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 v. Johnson, Case No. G058269 (4th Dist., Div. 3 Dec. 17, 2020) (unpublished), is just a reminder about how expensive HOA/homeowners disputes can be.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 […]
HOA Homefront: Why new ‘unreasonable’ rental bans look manageable (CA)
This year in Sacramento only one major HOA bill, Assembly Bill 3182, passed to become law effective Jan. 1, 2021. The bill creates a new Civil Code Section 4741 banning “unreasonable” HOA rental restrictions. The new law creates some uncertainties but is mostly manageable. Read the article……………………………
Column: In an extraordinary letter, Chicago’s Newberry Library delves into its own past support of racially restrictive covenants (IL)
Race and real-estate are inextricably linked in Chicago. So when the august Newberry Library opened a 2016 exhibition entitled “Civil War to Civil Rights: African American Chicago in the Newberry Collection,” the artifacts on display included a sample of a racially restrictive covenant. What the Newberry Library did not emphasize, though, during that 2016 exhibition, […]
Trial underway over use of Federal Street condo (MA)
After more than four years, a lawsuit over the conversion of a commercial space on Federal Street into housing has made its way to trial. The lawsuit seeks to overturn a 2016 Salem Zoning Board of Appeals decision that allows Richard Jagolta to convert the first floor unit of 107 Federal St., which is zoned […]
MI Court Rules that Dangerous Dog Must Be Removed from Condominium
In Parkview at Orion Commons Condominium Association v Rouhan, the Oakland Circuit Court held that a dog who bit a neighboring co-owner is a dangerous animal that must be removed from the condominium premises. The Court determined, on the basis of the parties’ briefs and without oral argument, that the dog was dangerous, and granted […]
Attorney Fees Not Always Awarded (FL)
Clients are often disappointed to find out that an attorney’s fees are not part of every judgment. Most think it is only fair that because they have been wronged, one way or another, the wrongdoer should pay all of their expenses. That just doesn’t happen often. Read the article…………………………………..
Washington Court of Appeals: Business Judgment Rule Only Protects Directors
The Washington Court of Appeals recently decided in a published opinion that the business judgment rule protects the directors of a condominium or homeowners association from personal liability but does not immunize the association itself. Read the article…………………………………
Developer nears end of endless Long Beach condo dispute (CA)
The developer behind a mostly unbuilt condominium project in Long Beach is closing in on what could be a big payday. Haberman & Haberman won a lawsuit against the Nassau County municipality and a Nassau County judge is now hearing arguments for how much the city should pay in damages, Newsday reported. The builder wants […]
Condo Owner’s Claims Seeking to Hold Developer Liable Survive Motion to Dismiss (MA)
In Hershey v. Mount Vernon Partners, LLC, Judge Green faced dueling motions to dismiss in a dispute arising from the purchase of an “ultra-luxury” condominium in Beacon Hill. Judge Green granted Brett Hershey’s motion, in part, dismissing counterclaims for interference with business relations and violation of the Massachusetts Wiretap Act Read the article……………………………
La Jolla Shores Association pushes forward in legal case against UCSD development plan (CA)
The La Jolla Shores Association has authorized its executive committee to make further decisions regarding a recently filed lawsuit against UC San Diego and the University of California challenging UCSD’s planned Theatre District Living and Learning Neighborhood. The lawsuit was filed last month in San Diego County Superior Court by Escondido firm DeLano and DeLano […]
New Appellate Case Raises Issues For Mixed Use Developments in Florida
A recent decision by the Third District Court of Appeals has engendered uncertainty about the manner of creating mixed used developments containing a residential condominium component in Florida. The case of IconBrickell Condominium No. Three Association v. New Media Consulting, LLC, decided October 7, 2020 involved an appeal from summary judgment granted to an owner […]
Condo Owners Win Lawsuit Over Construction Defects (NY)
Buyers of recently built condominiums with construction defects – by no means an exclusive club in New York City – have reason to rejoice. In a new ruling, the Appellate Division of the State Supreme Court has clarified a 2013 ruling, paving the way for condo boards to seek compensation from sponsors and investors for […]
Dead Tree Lawsuit Against HOA Arborist Dismissed
Contemporary land development policies would not work well without trees. Lot owners use trees for shade, ornamentation, and to screening. Subdivisions, especially cluster developments, often include common areas where trees or shrubs provide dense visual screening of the development. Vegetation can be more attractive and taller than fences. When a tree dies, it transforms from […]
California Clears the Path for Rentals in Residential Common Interest Developments
Consistent with California’s trend of removing barriers to affordable housing, Assembly Bill 3182, which goes into effect on Jan. 1, further limits the ability of residential common interest developments to restrict rentals in their communities. Read the article……………………………
James Cawlo. v. Rose Hill Reserve Homeowners Association, Inc. et al. (Fallen tree) (VA)
New Fairfax Circuit Court opinion in a case where a landowner sued the HOAs tree inspector for failing to determine that a tree in their backyard was dead (the tree fell and hit someone after inspection) Read the opinion (PDF)………………………………….
This Case Went to the Dogs, Then to Court (NY)
They might be man’s best friend, but what happens when dogs attack the residents of a condominium community? In Board of Managers of Fishkill Woods Condominium v. Gottlieb, the State Supreme Court’s Appellate Division considered that issue, but also the important issues of whether the condominium board had the right to impose fines, and whether […]
Elk Creek Ranch Owner’s Association wins case (CO)
Elk Creek Ranch Owner’s Association prevailed in its lawsuit against developer William H. Wheeler for breaching his fiduciary duties while he was a director on its board. Elk Creek Ranch is a premier fly-fishing and hunting club outside Meeker, Colorado. An eight-person Rio Blanco county jury also found that Wheeler’s company Elk Creek Operations, LLC […]
Court Rules in Favor of Brooklyn Condo Board: Business Judgment Rule Protected Board, Say Attorneys (NY)
Read the article……………………………
Court puts condo investors on the hook for shoddy construction (NY)
New York City condo investors may increasingly find themselves having to dig into their wallets to pay for any construction defects, according to a new court ruling. The Appellate Division of state court upheld a ruling last week that a condominium board does not have to prove a fiduciary or confidential relationship between itself and […]
California 2020 Legal Update
This year’s legislative session was unlike any other, as the novel coronavirus (COVID-19) pandemic forced the State of California and its 2020 legislative session to suspend its routine schedule. As a consequence, the focus of the Legislature shifted to pandemic relief, and for our State’s 40,000+ common interest developments, this means changes to combat issues […]
Animal Accommodation Law: Case Roundup
Disability discrimination is one of the most common fair housing complaints, and it’s no surprise that HUD has filed several discrimination charges for denials of animal accommodation requests in the past few months. We’ve summarized the most notable cases: Read the article…………………………….
Michigan Condominium Association found not liable for violating the Fair Housing Act and PWDCRA in request for handrail
In Estate of Romig by Kooman v Boulder Bluff Condominiums Units 73-123, 125-146, Inc, No. 347653, issued October 15, 2020 (Docket Nos. 347653 & 348254), the Michigan Court of Appeals ruled that a condominium association’s alleged denial of a request to install a railing to accommodate a disabled person did not constitute discrimination in a […]
Hiding in Plain Sight: What Are “Discriminatory Covenants” and Does Your Association’s Governing Documents Contain Them? (FL)
One of the last few bills to be approved by Governor DeSantis at the end of this year’s legislative session was Senate Bill No. 374 which became law on September 4, 2020. The new law defines and prohibits “discriminatory restrictions” from any title transaction recorded in the State of Florida and creates section 712.065, Florida […]