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Land Mines
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

Generic Drug
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

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

Paying the Bill

IMPRESSION: Unit owners who initiate litigation over common elements do not necessarily recoup attorney fees from the association—even when their lawsuit is successful, and benefits the association as a whole.

DETAILS: A shared sewer system in Adams County, Wisconsin, was the focus of a recent dispute between the Sunset Condominiums at Northern Bay Owners Association (“Sunset Condo Assoc.”), and a unit owner of the Sunset Condominiums. Larson v. Castle at the Bay, LLC, 2018 WI App 71, 384 Wis.2d 633, 2018 WL 5307100.  Prior to 2013, the area’s local sewage system was mutually utilized by neighboring developments Timber Shores and Castle at the Bay—despite being considered a common element of Sunset Condominiums.  In 2013, Castle at the Bay declared partial ownership of the sewer system, and proceeded to impose a usage fee upon Sunset Condo Assoc. Rather than respond by threatening litigation, the Sunset Condo Assoc. chose a two-tiered amicable and less expensive approach: (1) agree to shared ownership of the sewer system; and (2) consent to Castle at the Bay’s obligatory usage fees. 
Continue Reading Stuck with the Tab: Initiating Suit Over “Common Elements” Without Association Approval can Lead to Unit Owners Covering Unexpected Attorney Fees