The fee substantiation requirement in California state courts is much less than in federal courts. Federal courts favor submission of detailed timesheets, while attorney declarations and the trial judge’s perception of the work can indeed support fee recovery in California state courts. Read the article……………….
225,000 Fee Recovery In Favor Of HOA And Against Losing Condo Owner Affirmed On Appeal (CA)
We have done many posts showing how HOAs or owners can be subject to substantial fee exposure for losing HOA-owner disputes. Seahaus La Jolla Owners Assn. v. Witt, Case No. D071229 (4th Dist., Div. 1 Nov. 27, 2018) (unpublished) illustrates how this can happen, with the non-prevailing condo owner hit with $225,000 in fees in […]
Ex-Board Member of Homeowner’s Association Sues for Improper Removal; Awarded a Proper Removal (DE)
In Beck v. Greim c/o Bombay Woods Maintenance Corp., the Delaware Chancery Court issued a Master’s Report making recommendations regarding a dispute between a homeowner, who had served as a director and officer of the homeowner’s association, and the homeowner’s association and its president, concerning alleged violations of Delaware General Corporation Laws and the association’s […]
Pennsylvania Man Not Entitled to Attorneys’ Fees in Homeowners Association Declaration Amendment Lawsuit
The Commonwealth Court of Pennsylvania ruled this month that a man from Pittsburgh is not entitled to recover attorneys’ fees and court costs from litigation he won against his homeowners association. Matthew Serota filed suit against the London-Towne Homeowners Association in 2015 after the association amended its Declaration of Covenants, Conditions and Restrictions (the “Declaration”) […]
Unsafe Balconies, Water Leaks, Other Flaws Claimed at Luxury Sunny Isles Beach Condo (FL)
Sunny Isles Beach’s luxury Regalia condominium, where each unit takes up an entire floor and has floor-to-ceiling glass walls, needs $30 million in repairs due to construction and design defects, an attorney for residents said. Problems include safety hazards like using the wrong or no screws for balcony railings and putting electrical grills meant only […]
Court Addresses HOA Attempt to Restrict Short Term Rentals (TX)
In a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA issued notices of violation; […]
Appellate Ruling Limits Viability of Blanket Receiverships (FL)
Lack of proper notice was central to the Third District Court of Appeal’s decision in Federal National Mortgage Association v. JKM Services, LLC, Case No. 3D17-370 (Fla. 3d DCA October 3, 2018) limiting a receiver’s ability to recover fees and costs incurred in his efforts to collect rent after having been appointed by a condominium […]
Developers Properly Denied $1.950 Million In Attorney’s Fees Against HOA Under Either Civil Code Section 1717 Or The Common Fund/Substantial Benefit Doctrine (CA)
Market Lofts Community Assn. v. 9th Street Market Lofts, LLC, Case Nos. B280446/B282412 (2d Dist., Div. 2 Nov. 13, 2018) (unpublished) involved a case where an HOA lost a suit against Developers based on a Parking License Agreement (PLA) to which HOA was not a party, with the PLA containing a fees clause. HOA was […]
Appeals panel: Lawyer’s lawsuit vs condo board over parking space groundless, but not a SLAPP (IL)
An Illinois appeals panel says a Loop condo owner’s lawsuit against his association board over a parking space was groundless, but the man shouldn’t be forced to pay the board’s legal defense costs, because the lawsuit didn’t come in retaliation for the board’s prior legal action against him. Read the article…………………
Association Not Liable for Accidental Death in Common Element Hot Tub (OH)
The Fairfield County Court of Common Pleas recently issued a decision on an association’s liability for a death in the common elements. An owner reserved the association’s pool and hot tub area for an extended family party. Tragically, a two year old child drowned in the hot tub, which broke and was closed that very […]
Arbitrator Not Found to Exceed its Powers (CA)
It is well settled that an association’s CC&Rs (“Declaration”) establishes and controls, among other things, a board’s authority to govern an association provided that the CC&Rs do not conflict with California law and regulations (i.e., Davis-Stirling Act). In such cases, the plain language of the CC&Rs control. (Franklin v. Marie Antoinette Condominium Owners Assn. (1993) […]
Nevada Supreme Court Holds CPL Does Not Protect Loan Assignee
The Nevada Supreme Court recently held that the assignee of a deed of trust was not entitled to bring a claim against the title insurance company arising out of the closing protection letter. See PennyMac Holdings, LLC v. Fid. Nat’l Ins. Co., 423 P.3d 608 (Nev. 2018). In the case, a title agent issued a […]
Wisconsin Supreme Court to hear Sister Bay condo association lawsuit
The Wisconsin Supreme Court has scheduled oral arguments for Nov. 5 in a lawsuit by the Yacht Club at Sister Bay Condominium Association against the Village of Sister Bay regarding noise from concerts at the municipal band shell. Read the article………………..
RGJ investigates: Somersett rock wall failures in Reno test Nevada construction defect law (NV)
Desert shrubs and three small pine trees dotted a dirt slope overlooking the Somersett Golf and Country Club one morning in August. Just below, a golf cart traveled a paved concrete path while a handful of golfers walked the course nearby………….At the center of the ongoing battle at Somersett is that same dirt slope — […]
Attorney can’t be sued by non-client, Colo. court rules; Dispute arose over condo parking spaces (CO)
The Colorado Supreme Court determined that a non-client plaintiff was barred from suing an attorney because he lacked standing to assert his claim. The Sept. 24 decision reverses an earlier Colorado Court of Appeals ruling that found that the plaintiff had standing despite the strict privity rule, which bars complaints against attorney’s by non-clients except […]
Turtle Rock III vs. Fisher – The Effect of Fine Enforceability in Arizona HOAs (AZ)
Last year, the Arizona Court of Appeals decided the case of Turtle Rock III Homeowners Association v. Fisher, resulting in a landmark ruling with the potential to have a major impact on an Arizona association’s ability to assess and collect fines. In its ruling, the Court of Appeals held that an association must: Read […]
State supreme court will not hear case of unit owner fined for expressing opinions (IL)
The Supreme Court of Illinois will not consider the case of a unit owner fined for expressing opinions about his condo board. Michael Boucher successfully sued 111 East Chestnut Condominium Association and seven of its board members after they imposed a $500 fine against him for allegedly violating condo rules that prohibit “obnoxious or offensive […]
$7.5M Verdict Against Condo Association Should Have Been Prevented (FL)
The recent $7.5 million verdict for a St. Petersburg, Florida, condominium resident to compensate him for the injuries that he sustained in his community’s hot tub is a telling example of the potential ramifications that can result when any defects in the working condition of these amenities are not properly addressed. Read the article………………
TJPA: Ruling Limits Taxpayer Liability in Millennium Tower Legal Costs Fight (CA)
The Transbay Joint Powers Authority (TJPA) announced Monday that a court ruling last week may require the TJPA to pay in the future just a fraction of the legal costs sought by Mission Street Development (MSD), the developer of the sinking and tilting Millennium Tower. On September 20, 2018, San Francisco Superior Court Judge Curtis […]
Court Ruling Complicates Condominium Member Lawsuits (FL)
A recent decision from an appellate court in Tallahassee will likely create significant hurdles for condominium unit owners who wish to sue their association and its directors for wrongdoing that affects the entire membership. In Iezzi v Edgewater, the First District Court of Appeal held that members of a not-for-profit condominium association must comply with […]
Condominium Board Wins Dispute Over Emotional-Support Dog
Requests to keep emotional support animals in condominiums with pet restrictions appear to be on the rise, and condominium boards are generally well advised to grant reasonable accommodations in order to avoid running afoul of state and federal fair housing laws. Read the article…………………………
Due Process Debate Impacts Condo Management With New Legal Ruling (IL)
Condo associations in Chicago might soon have a harder time managing difficult condo owners. Based on an Illinois Appellate Court decision, owners accused of unruly behavior cannot be fined without first being given due process. Owners must have the opportunity to review any evidence of the alleged incident and cross-examine witnesses. Illinois condo associations that […]
Court rules in favor of West Chester homeowner’s association sued by woman who slipped on fallen branches (PA)
The Superior Court of Pennsylvania affirmed a ruling relieving Indian King Residents Association (IKRA) of liability for a resident’s injuries. Plaintiff-appellant Ruthann Hackett injured herself in 2013 after slipping on fallen branches in a common area managed by IKRA. The court determined that appellant was a licensee on the land. In the ruling, Judge Jacqueline […]
Another Victory for Condominium Associations with Regard to Rental Restrictions (IL)
Earlier this summer, Tressler LLP obtained dismissal of a source of income discrimination claim filed by an owner against a Chicago condominium association. On June 23, 2018, the City of Chicago Commission of Human Relations issued a lengthy written opinion holding that a condominium association’s restriction on leasing forbidding owners from renting their units via […]
Appeals court upholds ruling favoring Florida master condo association (FL)
The U.S. Third District Court of Appeal affirmed Aug. 8 that a lower court ruling asserting that a master condo association does not have the same responsibilities as a sub-association. Appellant Benedetto Dimitri owns six condominium units in a development controlled by the defendant, the Commercial Center of Miami Master Association. Although the master association […]
Courts Address Condo Laws, But Questions Remain (IL)
The myriad issues plaguing the Illinois Condominium Law arena have been subject to several recent opinions from two separate divisions within the 1st District Appellate Court. Unfortunately, the contrasting court rulings ultimately serve to confuse more than clarify. The string of new cases all focus on a particular section of the Illinois Condominium Property Act, […]
Changing Your Restrictive Covenants (NC)
The North Carolina Court of Appeals recently rendered an opinion reiterating that all amendments to the restrictive covenants (“CCRs”) governing a planned community must be reasonable. As background, the existing law is that amendments to the CCRs must be reasonable in light of the developer’s original intent for the subdivision. This rule arose in the […]
South Carolina Court Affirms Lien Foreclosure
A recent class action lawsuit in the U.S. District Court of South Carolina served as another chapter in the national debate of the legality of lien foreclosure for community association assessments. In January 2018, seven South Carolina real estate owners in community associations, sued not only their seven associations but also six management companies and […]
The Other Two Landmark Cases Every Board Needs to Know (NY)
In a recent post, I discussed the three landmark legal decisions that were most influential in shaping the scope and limitations of co-op and condo boards’ powers. Today I add the final two that comprise the Big Five. Read the article………………
Court: Association Declaration’s Reference to Alterations Encompasses Material Alterations (FL)
The approval of board-proposed alterations to a condominium association’s common elements sometimes requires adherence to the general process prescribed by Florida law, which calls for an affirmative vote from at least 75 percent of the total voting interests in the association. Read the article………………
Ruling Changes How Boards Keep Minutes and Provide Evidence for Violations (IL)
“Business as usual” for Illinois condo boards has now changed. A very big decision by the Illinois appellate court (First District) makes number of Illinois condominium board standard practices illegal. Boucher v. 111 East Chestnut Condominium Association[1] held that a board, in levying fines against a belligerent unit owner who verbally berated and insulted management […]
MI Court rules that MCL 559.208 does not protect a Condominium Association’s lien priority after taking a deed in lieu of foreclosure
In Stonehenge Condominium Association v Bank of New York Mellon Trust Company, NA, unpublished opinion of the Court of Appeals, issued July 24, 2018 (Docket No. 339106), the Michigan Court of Appeals held that a condominium association’s lien priority over a second mortgage was extinguished when the association received a deed to the condominium unit […]
Judge: Illinois condo law not meant to control ‘reasonable’ fees for electronic condo sale documents
A Chicago federal judge has tossed a putative class action lawsuit by a trio of onetime suburban condominium owners, who alleged they paid excessive fees for state-required documents when they sold their units, saying Illinois condo laws are not meant to control fees. The July 16 ruling was laid down by U.S. District Judge Manish […]
Nevada Courts Provide Additional Guidance on HOA Super Priority Lien Law for Lenders
As we’ve discussed on this blog before, Nevada’s courts remain a battleground for lenders seeking to establish that their security interests were not eliminated by homeowners’ association foreclosure sales under NRS 116. In recent weeks, the Ninth Circuit and Supreme Court of Nevada have issued new opinions providing more guidance to ultimately resolve those issues. […]
Court denies condos’ request to throw out PWS Environmental lawsuit (FL)
A Florida federal court denied a request by a group of condominium associations to dismiss an $800,000 lawsuit filed by a pressure washing company. Judge John E. Steele of the U.S. District Court for the Middle District of Florida ruled the condo associations did not produce enough evidence that PWS Environmental Inc. did not state […]
New Jersey’s Highest Court Scrutinizes Statutes of Limitation and the Discovery Rule in Construction Defect Cases
The typical construction defect case presents an up-front analytical challenge: the defense attorney is presented with boxes of project materials, perhaps an extensive case history and prior discovery, and likely an unhappy (but these days, resigned) client. So you start with the basics: a review of the complaint to assess the allegations; a review of […]
9th Cir. Holds Judicial Foreclosures Are Debt Collection Under FDCPA
A panel of the U.S. Court of Appeals for the Ninth Circuit recently held that a law firm’s effort to collect homeowner association (“HOA”) assessments through judicial foreclosure constitutes debt collection under the federal Fair Debt Collection Practices Act. In so ruling, for purposes of whether activity constitutes debt collection under the FDCPA, the Court […]
A Fight Over Flooring at a Broward Tower Clarifies Condo Association Rights (FL)
When the board of directors at Fort Lauderdale’s Regency Tower Association changed the flooring in of the condominium lobby from Carrara marble to ceramic tile in 2016, they set in motion a court battle with unit owner Ronald Lenzi. He objected, claiming unit owners were required to vote to approve the renovation work. It all […]
Important New Case on the Rights of Home Owners in HOAs
In a case brought by two home owners against their home owners association (“HOA”), against the HOA directors, and against a bank that stacked the HOA board with directors which were its employees, the Court of Appeals of Tennessee recently issued an important and insightful opinion in the case of Urbanavage et. al. v. Capital […]
Ruling against Indianapolis’ condo nuisance claim upheld (IN)
Summary judgment entered in favor of an east side Indianapolis condominium complex was affirmed when the Indiana Court of Appeals ruled that damages sought against the complex by the city for being a “nuisance” were inappropriate. Towne & Terrace is a residential complex near the intersection of East 42nd Street and Post Road in Indianapolis. […]
Appeals court sends homeowners association’s lawsuit over flood damage back to Harris County (TX)
A homeowners association’s lawsuit to recover the cost of flood damage to a reserve tract in a Harris County community is on its way back to a local district court after a Texas appeals court ruled, in part, that the lower court had been wrong to find for defendants in the case. Read the article………………
Is a First Mortgagee’s “Safe Harbor” Obligations Expanded? (FL)
Generally speaking, as a result of sections 720.3085 and 718.116, Florida Statutes, lenders who acquire property as a result of their own foreclosure of their first mortgage against their borrower only owe the association the lesser of 12 months back assessments or 1% of the initial mortgage, whichever is less. This is referred to as […]
Appeals panel: ‘Obnoxious’ condo owner has right to free speech, to view evidence when accused by association (IL)
While condo associations are not extensions of the government, they still must respect the First Amendment rights of condo owners, and must disclose evidence to those accused of violating association rules before assessing fines, a divided state appeals panel has ruled. However, a dissenting justice warned the ruling had the potential to bog the courts […]
Case Law Update: Golf Course Restrictive Covenant Upheld (FL)
Owners of unprofitable golf courses are increasingly wanting to redevelop their golf courses as residential property, especially in areas where land for residential development is at a premium. Some golf courses are subject to recorded covenants that require the property to be used for recreational purposes and therefore prohibit such redevelopment. In Victorville West Limited […]
HOAs & Condos: Follow Your Bylaws & Proper Parliamentary Procedure (PART 2)
A blog I wrote in 2016 (HOA’s: Follow Your Bylaws & Proper Parliamentary Procedure) examined two opinions from the NC Court of Appeals about HOA/condo board decisions. The short takeaway from those cases for associations? FOLLOW THE RULES. A new case from the Court of Appeals issued today (June 19, 2018) again examines the requirements […]
Appellate court sides with condo owner fined for complaining about building management (IL)
His behavior admittedly aggressive, some would say obnoxious and rude, but a state appellate court says a condominium association in Chicago was wrong to fine a unit owner for expressing his opinions about how the association is managed. Michael Boucher sued 111 East Chestnut Association and seven of its board members after they imposed a […]
Legislative Fix Needed in Condo Association Property Tax Assessment Appeals Ruling (FL)
Condominium associations regularly represent all of their unit owners as a consolidated class of litigants in cases challenging their local county ad valorem property tax appraisal assessments. However, a vital segment of the representation that associations provide their owners in such actions may soon be coming to an end as a result of a recent […]
Policyholder accuses State Farm and Firstline insurance companies of not covering losses to Brookhaven property (PA)
A policyholder whose apartment suffered physical loss and damages claims that a pair of major insurance companies have failed and refused to provide her the coverage that was due her in this situation, under those same policies. Miesja Cubito of Brookhaven filed suit in the Philadelphia County Court of Common Pleas on May 22 versus […]
Condo association allowed to challenge PTSD claims in elevator flap with wife of bankruptcy lawyer Geraci: Appeals judges (IL)
A federal appeals court said a lower court judge was correct in ruling against the wife of prominent Chicago area bankruptcy lawyer Peter Francis Geraci in her dispute with her condominium building over elevator access, saying a judge and jury didn’t break any rules in allowing the condo association to contest her claims to being […]
Liam Daly and Brandee Daly v. Gulick Group, Inc., CL-2018-214 Demurrer; Letter Opinion (VA)
A real estate purchaser may unilaterally rescind a purchase contract within three days of receiving a property owners’ association disclosure packet under Virginia Code § 55-509.4(A), (C). The relevant issue that the instant Demurrer raises is whether a real estate purchaser may unilaterally rescind a purchase contract more than three days after receiving an incomplete […]