Recent Court Rulings

State Court Was Proper Venue for Fair Housing Lawsuit

Facts: Homeowners purchased a property in a planned community and moved into it several months later. The community association’s declaration contained certain terms, rules, and restrictions to which all owners were subject. The owners requested, and were denied permission, to make several changes to their property. The owners ultimately made some unauthorized changes on their own. The association sued in Delaware state court for enforcement of certain restrictions contained in the Declaration of Covenants, Conditions and Restrictions for the association.

Was Board’s Water Supply Agreement “Ultra Vires”?

Facts: A condo association on the island of St. Thomas was initially sponsored by a resort corporation. The declaration required the corporation to provide fresh water and wastewater treatment services to the association at a reasonable rate to be determined by several factors. The declaration also made all of the water facilities common property of the association.

Agreement to Pay Assessments “Implied in Fact”

Facts: An association that owns and maintains the public areas within a gated community and provides services to the residents of that community sued a homeowner for dues and assessments. Following a nonjury trial, a court ruled in favor of the association. It ordered the owner to pay over $3,000 to the association. The owner appealed.

Decision: A New York appeals courtupheld the lower court’s decision.

Association Not Entitled to Apportion Attorney’s Fees

Facts: Water leaks in the common area of a condominium building damaged an owner’s unit. The owner sued the association and the building’s developer. After a jury trial, the jury found that both the developer and the association were negligent and that their actions were the direct cause of the damage. The jury attributed 80 percent of “fault” to the developer and 20 percent to the association—that is, the developer would be responsible for paying 80 percent of the damages and the association would be responsible for paying 20 percent.

Association Owed No Duty of Care to Injured Guest

Facts: A condominium unit included access to a wood rooftop deck enclosed by a railing. The owner of the unit held a party on the deck. One of the party guests climbed over the railing and walked across an unimproved portion of the roof where he fell through an airshaft and was injured. The guest sued the condo association for negligence. The association asserted that the incident wasn’t foreseeable and that it owed no duty of care to the guest. The association asked a trial court for a judgment in its favor without a trial.

Ban on Renters Applied Retroactively to Tenant

Facts: A townhome owner and her tenant challenged an amendment adopted by the association prohibiting her from leasing her unit to tenants. The owner purchased the unit before there were any restrictions on leasing individual units. The amendment was adopted in accordance with local laws and in accordance with the documents governing the units in the community.

Association Can Enforce Community Traffic Rules

Facts: An association’s bylaws provided that unless otherwise posted, the speed limit on all community roads will be 25 miles per hour and that speed limits “shall be strictly enforced.” Driving 16 mph or more over the posted limit was a “Class A violation.” Class A violations carried a $200 fine for a first offense. The association rules and regulations also contain provisions empowering the board to enforce the rules and regulations of the association, including through the use of private security guards.

Member Lacked Standing to Sue Association

Facts: A former member in a condominium sued the association, board of directors, and property manager for allegedly failing to maintain the complex’s common areas. In particular, they supposedly didn’t adequately address pipe problems and termite infestations. The defendants asked the trial court for a judgment in their favor without a trial. The trial court granted the request. The member appealed.

Decision: A California appeals court upheld the trial court’s ruling.

Member Can’t Sue Association for Punitive Damages

Facts: A member of a condominium association sued the association, alleging that its property manager, its manager’s employees, and the employees of a contractor performing balcony work in the building had made misrepresentations regarding the project. The member later requested that the trial court allow him to amend, or change, his original lawsuit to add a claim for punitive damages—that is, damagesawarded by the court against a defendant as a deterrent or punishment to redress an egregious wrong.

Unit Owners Liable for Worker’s Nail Gun Injury

Facts: A worker was injured while using a nail gun to install base moldings in a condo unit when a nail ricocheted and struck his eye. The worker sued the condo association, including its board and manager, for negligence and labor law violations. The worker claimed that the association was the "owner" of the unit because the association owned the land beneath the building, and that the board and the manager were its “agents” as a result.