Recent Court Rulings

Association’s Boat Prohibitions Can Be Enforced

Facts: A homeowner bought a lakefront lot in a community association. Before the purchase, he received and reviewed the community association's covenants and rules. Shortly after moving in, the owner began storing a pontoon boat along the water's edge, which was part of the community's “green belt” area—that is, property around the lake and between the shoreline and the property of individual owners.

Board Can Terminate Member’s Proprietary Lease

Facts: An apartment building tenant entered into a written agreement with her then-landlords, who wanted to turn the building into a co-op. Under the terms of the agreement, the tenant was permitted to continue living in the apartment and was given one share in the co-op, making her a “proprietary lessee,” in addition to being a co-op member.

State Law Unconstitutionally Impaired Association’s Governing Documents

Facts: Organized in 1986, a Florida community is a mixed-use condominium with 810 residential units, 259 commercial units, and 141 retail units. The community's governing documents provide for a seven-member board of directors governing the association, with two members each elected by the residential unit members, the commercial unit members, and the retail unit members, and the seventh member elected-at-large.

Association Awarded Attorney’s Fees for Frivolous Discrimination Claim

Facts: An African-American couple bought a condominium in 2004 as a rental property investment. When the bylaws were amended in 2007, the couple sued the association and its individual board members, alleging housing discrimination. The couple claimed that the association's new leasing restrictions had a negative impact on the availability of rental housing for minorities and other protected classes in the area.

Developer and Housing Authority Can Sue Association to Invalidate Leasing Restriction

Facts: The Chicago Housing Authority (CHA) and a community's developer filed a lawsuit against the master association and its board of directors for leasing restrictions the association adopted. The community consists of single-family homes, townhomes, and two-flat condominium buildings.

Signed Agreement Released Association and Contractor from Liability

Facts: A member's condominium was substantially damaged by a fire. The governing documents required the member to appoint the association as attorney-in-fact to interact with the insurer regarding the coverage of the fire damage. A contractor was subsequently engaged to perform the necessary repairs. And the association was to oversee the contractor to ensure that the work was completed.

Association Lien Superior to Tax Lien Before Recorded Date

Facts: A member became delinquent on his assessment payments to the condo association starting in November 2008. The member had also failed to pay federal income tax, and the Internal Revenue Service (IRS) assessed his tax obligation on March 17, 2008. The IRS didn't record a notice of federal tax lien until January 2009. And during this time, the member remained delinquent on his association assessments.

Member Liable for Unpaid Dues and Late Fees

Facts: An association filed a small claims action against a member, seeking unpaid dues and late fees. The member filed a counterclaim alleging slander and defamation against two board members. At the hearing, the member admitted that he had not paid dues since 2007, but claimed that the association could not collect, because it was not a legal entity capable of initiating a lawsuit. The member argued that the association is in violation of several provisions of Indiana state law relating to associations.

Association Can Foreclose on Condo Without Bank Intervention

Facts: A condominium association brought a foreclosure action against a member for unpaid maintenance fees and assessments. The member had purchased two condominium units in the building and had added an internal stairway to connect the two units. The units retained their separate addresses, and the upper unit had no loan recorded for it.

Underinsured Association Liable for Limited Flood-Related Damage

Facts: A member sued his condominium association for negligence for failing to pursue a claim on his behalf under the association's flood insurance policy. The member owned a basement condominium unit. The association held a flood insurance policy on the building, and the member held a separate, secondary flood insurance policy on the condominium. The member's policy contained a clause stating that it provided building coverage for flood-related damage in excess of the policy issued to the association.