Recent Court Rulings

Insurer Waived Right to Sue Condo Member

Facts: A “right of subrogation” allows an insurer to choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party.

State Agency Overreached in Pursuing Association Fines

Facts: For years, a Florida condo association received complaints regarding its assessment structure. Equally sized condominiums in the community were required to pay differing assessment amounts. As a result, in 2004, the association decided that all similarly situated members are to be assessed equally for common expenses.

Member Has No Basis for Attorney’s Fees

Facts: When a member bought her home, it was next to a basin that was in good condition, free of debris and algae, and full of fish. Over time, as other homes were constructed in the community, the basin filled with debris, and the fish died. The member was unable to enjoy her property because of the smell and swarms of mosquitoes. The member eventually sued the association for negligence, nuisance, and breach of contract.

Passed Budget Ruled Valid

Facts: A board president sued his association and other board members who voted in favor of a passed budget to have the budget invalidated. The other board members asked the trial court to dismiss the president's complaint without a trial, and the trial court granted the request. The president then appealed.

Ruling: The appeals court upheld the lower court's decision.

Member Allowed to Keep Her Dog

Facts: An association sued to enforce its governing documents against a member. The member's home is governed by two sets of governing documents: one for a master association and one for a sub-association within the larger community. Both governing documents prevent a member from replacing his permitted dog upon its death. However, the documents differ in that the master association limits ownership to instances where the owner had the dog when he purchased his home.

Association Entitled to Reasonable Attorney’s Fees

Facts: A planned community of several subdivisions consolidated to form a single community association in 1999. As part of the transition process, the association recorded several amended governing documents with the county clerk. When a member purchased a home in 2000, she did not know that her property was subject to the amended governing documents. Later, the member sued to have the amended documents nullified and to have the court state that she did not have to pay assessments. The association won the case and sued the member for reasonable attorney's fees.

Lease Agreement with Wireless Company Ruled Invalid

Facts: A group of members sued their condo association and a cell phone company to prevent them from installing wireless communication antennas on the roof of the condominium building. The members were concerned that the antennas would cause ill health effects.

The lawsuit challenged a 25-year lease agreement between the board and the company. The members argued that the lease agreement violated the governing documents and asked the court to grant a judgment in their favor without a trial.

Former Management Company Must Follow Settlement Agreement

Facts: A condo association sued its management company and an insurance broker for breach of contract and negligence. After a rainstorm damaged the community and the association made a timely claim with a proof of loss under the insurance policy obtained by the management company, the association discovered that the community was grossly uninsured. Eventually, the association and the management company reached a settlement in which the company was to pay the association $26,000. At the time, the settlement terms were to include a confidentiality and non-disparagement agreement.

Law Firm Allowed to Represent Developer

Facts: A dispute arose between a condo association and a developer after the developer obtained a permit to construct a parking garage adjacent to the condominium building for its commercial property. In its plans, the developer reduced the parking available for association members and did not provide for guest parking, contrary to agreements made when the condo association sold the land to the developer's predecessor. The association sued the developer.

City Can Deny Road Services to Condo Development

Facts: Unlike other roads in the city, the roads in a subdivision-style condominium development were owned by the association, which hired contractors to maintain them and perform tasks such as snow removal. The association sued the city for denying road services and creating a heavier burden on members than on owners of single-family homes.

Ruling: A Wisconsin district court dismissed the association's lawsuit.