Liability

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Bike Accident
Facts

The plaintiff, James Schnurr, and his wife were riding their bicycles in the Jonathan’s Landing community when Mr. Schnurr struck a bollard that was installed just before the promenade they were riding along crossed a roadway.  Mr. Schnurr fell off his bicycle and fractured his neck.  He became a quadriplegic as a result of the accident.  At trial, several experts testified that the bollards were difficult to see because the Association had painted them beige, so they blended into the background. There were also no pavement markings to warn pedestrians on the promenade that they were approaching the bollards.  Mr. Schnurr and his wife sued the Association, which had a duty to maintain the promenade in its governing documents.  The Schnurrs did not sue Jonathan’s Landing, Inc., the developer of the community.
Continue Reading Condominium Association Liable for Construction Defect it Had a Duty to Maintain

Security Cameras

Facts

The plaintiff, Jody Goldstein, was beaten and robbed, resulting in serious, permanent injuries while staying as a guest at the Chateau Orleans, a combination hotel, timeshare, and condominium facility located in the French Quarter in New Orleans.  The defendant, Leisure Management, Ltd. maintained and operated the Chateau.  Upon arriving at the Chateau, the plaintiff informed management that there was a large crack in the center of the door to his unit.  The manager on duty told Mr. Goldstein that the door would be replaced, but it never was.  Further, there were no staff members or security personnel present at the Chateau at the time of the break-in.  The only security measures the management company had in place were cameras, a gate to access the property, and spike-topped gates around the Chateau.
Continue Reading Managers of Condominiums Who Know or Should Know of Security or Safety Concerns May be Required to Engage in Enhanced Security Measures

Defect
Facts

Plaintiff, Brooktree Village Homeowners Association, Inc. (“Association”), filed suit “on behalf of itself and on behalf of its members” in May 2017 against the second developer, Brooktree Village, LLC (“Developer”).  Developer had acquired the remaining undeveloped portions of the development, other than the common areas.  “A construction company affiliated with Developer, Rivers Development, Inc. (“Builder”), completed construction of the development.  Developer sold all the newly constructed townhomes to individual homeowners.”  The Association sought damages for the cost of repairs.  The claims asserted by the Association were breach of implied warranty, negligence, and negligence per se.
Continue Reading Developers/Declarants are Liable for Implied Warranties to Association for Construction Defects

Fiduciary Duty
Facts

Plaintiff, Ms. Carmichael, is on the board of directors of Commerce Towers Condominium (“Association”).  On the board with her is Mr. Frese and Mr. Vickers.  Mr. Vickers, Mr. Frese and Mr. Tarantino are the officers of the Association. (collectively “Officers”).  All three are also the officers of Tarantino Properties, Inc. (the “Management Company”). Carmichael and other unit owners (collectively “Owners”), individually and on behalf of the Association, sued the Officers and the Management company for breaches of fiduciary duties and for unjust enrichment because the Officers caused the Association to provide for the maintenance and preservation of property that was not part of the Association (the retail space of the buildings).  The Officers and Management Company asserted that the Owners did not have standing to sue on behalf of the Association (a derivative suit).
Continue Reading Self-Dealing by Director is a Breach of Fiduciary Duty (Case 2)

Fiduciary Duty
Facts

Plaintiff, Coley, owns a home in an HOA, the Eskaton Village (“Association”).  Two other Eskaton named entities (“Eskaton”) develop and support HOAs.  A five-member board runs the Association, subject to the Declaration.  Eskaton has always controlled three of the five directors on the Association Board because it owns 137 of the 267 units.  The three directors are always employees of Eskaton and are “financially incentivized to run the Association for the benefit of Eskaton.”  In short, the better Eskaton performs the higher their compensation, which is directly related to the expenses of the Association.  Coley, one of the other two directors, filed suit because of various acts by the other directors to benefit their employer at the expense of the Association, including disclosing attorney client privileged communications.
Continue Reading Self-Dealing by Director is a Breach of Fiduciary Duty (Case 1)

Hockey Ref
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

Inspector
Summary

A single warranty date applies to each condominium building in a development.  Meaning that each unit does not have its own warranty date, and units in different buildings will likely have different warranty dates, unless they happen to be completed on the same date. 

The Facts

Village Lofts Condominium Association consisted of two buildings: A and B.  Building A was substantially completed in 2003 and Building B was substantially completed in November of 2004.  In 2014 the Association discovered various water leaks in Building A.  In June of 2015 they had also found similar leaks in Building B.  The Association repaired the leaks throughout both buildings.  In August 2015 the Association sued the developers and contractors for breach of warranty, breach of contract and negligence.  The defendants brought motions for summary judgment arguing that that the Association couldn’t bring a suit after 10 years based on the statute of repose (similar to a statute of limitations).
Continue Reading Investigate for Hidden Defects at Turnover or Pay the Price

Facts: The facts in the case of Forrest v. The Ville St. John Owners’ Association, Inc., No. 2018-CA-0175 (La. Ct. App. Nov. 7, 2018) are straightforward.  In March of 2016 there was a fire.  It damaged common element and the Forrest unit.  The Association had two insurance policies: one for Property and one for Community Association Management Liability Coverage.  The Property policy was issued by Lloyd’s of London. Lloyd’s paid on its policy, for both the common element and unit damages, but the funds were insufficient to repair the common elements and the unit.  So the Association repaired the common elements.

Trial Court: The unit owner, Forrest, filed suit against the Association alleging breach of fiduciary duty and various other claims under state law.  …
Continue Reading Insurance is NOT all the Same-Another Case Proving Why You Need an Insurance Committee