Does your Association have rules that target children?  Does your Association have rules that apply differently to children and adult residents within the community?  The following case is a cautionary tale for Condominium Associations and HOAs—repeal those rules now, or potentially face a losing battle pursuant to federal law.

Facts

In a federal district court case from early 2020, a homeowner brought suit against his HOA alleging that the Association’s rules with respect to use of the tennis courts, the pool, and clubhouse were discriminatory.  The tennis court rules stated that adults had court privileges over children after 3:00 PM on weekdays and any time on weekends and holidays.  The pool rules stated that residents 14 through 18 years of age were limited to one pool guest per person, while adult residents were permitted to have up to 6 pool guests at a time.  The clubhouse rules stated that it was reserved for adult use only during summer months while the pool was open.  The homeowner claimed that these three rules discriminated against families with children (also known as “familial status”), which is prohibited by the federal Fair Housing Act (FHA).
Continue Reading Rules that Target Children Really Target Your Association (for Discrimination Lawsuits)

IMPRESSION: The ruling in Great Am. Ins. Co. v. State Parkway Condo. Ass’n, No. 17-cv-3083 (N.D. Ill. Sept. 11, 2018), should serve as a cautionary tale to Condo and HOA boards.

DETAILS: In Chicago, a unit owner of a condominium located at 1445 North State Street filed an Illinois state discrimination claim in 2007 against the State Parkway Condominium Association (“SPCA”) for failure to accommodate his hearing disability during SPCA Board meetings.  The SPCA defended the claim under its 2006-2007 Non-Profit Management and Organization Liability Insurance Policy (“policy) issued by Travelers Casualty and Surety Company of America (“Travelers”).

A settlement between parties was reached in September 2007; but six months later, the SPCA sued the same unit owner in an entirely unrelated matter.
Continue Reading “Related Wrongful Acts” Can Exhaust an Association’s Liability Insurance Policy Limit