KSN attorneys Kelly Elmore and David Jacuk were recently awarded favorable rulings in Stuart Manor Estates v. John Piper and Anna Piper and two other related matters in Morgan Superior Court 3 (Morgan County, Indiana). Read the article……………………………….
Trial Should Have Proceeded in Absence of Defendant in Civil Case—Appeals Court (CA)
Div. One of the Fourth District Court of Appeal has reversed a default judgment in favor of a homeowner’s association in the case of a defendant who failed to show up for a trial readiness conference, was ordered to show cause why her answer should not be stricken, and was absent from the hearing on […]
Family faces eviction for having too many children buys more time from judge (IN)
The attorney for the property management and the family’s attorney attended the virtual hearing but the Homeowners Association attorney did not. The judge wants the HOA’s attorney to be present at a new hearing in mid-February to explain why they allowed the lease in 2019 and 2020 to be re-signed when it was clear then […]
Florida Changes Registration Requirements for 55+ Communities
As anyone involved with Florida community associations will tell you, trying to keep up with the changes in rules and laws that impact the operation and management of condominium and homeowner associations can seem like a full-time job. Actually, that is our job, and the primary motivation for this article. We know how daunting it […]
Legalized Marijuana & Community Associations (AZ)
During the 2020 General Election, Arizona voters approved Proposition 207, which legalizes and governs the adult use, regulation and taxation of recreational marijuana. On November 30, 2020, the Arizona Secretary of State certified the voters’ approval and the Proposition became the Smart and Safe Arizona Act (the “Act”). Please also note that local (County, City […]
Long Beach Residents Stunned To Learn Of $130 Million Judgment Against City For Revoking Permit On Oceanfront Condos (CA)
Long Beach in Nassau County has been in fiscal trouble for years. Now the popular beachside city has learned it must pay more than $130 million for revoking a permit on oceanfront condos. Read the article………………………………..
Who is the Declarant? And Why Does it Matter? (NC)
When the developer declares land to restrictions described in a “Declaration” for a planned community or a condominium, that developer has the opportunity to reserve certain rights to itself as the “Declarant.” Although there is no requirement that the developer reserve such declarant rights, it is common practice to do so and very unusual for […]
New HOA Management Laws for 2021 (CA)
Ensuring HOA board members are educated and informed about state and local regulations is an important aspect of the value we provide to our clients. Understanding new and upcoming law changes helps homeowners association boards see the whole picture when making decisions and ensures they act within the association’s legal rights. Read the article……………………………………
Court of Appeals rejects county’s appeal on Western Shores case (KY)
The Kentucky Court of Appeals has rejected an appeal from the Calloway County Fiscal Court regarding a lawsuit filed by the Western Shores Property Owners Association, stating that former Judge-Executive Larry Elkins and current and past magistrates named in the suit are not immune from being sued as individuals over unfinished roads in the subdivision. […]
Lawyer Up (FL)
Some boards only engage legal counsel when a situation has become dire. Others are overly cautious and all the attorney at the drop of a hat, but unusually high legal bills often lead to membership scrutiny. Read the article……………………………….
Co-op Board Learns That Emails Can Bite Back (NY)
The brawl begins. Back in 2017, the actors Justin Theroux and his then-wife Jennifer Aniston got approval from their Greenwich Village co-op board to combine their apartment with the newly acquired apartment next door, then embark on a $1 million renovation of the expanded space. But the downstairs neighbors, Norman and Barbara Rescinow, complained about […]
Not a Leg to Stand On: Seventh Circuit Strengthens Standard for Finding Article III Standing
In December 2020, the Seventh Circuit issued no less than six rulings examining and raising the bar for Article III standing in Fair Debt Collection Practices Act (“FDCPA”) suits. The Court has taken a hard stance, refusing to find standing where plaintiff debtors cannot plausibly allege or prove any concrete harm as a result of […]
2020 Illinois Community Association Case Law Summaries
Several changes in 2020 Illinois case law have impacted the management of condominium, homeowner (HOA), and townhome community associations. Below is an amended summary our law firm has compiled with implications of these legal updates. Read the article…………………………………
The Business Judgment Rule: Inapplicable as to Decisions Made Under a Material Conflict of Interest (CA)
Under the Business Judgment Rule, volunteer directors are shielded from liability for decisions made when those decisions are (1) consistent with the director’s duties, (2) made in good faith, and (3) in a manner it believes to be in the best interests of the HOA and its members. (See Lamden v. La Jolla Shores Clubdominium […]
$492,592 Fee Award To HOA And Neighboring Homeowners, Combined, Affirmed On Appeal After Homeowners Lost View Protection Dispute (CA)
Under this category, we have indicated that fee awards can be costly for homeowners and homeowner associations/directors/property managers/neighboring homeowners caught in the middle of “view protection” disputes. The next case is yet another example of that. Read the article……………………………..
The Do’s and Don’ts of Lis Pendens in Florida
A lis pendens is a common tool used in Florida to put third parties on notice of a pending lawsuit against real estate. If filed properly, a lis pendens protects the plaintiff in a lawsuit from any intervening liens on the property filed after the lis pendens. However, property owners may not be able to […]
PALMETTO PLACE IMPRISONMENT LAWSUIT: Condo Owners Fear Property Value Decrease (FL)
Condominium owners in Palmetto Place fear that the lawsuit filed by Steve and Nancy Iscowitz — claiming their key fobs were deactivated when they tested positive for COVID-19 as the condo association sought an emergency order to hold them captive in their unit — will result in reduced property values in the swanky building. Read […]
New NC Executive Order Extends Ability to Hold Electronic Membership Meetings
As one of the last Executive Orders issued in 2020, Governor Cooper has extended the ability of North Carolina associations (including HOAs and condos) to hold virtual membership meetings. Read the article……………………………….
HB 5611: Michigan extends deadline to preserve covenants under the Marketable Record Title Act
The Michigan legislature amended the Marketable Record Title Act, MCL 565.101, et seq, on December 31, 2018, which had the potential to automatically eliminate certain types of restrictive covenants. Fortunately, the Michigan legislature recently amended the Marketable Record Title Act via HB 5611, and extended the time period for a property owner or homeowners association […]
Condominium Material Alteration Issues Can Be Complicated (FL)
Those living in a condominium often differ about how the condominium should look. Owners and their Board of Directors often disagree. Because the purchaser of a condominium often buys for its appearance, Florida’s legislature limits substantial changes to the appearance or what is known as material alterations or additions. Material alterations or additions have been […]
Auburn Woods Homeowners Association V. State Farm General Insurance Company (CA)
No Duty to Defend HOA and Property Manager Under Policy Liability and D&O Coverage Parts For Lawsuits Which Failed to Allege Damages and Did Not Include Property Manager as an Additional Insured Read the article………………………………….
Who Pays for Maintaining Shared Easements Between Multiple Condominium Associations? (MI)
Residential community developments in Michigan often use the rights of use afforded by recorded easements in order to permit the development of communities with multiple underlying individual residential projects. In some cases, a developer may create an overarching project and then record a series of subdivision plats or condominium master deeds over years to finalize […]
Sky Lodge Majority Owner Ordered to Pay $2.3M in Dispute With Fellow Condo Owners (UT)
A Third District Court judge has ruled against Ken Abdalla, the majority owner of the Sky Lodge, ordering him to pay a judgment of over $2.3 million and calling for a foreclosure sale of 30 fractional-share units owned by Abdalla and his affiliates. Abdalla has been embroiled in legal conflicts with his fellow condo owners […]
Cause & Effect: How New Georgia HOA Laws Impact the Holidays
As we look optimistically towards 2021, we remain in awe of the volunteers and professionals who kept community associations functioning through unprecedented times. Community associations and the professionals that they partner with faced more than 16 Executive Orders impacting HOA and condominium association operations and three new Georgia laws passed by the Georgia Legislature during […]
Nonjudicial Foreclosures – Weapon in Cooperative Board’s Arsenal (NY)
Because of the unique form of ownership in cooperative housing corporations, boards have a weapon in its arsenal to enforce shareholder obligations – the nonjudicial foreclosure sale. In cooperatives, owners are shareholders in the cooperative corporation and lessees under a property lease with the cooperative. Because of this ownership structure, proprietary leases contain provisions allowing […]
Federal Judge Removes Rachel Tannenholz From Seven Bridges Lawsuit (FL)
Seven Bridges homeowner Rachel Tannenholz is no longer a defendant in the Federal lawsuit brought by another homeowner against her and the Seven Bridges Homeowners Association. “It’s huge for us,” said an elated Debbie Klingsberg, attorney for Tannenholz. “We’re done. This is what we had been hoping for all along. Complete vindication that she didn’t […]
U.S. Virgin Islands: DLCA Announces New License for Short-Term Rentals
The Department of Licensing and Consumer Affairs is introducing a new business license for short-term rentals it promises will help crack down on people who rent out their residences against the bylaws of homeowners’ associations. Read the article……………………………….
POOF!: $109,760 Fees Award Went Away Based Upon Merits Reversal (CA)
One Ford Road Homeowners Assn. v. Johnson, Case No. G058269 (4th Dist., Div. 3 Dec. 17, 2020) (unpublished), is just a reminder about how expensive HOA/homeowners disputes can be. Read the article…………………………………
What Are the Mandatory Provisions in Condominium Bylaws? (MI)
Pursuant to Section 53 of the Michigan Condominium Act, MCL 559.153, the administration of a condominium project must be governed by condominium bylaws that must be recorded as part of the master deed. The Michigan Condominium Act, MCL 559.101, et seq., (the “Act”) and the Administrative Rules of the Department of Licensing and Regulatory Affairs […]
Federal Court Decision makes it hard for Coop Boards to stay out of Neighbor Disputes (NY)
Right before the pandemic started and we weren’t compelled to quarantine and stay closer to our neighbors for longer period of time, a Federal Court made a decision that makes it’s harder for cooperative boards to stay out of neighbor-neighbor disputes without risk of liability. Read the article……………………………………
Trial Court’s Denial Of Civil Code Section 5975(c) Fees To Prevailing HOA Was Error (CA)
The Davis-Stirling Act Fee-Shifting Provision, Section 5975(c), Mandates The Award Of Fees To The Prevailing Party With The Trial Court’s Only Discretion Being To Determine The Reasonable Amount Of Fees. Read the article…………………………………
Seven Bridges Delray HOA Board Slapped By Federal Judge (FL)
The three-way battle between two homeowners and the Seven Bridges Homeowners Association was just elevated from drama you’d expect to see on “Real Housewives” to a high stakes court case more worthy of COURT-TV. Read the article…………………………………
The Massachusetts Statute of Repose Comes Marching One Building at a Time
Have you ever wondered when Massachusetts’ 6-year statute of repose for defective design, planning and construction is triggered when dealing with the construction of a multi-building, multi-year condominium construction project? Read the article………………………………
How “Minimal” Can Common Elements Be in a Condominium? (FL)
This was the question raised in the recent Florida Third District Court of Appeal case of IconBrickell Condominium No. Three Association, Inc. v. New Media Consulting, LLC, Case No. 3D19-0521 (Fla. 3d DCA, October 7, 2020). Read the article…………………………….
9th Cir. Reverses Trial Court Ruling in Favor of Defendant on FDCPA Claim Related to Bankruptcy
The U.S. Court of Appeals for the Ninth Circuit recently reversed an award of summary judgment in favor of a defendant debt collector against claims that it violated the federal Fair Debt Collection Practices Act (FDCPA) by attempting to collect a debt that was discharged in bankruptcy and no longer owed. Read the article…………………………………
Court Holds Early termination of Manager causes Condo Association to Breach Property Management Contract (MI)
In Vista Property Group, LLC v Schulte, unpublished per curiam opinion of the Court of Appeals, issued September 17, 2020 (Docket No. 347471), the Michigan Court of Appeals vacated a no-cause judgment in favor of a condominium association and remanded the case back to the Kent County Circuit Court for entry of judgment in favor […]
What Constitutes a Product under the Economic Loss Rule (FL)
The Economic Loss Rule limits a defendant’s tort liability for defective products to injuries caused to persons or damage caused to property other than the defective product itself. The Economic Loss Rule has been used to exclude tort liability for damages to the constructed product. Read the article…………………………………
Lawsuits Against HOAs are Generally a Protected Activity (CA)
Under California law, a Strategic Lawsuit Against Public Participation (“SLAPP”) is a lawsuit brought against a defendant as a form of punishment for engaging in protected activities. When such lawsuits are filed, the defendant may bring an “anti-SLAPP” motion to strike the plaintiff’s suit. In order to prevail on such a motion, the moving party […]
Florida Courts Clarify Role of Appraisal in Coverage Claim Disputes
For first party property claims, lengthy and costly litigation is not always the only mechanism for resolving a dispute. Most homeowner’s policies include detailed terms and conditions for parties to undergo appraisal when there is a dispute over the amount of loss. Read the article………………………………….
When Neighbors Tangle, Co-op Boards Can’t Look Away (NY)
A recent court case serves as a warning that co-op boards cannot sit back when there’s a dispute between shareholders. In the case Donahue Francis v. Kings Park Manor Inc., Corrine Downing and Raymond Endres, the facts are disturbing yet hardly rare. Kings Park Manor is a rental apartment complex on Long Island where Donahue […]
State Law Nullifies Co-op Board’s Rule to Regulate Overnight Guests (NY)
When thousands of New Yorkers left the city for second homes to ride out the coronavirus pandemic, a Manhattan co-op board, concerned that shareholders were letting visitors stay in their vacant apartments, enacted a new rule: shareholders must now request authorization for any overnight guest. Did this co-op board overreach? Read the article…………………………………….
REASONABLE ACCOMMODATIONS UNDER THE FAIR HOUSING ACT
The Department of Justice (“DOJ”) and the Department of Housing and Urban Development (“HUD”) are jointly responsible for enforcing the federal Fair Housing Act1 (the “Act”), which prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, familial status, and disability.2 One type of disability discrimination prohibited by the Act is […]
Beatrice homeowners association challenge dismissed (NE)
A Beatrice homeowners association’s motion to drop its challenge against a convicted sex offender, has been granted by a judge. Wildwood Estates Homeowner’s Association was recently denied an injunction against Jeff Hawks and a company that owns a residential property in the southeast Beatrice Wildwood Estates area….where Hawks has been residing. Read the article…………………………
WA Court of Appeals: Tennis Court Removal Vote Complied With CC&Rs
Most of the owners in the Pickle Point neighborhood of Bellevue, Washington voted to remove a tennis court in the neighborhood’s common area. An owner in the neighborhood then filed a lawsuit challenging the validity of that vote Read the article………………………..
The Long Arm of the Business Judgment Rule at a Queens Condo (NY)
The Village Mall at Hillcrest Condominium, a pair of 15-story towers built in Kew Gardens Hills, Queens, in the 1970s, bills itself as a place “Where Neighbors Become Friends.” But a recent court case shows that it’s also a place where friends can become enemies – thanks to the ironclad protections and long life of […]
$260,625 Attorney’s Fees Award To HOA and Two Homeowners Prevailing On CC&R Short-Term Vacation Rental Dispute Affirmed (CA)
Lastavich v. Nob Hills Homeowners Assn., Case No. D075466 (4th Dist., Div. 1 Dec. 2, 2020) (unpublished) is an illustration of how this panned out in a real case. There, plaintiff homeowner lost a short-term vacation rental dispute as far as how the CC&Rs read and what they prohibited. Read the article…………………………………..
Condo Board Members Protected by Qualified Privilege in Co-Owner’s Defamation Claim (MI)
In Square Lake Hills Assn v Garland, unpublished opinion of the Court of Appeals, Docket No. 350403, issued November, 12, 2020, the Michigan Court of Appeals upheld a ruling of the Oakland County Circuit Court that dismissed a defamation claim brought by a co-owner against a condominium association, individual board members and the management company […]
Federal Assistance for Wildfire-Damaged Private Bridges and Access Roads (CA)
Survivors of the 2020 California wildfires who have wildfire-caused damage to their privately owned bridge or access road may be eligible for financial assistance from FEMA under the Individuals and Households Program (IHP). The assistance is intended to restore access to a primary residence. Read the article…………………………….
Is It a Limited Common Element? (FL)
Most condominium unit owners may think that limited common elements are those areas outside the condominium unit that are part of the common elements, but which are used only by a specific unit owner. However, the Florida Condominium Act defines “limited common elements” as “those common elements which are reserved for the use of a […]
Court Filing Claims Kenneth Abdalla Owes $4.2 Million To Sky Lodge Homeowners (UT)
The majority owner of Sky Lodge – who has been embroiled in a lawsuit with his fellow condominium owners for years – will be before a judge next month to explain where more than $4-million in fees and assessments have gone. Court documents show that Kenneth Abdalla, Malibu Companies and other Abdalla related entities owe […]