Members of co-op and condo boards never tire of complaining about unfunded mandates imposed by the city government. One of the most unloved is Local Law 77, which was passed in response to a deadly outbreak of Legionnaires’ disease in the Bronx in 2015. It imposed some of the nation’s toughest standards on the maintenance […]
Judge makes recommendations about motions in Hunters Run condo association case (FL)
A judge in the U.S. District Court for the Southern District of Florida recently recommended granting parts of motions filed in litigation between a real estate agency and two property owner associations over condominium properties in the Palm Beach County community of Hunters Run. In his 43-page report and recommendation issued Dec. 22, U.S. District […]
Judge rejects motions to dismiss Unicorp’s move to end Colony condo association (FL)
A Circuit Court judge on Thursday rejected motions from several Colony Beach & Tennis Resort unit owners to dismiss a legal proceeding by Unicorp Colony Units LLC to dissolve the former resort’s condominium association. Read the article……………….
Board Members, Property Managers: Be Aware of New Community Association Guidelines (FL)
Board members and property managers of condominium communities need to be aware that the state of Florida’s Department of Business and Professional Regulation issued revisions to rules pertaining to violations and penalties, 61B-21, Condominium Resolution Guidelines for Unit Owner Controlled Associations, which went into effect Dec. 5, 2018. Read the article…………………….
Coop and Condo Right to Seek Legal Fee Reimbursement may have new life (NY)
As we previously reported, the New York Appellate Court that oversees the Manhattan and the Bronx Supreme Courts issued a unanimous decision at the beginning of November, 2018, which may significantly impact the right of cooperatives, and likely condominiums, that try to seek the reimbursement of legal fees from defaulting shareholders or owners. In Krodel […]
Indemnification Provisions and the “Vouching In” Rule – – The Most Dangerous Contractual Provision You Probably Don’t Know About
If you have been in the business world for any reasonably length of time, or if you have leased property or entered into a contract for construction or remodeling, you have probably been a party to a contract that contains an indemnification provision. Read the article…………………
Impact of the Government Shutdown on Community Associations
The partial government shutdown impacts several federal agencies and programs important to community associations. Homeowners and buyers, board members, community managers, attorneys, and other business partners may notice delays in condominium loan certification, flood insurance policy changes, drone licensing approvals, and more. Read the article………………….
Florida Federal Court Finds Insurer Must Defend Contractor in Defective Condo Construction Suit
The United States District Court for the Middle District of Florida recently granted summary judgment in favor of developer, KB Homes, ruling that Southern Owners Insurance Co. must defend KB Homes under various Commercial General Liability policies. Read the article……………..
Amendment to the Marketable Record Title Act puts Michigan restrictive covenants at risk
On December 31, 2018, SB 671 was enacted into law, via 2018 PA 572, in order to amend the Michigan Marketable Record Title Act. SB 671 was a lame duck bill that may have drastic consequences for Michigan condominiums and homeowners’ associations in the future. Based on the amendment to the Michigan Marketable Record Title […]
Federal Court Enjoins NYC Law Aimed at Airbnb, Homeaway Short Term Renting
In a 52-page decision, District Judge Paul A. Engelmayer of the Southern District of New York put a kibosh on New York City’s short-term rental regulation that was set to go into effect on February 2, 2019. NYC has been trying to figure out an efficient way to enforce its short-term rental restrictions and this […]
Subcontactors can’t be sued directly by homeowners for building defects: IL Supreme Court
The Illinois Supreme Court has reversed Cook County and appellate court rulings in a lawsuit over allegedly defective condominium buildings in Evanston, saying condo unit owners cannot sue subcontractors who built the condos, because there were no contracts between the two groups. Read the article…………………
New HOA law in effect in South Carolina
A new Homeowners Association law is now in effect throughout South Carolina. The law, first introduced in March 2017 and passed in May 2018, requires HOAs to be more transparent and gives neighbors a new way to report problems with their HOA. Some of the new requirements for HOA’s include documenting meetings and putting any […]
Homeowners Associations Ruled Jointly Obligated to Maintain Pond (WA)
After examining the relevant plats and agreements, the Washington Court of Appeals ruled last month that two homeowners associations are jointly obligated to maintain a stormwater drainage pond. Read the article………………….
Court Decision Touches on Condominium Airspace Property Rights (FL)
In property law, owning land includes owning the earth under the surface and air above the surface. Florida’s First District Court of Appeals recently addressed airspace condominium parcel rights in Sterling Breeze Owners’ Ass’n, Inc. v. New Sterling Resorts, LLC, Case No. 1D17-1553 (September 5, 2018). Read the article………………….
Coop and Condo Right to Seek Legal Fee Reimbursement at Risk (NY)
The New York Appellate Court that oversees the Manhattan and the Bronx Supreme Courts issued a unanimous decision at the beginning of November, 2018, which will significantly impact the right of cooperatives, and likely condominiums, that try to seek the reimbursement of legal fees from defaulting shareholders or owners. In Krodel v. Amalgamated Dwellings, the […]
Appeals court upholds lower court decision in dispute over Heron’s Landing condos (FL)
A Florida appeals court has affirmed the decision of a lower court in a dispute over the condition of condominium units in Jacksonville. “Appellant contends that the trial court erroneously admitted extrapolation evidence and erred in failing to grant its motion for a directed verdict,” the First District Court of Appeals in the State of […]
Homebuyers’ Implied Warranty of Habitability Suit Against Subcontractors Is Frozen out by Illinois Supreme Court
Overruling 35 years of precedent, the Illinois Supreme Court has held that buyers of newly constructed homes cannot sue subcontractors for breach of the implied warranty of habitability. Sienna Court Condominium Association v. Champion Aluminum Corporation, 2018 IL 122022 (December 28, 2018). Read the article…………………..
HUD Resolves Disability Discrimination Case Complaint Against Condominium Association in New Jersey
Last week, the U.S. Department of Housing & Urban Development (HUD) issued a press release to announce it resolved a disability discrimination case in November 2018 filed against a New Jersey age 55 and over condominium association involving claims that the condo association violated the Fair Housing Act (FHA) by refusing to sell a couple […]
Judge makes recommendations about motions in Hunters Run condo association case (FL)
A judge in the U.S. District Court for the Southern District of Florida recently recommended granting parts of motions filed in litigation between a real estate agency and two property owner associations over condominium properties in the Palm Beach County community of Hunters Run. Read the article…………………..
NYC Issues Violations to Condos and Coops because of Illegal Short Term Rentals
Here are 3 violations issued by NYC to the Farragut Gardens Condominium at 538 East 86th Street in Brooklyn, because of short term rental violations. In that condo, just 1 unit was short term renting. The NYC Office of Special Enforcement is issuing violations to condominiums and cooperatives because of short term rentals. Indeed, NYC […]
Major changes coming to SC HOA laws in January!
There have been multiple attempts by the South Carolina Legislature over the years to enact laws concerning planned communities and homeowners’ associations (“HOAs”). Unlike North Carolina, until recently South Carolina had no laws for planned communities other than one pertaining to horizontal properties (condominiums). This year, legislation dealing with planned communities was finally adopted by […]
The Maryland HOA Implied Common Area Warranty
In Maryland there is an implied warranty on the construction of the common areas within a homeowners association (‘HOA”) community. The warranty is codified at Section 11B-110 of the Maryland Homeowners Association Act (“MD HOA Act”), and provides that “there shall be an implied warranty to the homeowners association” that the improvements to the common […]
The Rhode Island Condominium Act And Unit Owner Unanimity: Intra-Condominium Litigation Waiting To Happen
Both Condominium board members and unit owners should be mindful of limitations placed on them via the Rhode Island Condominium Act through requirements that unanimous unit owner approval be obtained before a condominium’s declaration is amended in specific circumstances. A condominium’s “declaration” is the document recorded in a municipality’s land evidence records in order to […]
Does The Business Judgment Rule Extend To A Board Interpretations? (CA)
The California Supreme Court has adopted a rule of deference to most decisions made by community association boards: “Where a duly constituted community association board, upon reasonable investigation, in good faith and with regard for the best interests of the community association and its members, exercises discretion within the scope of its authority under relevant statutes, […]
Condo association accused of numerous misdeeds; attorney says behavior is the norm (FL)
A condominium improvement association is being sued by numerous residents for breach of contract and breach of fiduciary duties. According to NWF Daily News, the Holiday Isle Improvement Association in Destin was sued Dec. 4 after allegedly committing breach of contract, among other allegations. The lawsuit states that since 2016 the group has not had […]
1st District affirms dismissal of suit and sanctions against man over towing of car (TX)
The Court of Appeals for the 1st District of Texas has affirmed a Harris County Civil Court ruling that dismissed an appeal over the towing of a car. According to the opinion issued Dec. 4, the Appeals Court disagreed with Ali Yazdchi that the Harris County Civil Court at Law No. 2 erred when it […]
Trial Judge Did Not Error In Reducing Homeowner Fees To Prevailing Defendant By Over $100,000 (CA)
In Eith v. Ketelhut, Case No. B272028 (2d Dist., Div. 6 Dec. 17, 2018) (partially published; fees discussion unpublished), many homeowners got involved in a dispute which hinged on whether a HOA Board of Directors properly made a decision on the proper characterization of a defendant homeowners’ operation of a vineyard for purposes of violating […]
Independent Contractors vs. Employees (CA)
In the recent case of Dynamex Operations West, Inc. v. Superior Court, the California Supreme Court set forth a new test that employers should utilize to determine whether their workers are appropriately classified as independent contractors or employees. (Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal. 5th 903.) The new test will likely […]
Attorney-Client Privilege Is Valuable and Frighteningly Easy to Lose
Condominium board members are often encouraged to be open, honest, and transparent in their communications with the condominium community. However, because of their leadership position, board members often possess confidential information, the disclosure of which may have significant legal and financial implications for the community associations they represent. Confidential information protected by attorney-client privilege is […]
The Rhode Island Condominium Act and Unit Owner Unanimity: Intra-Condominium Litigation Waiting To Happen
Both Condominium board members and unit owners should be mindful of limitations placed on them via the Rhode Island Condominium Act through requirements that unanimous unit owner approval be obtained before a condominium’s declaration is amended in specific circumstances. A condominium’s “declaration” is the document recorded in a municipality’s land evidence records in order to […]
Do You Take Minutes in Executive Sessions? (IL)
A topic of great discussion is whether minutes should be kept for executive “closed” sessions and, if so, how detailed they should be. Previously, there was little guidance for association boards and many were cautioned to not take minutes for executive sessions. But, all that changed on June 14, 2018 when the Illinois Appellate Court […]
Update on New South Carolina HOA Legislation – Don’t Miss the January 10 Deadline!
While this is generally a North Carolina HOA law blog, we represent many South Carolina HOAs as well, and as most of them are aware by now, the new South Carolina Homeowners Association Act was enacted on May 17th, 2018 and was the first major legislation in South Carolina to regulate homeowners associations. The major […]
How Will Co-ops and Condos Pay for Greener Buildings? (NY)
At a packed hearing last week, the New York City Council opened debate on a controversial new bill called Intro 1253 that has major implications for most co-op and condo boards in the city. The bill, sponsored by councilman Costa Constantinides, a Queens Democrat, proposes new carbon emissions caps and energy performance requirements for large […]
My Master Association is a Condominium Association… Maybe? (FL)
Even though you own a condominium, is it possible one of the associations governing your condominium unit thought to be a condominium association for decades is actually a homeowners association? Yes, it is. Many owners in the State of Florida own condominium units under the jurisdiction of two community associations. The first, a smaller condominium […]
Pennsylvania Amends Condominium Law to Help Associations
The Pennsylvania General Assembly recently enacted bills amending the common interest ownership laws, the Uniform Condominium Act (UCA), the Uniform Planned Community Act, and the Uniform Real Estate Cooperative Act. The amendments require community documents to address alternative dispute resolution (ADR), strengthen the position of associations against developers, and allow associations to impose stronger penalties […]
Aptos Homeowners Assoc. sue County of Santa Cruz over beach access (CA)
It is the latest dispute over public beach access in coastal Santa Cruz Watch the news report……………………
Limited Vacancy: Florida Appeals Court Rules in Favor of the City of Miami’s Airbnb Rental Ban
Florida’s Third District Court of Appeal handed down a win for local governments on Wednesday when the Court reversed a previous Circuit Court injunction that barred the City of Miami from enforcing a ban on short-term rentals in residential areas of the City. Read the article………………….
Condominium Resale Disclosure Requirements – Be Sure You Have the Most Recent Version of Section 11-135 (MD)
As I have previously written, the information contained in condominium resale disclosure certificates must be carefully reviewed for accuracy, so as to avoid exposing the community to liability for misleading information that does not present a clear picture of the financial obligations that may await a prospective purchaser. Read the article……………………
Suit Against Association for Emotional Support Animal Denial Sends Message to Fla. Condos, HOAs
Emotional support animals have been in the news quite a bit during the last couple of years. There have been reports of airline passengers boarding with a peacock, hamster, pig, a duck wearing a diaper and a squirrel. As a result, companies have started to change their policies, and the public’s attitudes and perceptions toward […]
Outspoken Florida Foreclosure Defense Lawyer Bruce Jacobs Sanctioned By Florida 3rd DCA
The Florida 3rd District Court of Appeals has issued an order imposing sanctions against Florida Foreclosure Defense attorney Bruce Jacobs. Judges became irate after Jacobs filed a motion for rehearing and rehearing en banc after ruling against his client. Jacobs represented Aquasol Condominium Association in HSBC v. Aquasol. Read the article………………
Legislative Update Continued: Recalls and Financial Reporting (FL)
In 2017, extensive legislative changes were made to laws governing various condominium governance items, including board member recall procedures and association financial reporting laws. This year, several clarifications have been made to those (in some cases dramatic) changes. Read the article……………..
Legal marijuana: How will it impact Michigan condominium associations?
Michigan became the 10th state to legalize the recreational use of marijuana when voters approved Proposal 1 and enacted the Michigan Regulation and Taxation of Marihuana Act (the “Act”) on November 6, 2018. The highlights of the Act are as follows: Read the article………………
Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured (CA)
In Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf. In Engel, […]
Court Decision Extends Time to File Construction Defect Claims Following Proper Pre-Suit Notice (FL)
A new decision out of Florida’s Fourth District Court of Appeal addresses whether providing a mandatory pre-suit notice of construction defect claims satisfies the requirements of Florida’s 10-year Statute of Repose in §95.11(3)(c), Fla. Stat. (2014), even if an actual lawsuit is not filed within that period. In a win for Florida homeowners, the Court […]
President’s Direction did not Survive Motion to Show Authority
You are hired by an organization to investigate claims against certain parties, and the organization’s president later directs you to file a lawsuit on those claims. Do you have authority to file suit? Maybe not, a recent case reveals. The Board of Directors of Candle Meadows Homeowners Association voted to retain a lawyer to investigate […]
Counsel Declarations Sufficed To Justify $425,000 Fee Award In HOA’s Favor (CA)
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 […]
HOA Homefront: Tighter protection of HOA funds in 2019 (CA)
The most important new legislation changing how HOAs operate is Assembly Bill 2912. AB 2912 began with its purpose “to take important steps to protect [HOA members] from fraudulent activity by those entrusted with the management of the association’s finances.” Sponsored by the Community Associations Institute and the California Association of Community Managers, the bill […]
Associations Should Repair Life Safety Defects Even During the Pendency of Litigation (FL)
With the construction boom in full swing, more and more construction defect lawsuits are being filed on behalf of condominium associations because of countless construction defects that occurred during original construction. These construction defects are particularly prevalent in Miami where the unique real estate development market, weather, and shortage of skilled trade workers make it […]