In the recent case of Haddad v. Alexander, Zelmanski, Danner & Fioritto, the Sixth Circuit held that assessments imposed by a condominium association on individual unit owners qualified as “debts” under the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, a debt is “any obligation or alleged obligation of a consumer to pay money […]
Significant Maryland Condominium Arbitration Award Confirmed By Balitmore City Circuit Court
The Circuit Court’s confirmation of the $1,252,487 arbitration award resulted in what is believed to be Maryland’s largest judgment against a condominium council of unit owners for its failure to maintain, repair, and replace the common elements of a condominium building (in this case, the roof system, exterior façade, and HVAC ductwork of a 27-story […]
Prevailing Party: Trial Court Did Not Err In Finding Neither Party Prevailed In HOA Driveway Characterization/Slander Of Title Dispute
In Mankowski v La Cumbre Owners Assn., Inc., Case No. B236025 (2d Dist., Div. 6 Nov. 13, 2012) (unpublished), plaintiff townhouse owner was apparently really mad that the trial court found no one prevailed in her slander of title/declaratory relief action over the characterization of a driveway after her sister contributed to her incurring attorney’s […]
Florida Court Reviews Entitlement To Attorneys’ Fees
No one wants to be involved in a lawsuit. Guaranteed to not only be a real drain on time and elevate stress levels all around, litigation can rack up enormous legal fees for both the plaintiff and the defendant. A well-known strategy for companies is to include wording in contracts that allows a prevailing party […]
Assessment Collections Fees in “No-Cost” Collections Contracts
The United States Bankruptcy Court in California recently ruled in a case that may impact the terms under which Homeowners Associations (“HOAs”) contract with collections companies to pursue delinquent assessments. Read More……
Arbitration of Construction Defect Claims Against Developer and General Contractor
Denver District Court orders arbitration of construction defect claims in Glass House Residential Association v. Alta Riverfront LLC et al, no. 2012CV1531. The Glass House ruling provides direction for developers and general contractors to choose a preferred method of dispute resolution for construction defect claims. The Denver District Courts recently upheld mandatory arbitration in a […]
Can condominium associations ban religious symbols?
The Supreme Court of New Jersey addressed this situation in A Committee For A Better Twin Rivers, v. Twin Rivers Homeowners’ Association. In the Supreme Court’s decision, authored by Justice John E. Wallace, Jr., the Court determined that even in light of New Jersey’s broad interpretation of its constitutional free speech provisions, the “nature, purposes […]
Even if they disagree with the board, condo owners must pay special assessments
The New Jersey Appellate Division has restated a basic rule of condominium and homeowner association law: i.e. that disagreement with the Board will not justify the non-payment of your maintenance fees or special assessments Read More……
Property Owner Wins Lengthy Turf War; Judge Titles Order: “Anatomy of An HOA Dispute Run Amok”
A CC&R dispute that started 11 years ago over the condition of a Tampa Florida homeowner’s lawn, a lawsuit that involved dozens of court hearings, a weeklong jury trial, two appeals and a second trial, at a cost of hundreds of thousands of dollars is finally over, and the owner prevailed. While this lawsuit occurred […]
Know your state law to better assess risk
The recent Illinois case 1324 W. Pratt Condominium Association v. Platt Construction Group, Inc. reminds contractors to be mindful of state policy considerations which may affect their risk assessments when constructing condominiums or high profile projects. Read More……
Condominium Developers Can Require Arbitration for Construction Defect Lawsuits Through Project CC&Rs
The California Supreme Court recently held that the developer of a condominium project may unilaterally impose arbitration on an owners association by recording a declaration of covenants, conditions, and restrictions that imposes mandatory arbitration for construction defects. Read More……
They Fought the Lawn and the Lawn Won
In an epic battle between a homeowners association, owners, and a lawn, the lawn appears to be the only winner. Eleven years of ago, Ed and Billye Simmon and their Florida homeowners association began a court battle over a $2,200 bill related to a bad lawn. Probably the association’s cost of re-sodding. According to the […]
Recovering Attorneys’ Fees in HOA Election Disputes
The California Court of Appeal’s recent ruling in a case underscores how crucial it is for HOAs to strictly comply with the Civil Code’s election procedures and requirements. The court in That v. Alders Maintenance Association (2012) applied Civil Code § 1363.09 to hold that a HOA’s attorneys’ fees and costs are generally not recoverable […]
Rogers Towers: Defeating Homeowner’s Association Claims for Unpaid Assessments in Foreclosure Cases
When is a first mortgagee not liable for any unpaid HOA assessments that came due prior to taking title? Judging solely by the text of § 720.3085(2)(b), it would seem that a first mortgagee that takes title to property through foreclosure or deed in lieu would instantly become liable to the HOA for unpaid assessments […]
Some Possible Implications Arising From California Supreme Court’s Pinnacle Decision
On August 16, 2012, our state supreme court issued its opinion in Pinnacle Museum Tower Assn. v. Pinnacle Market Development, Case No. S186149 (Cal. Sup. Ct. Aug.16, 2012). The high court found that CC&Rs mandating arbitration between developers and homeowner associations (HOAs) were enforceable under the Davis-Stirling Act and were not unconscionable in nature. There […]
Privity, Shmivity, Says The California Supreme Court – A Provision To Arbitrate Construction Disputes In Recorded CC&Rs Will Be Honored If Not Unreasonable
Arbitration is a matter of consent, right? Because there can be no meaningful consent between a developer that drafts covenants, conditions, and restrictions containing a provision requiring arbitration of construction disputes, and a homeowner’s association (HOA) that doesn’t yet exist, how can the HOA in such circumstances be bound by the arbitration clause? That was […]
Homeowner Associations/POOF!: Strange Procedural Posture Requires Reversal Of $46,300 Fee/Costs Order When Judgment of Dismissal Reversed in Fourth Appeal of Dispute Involving Homeowner and HOA
Well, the fourth appeal in a longstanding mold/water intrusion/infestation dispute between a homeowner and HOA involved homeowners’ challenge to a judgment of dismissal in favor of HOA as well as the lower court’s order awarding HOA attorney’s fees of $37,336 and costs of $8,972. Read More……
Court sides with contractor over subrogation for damages from burst pipe
A federal district judge in Miami has sided with a heating, ventilation and air conditioning contractor against an insurer seeking subrogation for damages paid related to a burst pipe during Hurricane Katrina at a luxury condominium building in Miami. Read More……
Arbitration Decision Coming Soon
On Tuesday, May 29, 2012, the California Supreme Court heard arguments from both sides in Pinnacle Museum Tower Association v. Pinnacle Market Development, in which the Court will decide whether a homeowners association is bound by an arbitration provision contained in its declaration of restrictions (“CC&Rs”). Read More……
Condominium Unit Owners Not Strictly Liable for Damage Originating from Their Unit in Ohio
In condominium associations, where individual owners share a common interest in property and are often within close proximity to each other, it is not uncommon for disputes to arise between individual owners. Resolution of these disputes often turns on how the property relationships are defined by condominium association documents and bylaws, as well as state […]
Fourth Court Upholds Allegedly Obsolete Restrictions Mandating Residential Use Along Blanco Road
On July 13, 2012, the Fourth Court of Appeals of Texas (San Antonio) issued its opinion in a case in which it was asked to determine whether antiquated residential-use limitations applied to a subdivision abutting now heavily-developed and largely-commercial Blanco Road in San Antonio. Read More……
Homeowners Association Found to Have Equitable Easement Despite Lack of Recorded Document
Sumner Hill is a homeowners association in a gated community in Madera County. The Sumner Hill residents historically enjoyed access to a private road that leads to the nearby San Joaquin River. That access was jeopardized when a portion of the Sumner Hill property was sold to an outside developer. The developer first sought to […]
Court ruling could increase liability of individual condo, co-op board members
New Yorkers may become even more reluctant to sit on the board of their condominium or co-op building. A decision handed down by the state appellate court this month could increase the likelihood that individual board members will be held liable for their building’s decisions, the Wall Street Journal reported. Read More……
Ticky Tacky Little Governments: A More Faithful Approach to Community Associations Under State Action Doctrine
Community associations are an innovative solution to a myriad of challenges that arise in the ownership of residential property. They solve collective action problems and fulfill desires in the common pursuit of neighborhood harmony. But when community associations go too far to conform and perfect the neighborhoods they govern, they often intrude on the fundamental […]
On further thought . . . Reversing earlier board decisions
A recent decision of the Ontario Small Claims Court tackles the interesting issue of whether and how condominium boards can reverse earlier decisions in maintenance and repair scenarios. Read More……
Homeowner Associations/POOF!: Reversal Of HOA Award Means Homeowner Survives To See What Happens On Remand
Homeowner Association (HOA)/homeowner disputes seem to be very acrimonious. However, depending on who prevails, there may be fee exposure under Civil Code section 1354 (CC&R enforcement) or Civil Code section 1717 (contractual fee enforcement). But, each side may have to wait until the end of the day–including numerous appeals–to decide who prevails, so that may […]
Foreclosing Lenders Avoid Disaster and Given More Options To Foreclose In Eaton v. Fannie Mae Case
The Massachusetts real estate community has been waiting 8 long months for a decision from the Massachusetts Supreme Judicial Court (SJC) in the much anticipated Eaton v. Federal National Mortgage Association (link) case. The decision came down June 22, and now that the dust has settled, I don’t think there is any question that lenders […]
Lying About Assistance Animal Backfires on Owner
In this day and age it’s a rare situation where an association prevails in a legal action involving assistance animals. But for the Sun Harbor Homeowners Association, this is a current reality. Read More……
MAZDABROOK COMMONS HOMEOWNERS’ ASSOCIATION v. KHAN
MAZDABROOK COMMONS HOMEOWNERS’ ASSN v. KHAN MAZDABROOK COMMONS HOMEOWNERS’ ASSOCIATION, Plaintiff-Appellant, v. WASIM KHAN, Defendant-Respondent. No. (A-65-10), September Term 2010 (067094).Supreme Court of New Jersey.Argued October 24, 2011.Decided June 13, 2012. CHIEF JUSTICE RABNER delivered the opinion of the Court. The question in this appeal is whether a homeowners’ association can prohibit residents from posting political signs […]
Recent Case Holds That Condominium Association Could Owe A Duty of Care to Unit Owners to Maintain Pipes In the Interior Boundary Walls of Units
In a recent case, the Florida Fourth District Court of Appeal analyzed a condominium association’s declaration documents to determine whether the association owed a duty to maintain the pipes located within interior walls of the condominium. While the subject of the case is a negligence action by the unit owner against the association, the case […]