that could cost it millions of dollars, and alter the landscape of future condo buyouts and terminations statewide. Two Roads, a Miami and West Palm Beach-based development firm led by Reid Boren and Taylor Collins, completed a […]
Federal judge finds home insurers can be sued for discriminatory risk assessment
A federal judge in Illinois ruled in favor of the U.S. Department of Housing and Urban Development on Tuesday, concluding a 10-year-old case brought against it by a major insurance industry lobbyist group. The Property Casualty Insurers Association of America first filed the suit against the Housing Department in November 2013, asking the court to […]
Homeowner’s discrimination suit against HOA dismissed (VA)
Where a man alleged he was treated differently by his homeowner’s association because of his national origin, but he failed to allege enough factual detail that could plausibly show that his property was similarly situated as the properties owned by his neighbors who were treated differently, his suit was dismissed. Read the article…………………………….
Homeowner Associations: $156,476.33 Is The Fees/Costs Award Against An In Pro Per Plaintiff Who Lost A Demurrer To The HOA And A Subsequent Appeal (CA)
We have posted many times on how attorney’s fees and costs are the “tail that wags the dog in litigation” in homeowner-HOA disputes, resulting in hefty awards for the prevailing party or resulting in a large expenditure fees even though no one is deemed to have prevailed. Harter v. Rancho Rios Homeowners Assn., Case No. […]
Failure to Follow Community Association Governing Documents Leads to Litigation in Florida
A recent opinion out of Florida’s Third District Court of Appeal stresses the importance to read, understand, and follow community association governing documents before initiating any amendments that alter the substantive rights of the association’s members, especially one as critical as the required vote to terminate an association altogether. Read the article…………………………….
Condo Boards and Managers Beware: Ignoring Complaints of Rule Violations Lands You in Court (NY)
A brand new Appellate Court decision underscores condo boards’ duty to act in good faith when residents report violations of building rules and regulations. In the case of Bacharach v. Board of Managers of the Brooks-Van Horn Condominium, the board faced legal action after years of alleged inaction regarding excessive noise complaints. The New York […]
How Strong Is Your Liability Shield? Understanding Bylaws & Board Actions (NY)
Could your condo bylaws save you from a costly lawsuit? A recent Brooklyn court decision highlights the critical role bylaws play when unit owners and their Board of Managers clash. Read the article…………………………….
Arizona Court of Appeals Holds Severance Damages Unavailable for Homeowners Whose Easements were Extinguished in Eminent Domain
The Arizona Court of Appeals recently held that members of a homeowners’ association are not entitled to severance damages to their residential parcels when common areas are condemned. Read the article…………………………….
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. The Reserve II sits feet from the slopes on the top of Sugar Mountain in Avery County. Jeff and Martha Wells have had their home there for more than 10 […]
New Jersey Supreme Court Affirms Condominium’s Ability to Limit Alleged “Emotional Support Animals,” Clarifying the Process To Be Used For ESA Accommodations
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…………………………….