Association Had Authority to Fine Member for CC&R Violations
Facts: A homeowner who violated the rules in an association’s governing documents was fined. He sued the association, claiming that it couldn’t lawfully impose fines on its members. He argued that: (1) only a government can impose fines; (2) the restrictive covenants do not authorize the imposition of fines; (3) the bylaws’ provisions concerning fines are not the equivalent of a liquidated damages provision in a contract but rather constitute unenforceable contractual penalties; and (4) the association’s imposition of fines violates public policy.
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