In the Circuit Court for Montgomery County, Dora C. Johns, appellee, brought an action against Park Sutton Condominium, Inc. and Barkan Management, LLC, appellants, for breach of contract, negligence, nuisance, trespass, fraud, and negligent representation. Appellants answered her Complaint and filed a Motion for Summary Judgment, which was granted as to the nuisance and trespass […]
Case Law Breakdown: Right to Assign Parking in the District of Columbia
Association boards (and owners) often ask what the law is in a certain situation. They want to know: “Is this legal?” For various reasons, sometimes the answer is, “it depends.” Often this is because their precise situation has never been addressed in a binding precedential opinion; if the question is one of first impression in […]
Appeals Court Decision Addresses the Permissibility of Electronic Voting when the Condominium Bylaws do not Expressly Authorize the Practice (MA)
On February 2, 2022, the Appeals Court issued a noteworthy decision providing that the use of electronic voting did not violate a condominium’s bylaws by permitting unit owners to cast votes remotely in advance of the annual meeting even though the bylaws did not expressly authorize the practice. Read the entire article……………………………….
Rebuilding a Michigan Condominium After a Fire
Having a fire in a condominium project is a terrifying thought. In addition to the risk of loss of life, there is a high probability that a condominium unit and the common elements will be damaged, or worse, destroyed. In the event of fire damage, the condominium documents should designate the condominium association’s and co-owners’ […]
After Reversal of Prior Judgment Finding No Easement, Defendant HOA Was Properly Awarded $731,682.08 In Section 1717 Fees And $111,540.01 In Costs (CA)
Ranch at the Falls LLC v. Indian Springs Homeowners Assn., Inc., Case No. B311278 (2d Dist., Div. 8 Feb. 10, 2022) (unpublished) demonstrates how a change of fortune through a reversed judgment and application of judicial estoppel can certainly alter the results in a case. Read the entire article……………………………….
Will The Association’s Denial Of An Architectural Request Withstand Challenge? Many Won’t—Find Out Why (FL)
For many homeowners associations, a top priority is ensuring that the homes in the community are maintained in conformity with the “community-wide standard.” But, what is this subjective standard? How is compliance measured? What is the process to be judged when a request to the association’s architectural review committee (ARC) is made? Read the entire […]
Nevada Supreme Court Holds Challenges to HOA Liens Subject to 4-Year SOL, Which May Not Be Triggered by HOA Sale
In response to certified questions from the U.S. Court of Appeals for the Ninth Circuit, the Nevada Supreme Court recently held that: (1) an action seeking to determine the validity of a homeowners association lien under NRS 40.010 is subject to NRS 11.220’s four-year statute of limitations; (2) the four-year statute of limitations does not […]
Insurer wins ruling in rescission of homeowners association’s policy
A federal appeals court Monday ruled in favor of an insurer that sought to rescind its policy for a homeowner’s association, holding the association had failed to disclose a situation likely to give rise to a claim in its coverage application. Read the entire article……………………………….
East Village Co-op Board Fails to Evict “Neighbor From Hell” (NY)
Ever since the Court of Appeals of New York issued its landmark Levandusky decision in 1990, co-op and condo boards have been protected by the sturdy armor of the business judgment rule. It states that so long as a board acts in good faith, within the scope of its authority and for the purposes of […]
Ninth Circuit Partially Reverses Grant of Summary Judgment in Favor of Debt Collector in FDCPA Case (CA)
In Almada v. Krieger, No. 21-55275 (9th Cir. Jan. 24, 2022), the Ninth Circuit partially reversed a decision by the U.S. District Court for the Southern District of California, granting summary judgment in favor of a debt collector in a Fair Debt Collections Practices Act (FDCPA) case. In doing so, it held that a collection […]
New Appellate Case: Almason v. Southgate on Fairview Condominium Association (NC)
In a decision issued today (February 1, 2022), the North Carolina Court of Appeals examined several issues that associations deal with regularly—budget ratification, owner attendance at board meetings, rules governing board meetings, and association records requests. Nothing in the decision is groundbreaking, but the findings of the court may provide comfort that your association practices […]
Superior Court Decision Confirms Attorney-Client Privilege Extends to Communications Including a Condominium Board’s Property Manager (MA)
On January 21, the Superior Court issued a noteworthy decision providing that the attorney-client privilege protects communications with property managers – as “necessary agents” of the board – in connection with litigation involving the condominium. Furthermore, the Court ruled that communications with the Board’s engineering expert – which included the property manager – were not […]
Condo board can negotiate sale of building without unit owner approval, says appeals panel (IL)
Owners of units in a condominium in River North did not need to give formal approval before their association negotiated a possible sale of the building, according to a new ruling from a state appeals court. Read the entire article……………………………….
More on the Installation of Security Cameras (FL)
The installation of a security camera on condominium common elements is considered a material alteration or substantial addition to the common elements. In Sterling Village Condo., Inc. v. Breitenbach, 251 S.2d 685, 687 (Fla. 4th 1971), the court defined “material alteration or addition” as follows: Read the entire article……………………………….
Justices: South Bend condo HOA can move forward with faulty construction lawsuit (IN)
A homeowners association made up of condominium owners in a South Bend condo complex can move forward with its claims of faulty construction work against two of the four defendants named in its original lawsuit after a reversal by the Indiana Supreme Court. Read the entire article……………………………….
Insurer Owes Duty to Defend and Indemnify Nuisance Litigation (CA)
A federal district court, applying California law, has held that an insurer owed a duty to defend and indemnify an insured in an underlying nuisance litigation under a not-for-profit D&O policy, as the policy’s pollution, property damage, breach of contract, and prior acts exclusions were not implicated. The Crosby Estate at Rancho Santa Fe Master […]
Appellate Decision Upholds a Developer’s Right to Object to an Amendment to the Declaration (FL)
Overview of First Equitable Realty III, Ltd. v. Grandview Palace Condo. Ass’n. A recent decision of the Third District Court of Appeal, First Equitable Realty III, Ltd. v. Grandview Palace Condo. Ass’n, 46 Fla. L. Weekly 2199 (Dist. 3d DCA 2021) determined certain rights a developer has to object to amendments to a condominium association’s […]
Chicago condo association can negotiate sale of condo building without prior approval of unit owners: IL appeals panel
Owners of units in a condominium on Chicago’s Magnificent Mile didn’t need to give formal approval before their association negotiated a possible sale of the building, according to a new ruling from a state appeals court. Read the entire article……………………………….
Norman v. Rancho Del Lago (CA)
An owner alleged violations of the Federal Fair Housing Act, claiming the association discriminated when it did not allow the owner to install a second driveway to accommodate the owner’s unstable gait. However, the owner’s medical expert opined that a walkway half the size of the driveway, which the association would have allowed, would have […]
Dickson v. Century Park E. Homeowner’s Ass’n (CA)
An owner sued an association alleging violation of the Rosenthal Act. The court determined that an association is not a debt collector under the Rosenthal Act because it does not collect “consumer debt,” as that term is defined by the Rosenthal Act; assessments are not “consumer credit transactions.” Read the entire article……………………………….
Illinois Condominium Law Alert: New Implied Cause of Action a Warning to Condominium Owners, Directors, and Property Managers
Every condominium owner, director and property manager will be impacted by a recent Appellate Court decision in the case of Channon v. Westward Management, Inc. It gave every condominium seller the right to sue the property manager, as agent of a condominium association or board of directors, based on allegations that the property manager charged […]
Homeowners Association May Be Liable to Adjoining Lot Owners for Failing to Maintain Seawall and Water Channel (MI)
In Residents of Fresh Air Park Sub v Pointe Rosa Homeowners Assoc, unpublished per curiam opinion of the Court of Appeals, issued September 22, 2021 (Docket No. 355011), the Michigan Court of Appeals dealt with a situation where adjoining property owners sued a homeowners association for failing to maintain a seawall and channel waterway. […]
Fourth Circuit Upholds Finding That Excess Insurer Did Not Act In Bad Faith Where Insured Would Not Be Liable To Pay
The underlying dispute centered around a construction-defect claim in South Carolina state court brought by a homeowners’ association against a construction company. The construction company asked its excess insurer to provide coverage for the lawsuit but the excess insurer concluded it had no duty to defend. Read the entire article……………………………….
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners (FL)
The co-developers of Z Ocean, a South Beach condo-hotel, will remain on the hook for an $8.2 million judgment after their appeal was denied. In an opinion issued last week, the Third District Court of Appeals upheld Miami-Dade Circuit Court Judge William Thomas’ 2020 ruling in favor of Louis Taic and his company Read […]
Fourth Circuit Upholds Finding That Excess Insurer Did Not Act In Bad Faith Where Insured Would Not Be Liable To Pay (SC)
The underlying dispute centered around a construction-defect claim in South Carolina state court brought by a homeowners’ association against a construction company. The construction company asked its excess insurer to provide coverage for the lawsuit but the excess insurer concluded it had no duty to defend. Read the entire article……………………………….
The Business Judgment Rule (CO)
The Colorado Court of Appeals recently issued a decision confirming that a board of directors that reasonably interprets a validly adopted rule or regulation of the association is protected from liability. The crux of the decision is this: Read the entire article……………………………….
Architect Not Liable For Flawed Plans Submitted to Self-Certification Program (IL)
A Chicago ordinance that allows developers to bypass the usual plan review by city building officials by submitting self-certification from an architect did not give homeowners a right to take legal action against that architect after design flaws were discovered, an Illinois appellate court ruled. Read the entire article……………………………….
Your Association Can Now Be Sued for Defamation in Any County Where an Internet-based Publication Occurs (PA)
Read the entire article……………………………….
Michigan Court Decides that Short-Term Rentals Do Not Constitute ‘Residential Use
As renting residential property via websites has grown in popularity, so too have complaints from neighbors living in deed restricted communities. While these short-term rental opportunities may benefit the individual lot owners, they can represent a burden to some communities. A recent decision from the Michigan Court of Appeals serves as another in a growing […]
May a homeowners’ association (HOA) restrict a property owner from renting their property for a short-term when they purchased it before the HOA adopted the restriction? (CA)
Facts: An owner purchases a parcel of property in a common interest development (CID) governed by a homeowners’ association (HOA). The owner rents out their property on a short-term basis less than 30 days to tenants, as authorized by the covenants, conditions and restrictions (CC&Rs). Later, the HOA amends the CC&Rs to restrict owners in […]
‘Hostile housing environment’ claim survives summary judgment in lawsuit against HOA (IN)
A federal court is allowing a lawsuit alleging an Indianapolis homeowners association and its property management company knew of race-based harassment in the Twin Creeks subdivision, and failed to take legal action to stop the problematic neighbor from using offensive language and making threats, to continue. Read the entire article……………………………….
Case Summary – Cherry Homes v Baker (MI)
As renting residential property via websites has grown in popularity, so too have complaints from neighbors living in deed restricted communities. While these short-term rental opportunities may benefit the individual lot owners, they can represent a burden to some communities. A recent decision from the Michigan Court of Appeals serves as another in a growing […]
Maryland Court of Special Appeals throws out developer’s $25 million lawsuit against Clipper Mill residents
Residents of Baltimore’s Clipper Mill community won’t have to pay a developer $25 million for testifying against its development plans at public hearings, according to a ruling issued Thursday by Maryland’s Court of Special Appeals. Read the entire article……………………………….
Appeals panel: IL condo law lets condo owners sue management companies over excessive document fees (IL)
A state appeals panel has ruled condominium owners can initiate class actions against agents of homeowner associations they believe charged excessive fees to owners seeking documents they are required by law to provide to buyers when they sell their condo units. Read the entire article……………………………….
Michigan Court Rules Condo Association Has Authority To Waive Assessment in a Settlement Agreement
In Deep Harbor Condo Ass’n v Marine Adventure, LLC, unpublished opinion of the Court of Appeals, issued December, 29, 2020 (Docket No. 349471), the Michigan Court of Appeals held that a dockominium association’s settlement agreement authorizing the temporary release of payment of assessments was enforceable under traditional contract principles. Read the entire article……………………………….
Recent Short-Term Rental Case (SD)
The Supreme Court of South Dakota recently ruled upon a short-term rental case involving a community association. In Wilson v. Maynard, No. 29307 (S.D. Jun. 16, 2021), the community association’s declaration only permitted “residential purposes”. After the Maynards began renting their property to large groups as a short-term rental, a neighbor (Wilson) file suit alleging […]
‘We won, but we lost’ | Air Force veteran still in fight with HOA over right to fly American flag (FL)
After spending tens of thousands of dollars and being forced to sell his home in the Sweetwater community, the court awarded Murphee a total of $1,223. Read the entire article……………………………….
Selective Enforcement of Restrictive Covenants
When the homeowners association in a housing development files a lawsuit seeking to enforce a restrictive covenant, it isn’t unusual for the defendants to feel they are being unfairly singled out for harsh treatment. They can often point to other situations where enforcement of the covenants has been lax. Read the entire article……………………………….
Condominium Association Denies Transfer of Ownership of Unit to Widow, Forces Sale to New Buyer (FL)
Yet another highly questionable decision by a Florida condominium association has made local TV news. The latest condo dispute to make the local evening news involves a New Smyrna Beach, Fla., owner who was denied the transfer of another unit at the same property from her late husband to her after his passing. According to […]
Club West suit ends, but next steps uncertain (AZ)
One of the four owners of the Club West Golf Course said he and his partners will seek talks with the Foothills Club West Association Board now that a judge has ended the impasse in a lawsuit filed against the HOA. Read the entire article……………………………….
Finally Settling a Generally Accepted Fact: A Georgia Appellate Court Case Clarifying Insurance Requirements Under Georgia Condominium Act
There are few events as calamitous as water damage to a home. Jesse Mainor, a condominium unit owner, experienced condominium unit water damage twice in short order. In his case, the source of the leak was another unit’s hot water heater which subsequently leaked into his ceiling, causing damages into the five figures. […]
Judge orders Justice to pay Glade property owners $6 million (WV)
Raleigh County Circuit Court Judge Robert Burnside on Wednesday ordered Gov. Jim Justice’s company to pay more than $6 million and legal fees to Glade Springs Village Property Owners Association, for an estimated total cost of more than $9 million. Read the entire article……………………………….
Finally Settling a Generally Accepted Fact: A Georgia Appellate Court Case Clarifying Insurance Requirements Under Georgia Condominium Act
There are few events as calamitous as water damage to a home. Jesse Mainor, a condominium unit owner, experienced condominium unit water damage twice in short order. In his case, the source of the leak was another unit’s hot water heater which subsequently leaked into his ceiling, causing damages into the five figures. Read the […]
Not My Lake, Not My Bill: A Georgia Appellate Court Case On Hoa Governing Documents Interpretation & Responsibilities
HOA governing documents usually account for and prescribe how maintenance and repair fees may be levied against the homeowners in the association for both the shared and individually owned property in the community. While this is commonplace and a normal part of membership, when the property in need of maintenance or repair is a large […]
Michigan Court of Appeals affirms that short-term rentals violate HOA residential use restrictions
In Cherry Home Association v. Keith Barker, et. al., unpublished opinion of the Court of Appeals, issued October 21, 2021 (Docket No. 354841), the Michigan Court of Appeals upheld the Leelanau County Circuit Court’s ruling that frequent short-term rentals violated the residential use restrictions contained in the deed restriction for the homeowners association. The Court […]
Conflicts Kill Business Judgment Rule Protections
Conflicts of interest can strip board members of the protections they otherwise might have under the business judgment rule. A case involving a California HOA recently drove that point home (Coley v. Eskaton). Read the entire article……………………………….
Shareholders Wrest Power From an Entrenched Harlem Co-op Board (NY)
One of the most common complaints in cooperatives is that the board takes control and never gives it up and that the board works for itself and not for the good of the shareholders. In the vast majority of cases, it’s not true. Typically, board members work very hard, and shareholders continue to elect the […]
Law Review: HOAs may not retroactively prevent short-term rentals (CA)
The California Legislature is committed to addressing the state’s housing crisis. For example, local municipalities (and HOAs) may not outright ban secondary units. Also per SB 9, single-family residential zoning has essentially been upgraded to multi-family zoning (with restrictions). Read the entire article……………………………….
Lowe, Brown appeal case to Va. high court
Two Greene County residents appealed to the Virginia Supreme Court this month an earlier 16th Judicial Circuit ruling that says they are personally liable regarding actions taken by a homeowner’s association in Greene, according to court records. Read the entire article……………………………….
Court says DC isn’t liable for severe structural issues at a Ward 8 town house project it helped fund
In January 2021, Bennett and Callahan joined a group of homeowners in suing the Department of Housing and Community Development (DHCD) — the city agency responsible for financing the project — as well as the developer and the River East at Grandview Condominium Association. The claims against the defendants included breach of contract, emotional distress, […]