Recent Court Rulings

Town Not Responsible for Maintaining Water Lines on Private Property

Facts: A condominium association sued a town over who was responsible for repairing and maintaining the water lines from the public right-of-way to the community's shut-off valve. Usually, these shut-off valves are located on a public right-of-way or as close to it as possible. However, for an undetermined reason, the association's developer placed some of these valves well within the property lines of each unit owner. The trial court ruled for the town, and the association appealed.

Ruling: A New Jersey appeals court ruled for the association.

Association Not Liable for Slip-and-Fall Injury

Facts: A member's housecleaner filed a personal injury lawsuit against the association. While cleaning one of the condominium units, the housecleaner slipped and fell on a wet tiled exterior walkway. The walkway is a common area that leads from the member's condominium down a stairway to the door of his garage. The lawsuit alleged that the association knew about the danger created by the wet tiles on the walkway but failed to make repairs. The trial court granted a judgment without a trial in the association's favor. The housekeeper appealed.

Board of Directors Acted in Association’s Best Interest

Facts: A member sued the association and its board members for allegedly breaching their fiduciary duties by rubber-stamping a neighbor's application to build a home on an adjacent lot of land. The member also alleged that the neighbor's planned development would violate the governing document by interfering with the member's views, outlook, and surroundings. The association asked the trial court for a judgment without a ruling in its favor, and the trial court granted the association's request. The member appealed.

Court Defers to Board’s Judgment Regarding Common Area Maintenance

Facts: A dispute arose between a member and his association regarding maintenance of the common areas. The member claimed that the board breached its duties under the community's governing documents by refusing to maintain some concrete, stairs, and brick areas near the member's home.

Members Didn’t Violate Community’s Lease Restrictions

Facts: An association asked the court to declare that some of the leases executed by its members were void. The complaint asserted that the leases violated leasing restrictions of the association's bylaws. The members then countersued, asking the court to declare that the restrictions were invalid.

The trial court denied the association's request to dismiss the member's counterclaim and declared that the leases were not void. The association appealed.

Ruling: A New York appeals court agreed with the trial court's ruling.

Association Entitled to Attorney Fees

Facts: A condominium member asked the court to remove a lien for unpaid assessments filed by the association. At issue was whether the owner was liable for condominium assessments from the date of the unit's purchase at a tax sale through the date the owner's right to redeem the property expired. The trial court ruled for the condo association for the amount of unpaid assessments as well as reasonable attorney fees actually incurred. When the member appealed, the association asked the trial court for attorney fees incurred in defending a judgment on appeal.

Association’s Contract with Member Deemed Unenforceable

Facts: A Colorado condominium association proposed a renovation project that included creating and selling two new condominium units. The association members voted unanimously to build and sell the two new units, and the members agreed that the new units would be offered for sale through a private auction to the members first.

Association Can’t Compel Member to Arbitrate Her Fraud Claim

Facts: A member sued her homeowners association and the association's management company for fraud, unfair business practices, and intentional infliction of emotional distress. The member alleged that the association manager had secretly diverted her assessment payments, recorded a false assessment lien claiming the member failed to pay approximately $4,300 in assessments, and made false entries in the association's books that no assessment payments from the member had been received.

Association May Be Liable for Guest’s Slip-and-Fall

Facts: A guest sued a condo association for injuries sustained in the association's parking lot. The accident occurred while she was attempting to help a physically disabled friend stand up from the ground after he allegedly slipped due to the presence of ice. As the guest was assisting her friend to his feet, he allegedly slipped on the ice again and fell on top of her, causing injuries.

Insurer Required to Cover Members’ Fire-Damaged Homes

Facts: A fire that started in one condominium unit spread to adjoining units, causing substantial fire and smoke damage. The insurer made payments to the association that covered damages to certain structural elements of the building, but did not cover individual members' damage to the interior of their units. Both parties argued over the extent of property coverage required by the association's governing documents. A trial court ruled in favor of the members, and the insurer appealed.