Facts

Plaintiffs were two owners (Maples and Brown) at Compass Harbor Village Condominium Association in Maine (the “Association”) who had purchased their respective units sometime in 2007.  The Declarant was an LLC that held more than 50% of the votes (15 of the 24 units) and therefore controlled the board.  For many years the Association common areas were not property maintained in many ways.  In addition, the Association failed to hold meetings, take votes on Association matters, maintain banking or other records and refused to provide financial information to the owners.  The Declarant’s position was that “because it holds a majority of the voting power in the Association and therefore any dispute between it and any of the unit owners would ultimately be decided in its favor.”  Plaintiffs claimed to have lost about $53,000 in value in each of their units because of the actions of the Declarant.
Continue Reading Failing to Maintain and Properly Collect Assessments is a Breach of Fiduciary Duties

Facts

Plaintiff, Harmony Haus and a resident, sued Defendant, Parkstone Property Owners Association (“Association”) under the Fair Housing Act (“FHA”) seeking an injunction and attorney fees for violation of the Civil Rights Act.  Association counter sued alleging breaches of deed restrictions.  Plaintiff is a sober living residence for individuals recovering from alcoholism and drug addiction.  Plaintiff residents come directly from an inpatient treatment center.  Association argued Plaintiff was violating its “single family residential use,” its noise and nuisance provisions and its unsightly vehicle provision.  The board of the Association can enforce any violation with a fine.  Plaintiff’s seek exceptions to the Declaration under the FHA by requesting reasonable accommodation, with the specific accommodation to allow 12 residents and 8 cars to be parked on the street.  The Association contends the 8 cars is unsafe and that 12 residents would create an imposition on community resources.  Plaintiff claims the need for 12 residents to reach “critical mass” for its phasing recovery system, so more established residents can mentor newer ones.
Continue Reading Can a Group Home be Built in a Single Family Association under the FHA – YES

Facts

Plaintiffs live in Ashbrooke Property Owners Association (“Association”) and missed their annual assessment payments of $115 for three straight years.  The Association hired Defendant, Equity Experts, to collect the past due amounts.  Under the Declaration the past due assessments accrued interest at the rate of 18% per annum, plus the Association could charge a late fee and the Owner was “liable to the Association for all costs and attorney’s fees…”  Equity Experts added fees for their constant contact package and their Pre-Foreclosure package in the amount of $750 and $1,495 respectively.  In December of 2013, Defendant advised Plaintiffs that their balance was $3,199.60, but that if they did not pay within 10 days the balance may be at least $6,644.60.  Plaintiffs filed suit seeking class certification because the interest rate charged exceeded the amount allowed under Georgia law and because the demands were in excess of sums allows under the Association documents.
Continue Reading Class Action Status Granted to Association Homeowners Alleging FDCPA Violations

Summary

The Court of Appeals of Washington held that a lot owner was barred from claiming ownership of a strip of land after representing that the land was part of the adjacent lot, building a fence along the supposed boundary, allowing the adjacent lot owner to maintain and landscape up to the fence, abandoning the land, and causing the adjacent lot owner to rely on that representation.
Continue Reading This Land Is My Land, this Land is Your Land – Owner Loses Ownership of Land After Denying It Was Part of His Lot

Facts

David Bagwell was the developer of three homeowners’ associations (HOAs).  David and his wife Susan (the Bagwells), acted as directors of each of the HOAs.  Sister Initiative, LLC (the LLC) loaned money to the HOAs and was owned by Bagwells’ daughters.  Susan Bagwell was the manager of the LLC.  The Bagwells also owned several other businesses that interacted with the HOAs.  In 2010 the LLC loaned the HOAs $120,000, allegedly because of the downturn in the economy.  In 2011 the Bagwells were ousted as directors, and the LLC sued to recover on the loans.  The use of the funds is the heart of the case, as the HOAs argued that the funds were funneled to improper uses.
Continue Reading Association NOT Liable for Loans Made By Developer Related Entity

Facts

The dispute in this case centered on what rights owners of lots that did not have frontage on a lake (“Non-Lake Lot Owners”) had to place a dock in the lake based on the restrictive rights for their homeowner’s association (“HOA”) which were recorded in 1922.  The HOA consisted of 146 lots.  All Non-Lake Lots were granted a perpetual easement over and across seven lakefront outlots for their use and enjoyment, including access to the lake.  Some of the Non-Lake Lot Owners construed this broadly enough that they installed a dock and used one of the outlots for activities unrelated to the water (picnics and such).  Plaintiff, a “Lake Lot Owner”, had a letter sent to the Non-Lake Lot Owner Defendants demanding that they stop using the outlot and remove the dock.  The parties disagreed.  Plaintiff sued.
Continue Reading HOAs & Riparian Rights-Can I Put a Dock Here?

Summary

A company that handled fee collections for an Association engaged in unlawful practices when it falsely indicated that a lien had been filed against two homeowners.

Facts

Plaintiffs Chad and Caitlin Truhn fell behind on their assessment payments to their Homeowner’s Association. In their agreement with the Association, the Truhns agreed to pay the cost of collecting their fees, a task the Association outsourced to EquityExperts.org, LLC (“the Collector”). The Truhns eventually settled their debt and brought suit alleging that the Collector’s practices violate the Fair Debt Collection Practices Act (“FDCPA”). The Truhns claimed that the Collector’s collection letters contained incorrect and misleading information.
Continue Reading Debt Collectors Adherence to Generic Forms Were Inaccurate and Misleading

Facts

Diane Steele owned a home in the Diamond Farm development, which was managed by the Association. While in accordance with the Association’s declaration of covenants, conditions and restrictions, the Association must obtain at least two-thirds of the members’ total votes to increase annual assessments, assessment increases in 2007, 2011, and 2014 did not receive the requisite two-thirds vote for approval. Consequently, Steele ceased making payments. The Association brought suit seeking unpaid assessments and attorney’s fees. Steele’s defense was that she did not owe dues for the amounts of increases imposed without the supermajority required under the Declaration of Covenants.
Continue Reading Can Homeowners Sue an Association for Increasing Assessments Where the Association Did Not Receive the Requisite Votes Required?

Summary

Even where homeowners characterize their claims against an Association as civil rights violations, the claims involved in the parties’ rights under the declaration, and the declaration’s attorney’s fees provisions applied.

Facts

In 2011, David Merritt, a former HOA board member, and his wife, Salma, sued their Sunnyvale HOA, Classics at Fair Oaks (Classics), as well as three of its board members. The dispute centered on the Association’s covenants, conditions, and restrictions (“CC&Rs”) involving parking restrictions at the Classics. The HOA’s parking policy requires residents to pay for and obtain a permit for each vehicle parked on the street versus in the garage of each residence. The Merritts had a two-car garage, but only parked one car inside it. They argued that they can only park one car in the garage, because Salma is disabled, and needs additional space to enter and exit the vehicle when it is parked inside the garage.
Continue Reading Owners Pay High Price of Litigation Against Association

Summary

If your Association excessively fines an owner, expect a court to find a way to penalize the association.

The Facts

In 2004 Mr. and Mrs. Mills (“Mills”) bought a home in the subdivision called Galyn Manor.  In 2007 Galyn Manor began fining Mills for a commercial work vehicle parked in their driveway in violation of the association rules.  Galyn Manor advised Mills that the fines would be $50 for each day that the commercial vehicle was parked on their property.  By the end of 2007, the fines amounted to $645.  In January of 2008, the association hired the Andrews Law Firm (“Law Firm”) to collect the fines.  Between 2008 and May of 2015 many demands for payment were made, and many payments were made.
Continue Reading Excessive Fines Cause Courts to Find Liability – A Lesson in Fair Debt Collection Practices